Concluding a career marked by efforts to adapt to changing consumer tastes, longtime PepsiCo Inc. (PEP, Financial) CEO Indra Nooyi announced Monday that she is stepping down after 24 years with the company.
She is being succeeded by President Ramon Laguarta, who will become the New York-based food and beverage giant’s sixth CEO.
In a statement, Nooyi reflected on her 12 years leading the company, calling it the “honor of [her] lifetime.”
”Growing up in India, I never imagined I'd have the opportunity to lead such an extraordinary company,” she said. “Guided by our philosophy of Performance with Purpose—delivering sustained performance while making more nutritious products, limiting our environmental footprint and lifting up all the communities we serve—we've made a more meaningful impact in people's lives than I ever dreamed possible. PepsiCo today is in a strong position for continued growth with its brightest days still ahead."
Laguarta, who has been with the company for 22 years, has been president since September, overseeing global operations, corporate strategy, public policy and government affairs. Prior to that appointment, he served in leadership roles in the company’s European and African divisions. Before joining PepsiCo, he worked for Spanish confectionary company Chupa Chups SA.
Nooyi praised her successor in a prepared statement, saying he is “exactly the right person” to take the 53-year-old company to new heights.
“He is a terrific executive with a long and proven track record of growing businesses,” she said. “He has a deep understanding of the changing preferences of consumers and other critical trends unfolding around the world, and he has demonstrated that he knows how to navigate them successfully.”
Laguarta also commented on his appointment.
“I'm incredibly humbled and privileged to be appointed the next CEO of PepsiCo, and I want to thank the Board of Directors for the confidence they have placed in me with their decision," he said. "I also want to thank Indra for her overwhelming support. She has transformed the company with her bold vision and outstanding leadership, and I feel fortunate to have her as a mentor and a friend.”
While the change is effective as of Oct. 3, Nooyi will remain on the board as chairman until early 2019 to ensure a smooth transition. No other top leadership roles are changing.
A forerunner in the food and beverage space, PepsiCo is second only to Coca-Cola Co. (KO, Financial), which holds 43% of the non-alcoholic beverage industry, according to GuruFocus’ industry overview page.
In July, the company posted second-quarter earnings of $1.61 per share on $16.09 billion in revenue, beating analysts’ expectations of $1.53 in earnings per share on $16.05 billion in revenue.
Following the announcement, shares of PepsiCo were up approximately 1.41% at $117.94 in early Monday afternoon trading. GuruFocus data shows the stock is flat year to date.
Disclosure: No positions.
