The largest beverage corporation PepsiCo Inc has announced that its long-term chief executive officer Indra Nooyi will step down after 12 years of leading the food and beverage giant. Nooyi has been with PepsiCo for 24 years and now will continue as chairman of the board until early 2019.
After her resignation, President Ramon Laguarta will be joining in as her replacement. Laguarta will take over from Nooyi on 3rd Oct 2018 and will also join the board.
“I’ve had a wonderful time being CEO, but at some point you sit back and say, look, it’s a responsible move to effect an orderly transition and to have somebody else take over the leadership of this company. Being a CEO requires strong legs and I feel like I ran two legs of a relay race and I want somebody else with nice strong legs and sharp eyes to come and lead this company,” Indra Nooyi said.
Since she was appointed on the CEO role in October 2006, Pepsi stock gained cumulatively 79 percent. It grew net revenue by more than 80 percent from $35 billion in 2006 to $63.5 billion in 2017.
Under the management of Nooyi, Pepsi steadfastly kept the two businesses together, arguing in favor of the combined leverage it gives the company over retailers. Nooyi is the second female CEO of a food and beverage company to resign the post since May. Prior to this, Campbell Soup’s Denise Morrison also resigned from the role of CEO.
“Growing up in India, I never imagined I’d have the opportunity to lead such an extraordinary company. I’m especially proud of the great work we’ve done in India to transform our portfolio to include more nutritious products, working with and supporting thousands of Indian farmers, and providing an inclusive workplace…” Nooyi stated. “PepsiCo today is in a strong position for continued growth with its brightest days still ahead.”
Nooyi steps down at a time when consumption of carbonated soft drinks in the US has declined to a great extent in over 30 years as the consumers are avoiding sugary drinks.