PepsiCo veteran Ramon Laguarta to replace Indra Nooyi as CEO

PepsiCo Inc said on Monday Indra Nooyi would step down as its longtime chief executive officer, handing over the reins to company veteran Ramon Laguarta, who has vast international experience spanning several continents.

Laguarta starts on Oct. 3 and will be PepsiCo's sixth CEO in its 53-year history. He takes over as the beverage maker navigates a shrinking global soda market and evolving snacks sector, and spends more to stay one up against rival Coca-Cola Co and nascent players eating into market share.

“Ramon Laguarta is exactly the right person to help build on @PepsiCo's strong position and success. He has been a critical partner and friend and I am positive that he will take PepsiCo to new and greater heights in the years to come,” Nooyi tweeted on Monday.

A 22-year veteran of PepsiCo, Laguarta oversaw global operations, corporate strategy, public policy and government affairs in his role as president.

He previously headed Europe Sub-Saharan Africa division - a unit PepsiCo characterized as “one of the most complex business divisions in the company,” due to operations spanning three continents, with a mix of developed, developing and emerging markets.

Laguarta, 54, was named president of the company in September of last year and was tipped to succeed Nooyi. He also formerly led PepsiCo's Eastern European operations.

“With a deep understanding of PepsiCo's international operations, and a broader understanding of the total company portfolio in his role as president, we believe that Laguarta is well-placed to continue executing on PepsiCo's current strategy,” analysts at Cowen & Co said.

PepsiCo's international operations rely less on beverages and more on snacks, an area Nooyi is largely credited with re-shaping and expanding as consumers shifted away from sodas and focused on healthy foods.

The Frito Lay snacks business now contributes 46 percent in total operating profits, nearly double its beverage business.