More on Pepsi Reorg: Bevs Map Aligns with Frito; Former Great West Chief Gramann Takes Newly Set Field Execution Post    Tho PepsiCo’s acquisitions of Pepsi Bottling Group and PepsiAmericas are done deal – and seem to have inspired Coca-Cola to undertake similar move with acquisition of CCE’s N Amer operations – they’re still big gamble until co can make them pay off at street level.  That takes more than slashing headcount, tho that gets PEP part of way toward reaping projected $550 mil in “synergies.”  With latest reorg, co takes crucial step in making bottler acquisitions pay off at street level, aligning territory to foster collaboration with Frito-Lay snacks unit and appointing former biz unit chief to new role focused on effective execution. 

“While our integration efforts, to date, have been focused on headquarters functions and processes, the time has come to advance our integration work in the field,” said Eric Foss, ceo of Pepsi Beverages Co, in note to troops late last week.  Latest changes “are designed to deliver even greater speed, efficiency and collaboration.”

Tho it hasn’t been spelled out in any detail yet, that “collaboration” clearly involves bevs’ Power of One sibling, Frito-Lay snacks operations, which operates distinct DSD system.  As anticipated, reorg redraws lines of Pepsi Beverages Co biz units to better coincide with those of Frito, at time that even indie DSD shops have been prospering by taking snacks aboard once bev-only trucks.  To get there, PEP narrowed # regions from 6 to 4, to coincide with Frito’s: Baltimore-based North biz unit, Chicago-based Central biz unit, Orlando, Fla-based South biz unit and Denver-based West biz unit.  As reported, those units are headed by Pat Boggs, Todd Eveland, Derek Lewis and Mike Spanos, respectively (BBI, Feb 11).  US biz units are flanked by PBC Mexico led by interim prexy Dionisio Martin and PBC Canada led by Richard Glover.  All of them report directly to Victor Crawford, prexy of field operations. 

Margaret Gramann, who’d led now-dissolved Great West biz unit, has moved into newly created post of svp field execution & capability, with mandate of “regaining our executional advantage across the entire North American organization,” per note to staff from Victor.  Former Central biz unit chief Scott Gillesby will retire later this year after 29 years at PEP, while former West chief Craig Reese segues to svp foodservice at Yum Brands.  Their offices, at Auburn Hills, Mich, and Aliso Viejo, Calif, apparently will be closed.  Transition is under way and targeted for completion by end of mo, likely at cost of several hundred jobs.  Some sources said at least some of terminations associated with reorg were handled by corporate HR staff rather than managers within regions.

“By consolidating our BUs from 6 to 4, and streamlining our corresponding MU (marketing unit) structure, Field Operations can more effectively focus on execution and service, on developing talent, and on driving success at the local level,” Crawford wrote.  “In addition, by aligning our structure with Frito-Lay’s US field structure, we will tighten our Power of One advantage with PepsiCo to accelerate growth for us, and for our customers with even greater focus on sales and service.”