NEW YORK: Indra Nooyi, one of the most prominent female CEOs, will step down as head of PepsiCo following 12 years navigating the soft drinks and snacks company through a tricky climate of often unpredictable consumer preferences on health and sustainability.

Nooyi, 62, who was born in India, will be replaced as chief executive by President Ramon Laguarta on October 3, but will remain as chair of the board until early 2019 to oversee the transition.

Among the 500 companies in the S&P 500, only 25 — or five per cent — are led by women, including Nooyi.

Her tenure included sparring with activist investor Nelson Peltz and fighting against a spate of municipal soda taxes.

In October 2016, PepsiCo unveiled 2025 sustainability targets that included vows to reduce waste and to ensure at least two-thirds of its global beverage portfolio contain less than 100 calories per serving.

Even as Nooyi has stressed these long-term targets, she has been unapologetic in touting the company’s products, which include snacks under the Frito-Lay banner such as Dorito chips, in addition to sugary carbonated drinks such as Pepsi cola and Mountain Dew.

Analyst Neil Saunders praised Nooyi for leading during an “extremely challenging” period in consumer products, praising in particular the decision to stick with snacks.

“With demand for soda under pressure, PepsiCo can now take comfort in the fact that it has a balanced portfolio of products — including in emerging areas like plant-based snacks from its recent acquisition of Bare Foods,” said Saunders, managing director of GlobalData Retail.

PepsiCo presiding director Ian Cook hailed Nooyi as a “pioneer” among major chief executives in introducing sustainability targets into business performance and for upping its portfolio of healthier foods.

“She has delivered strong and consistent financial performance, managing with an eye toward not only the short-run, but the long-run as well,” Cook said of Nooyi.

“And shareholders have benefited: $1,000 invested in PepsiCo in 2006 is worth more than two-and-a-half times that amount today.”

Nooyi came to the United States in 1978 to attend the Yale School of Management on a scholarship and worked at PepsiCo for 12 years prior to being tapped to lead the company.

Under her leadership, PepsiCo net revenues rose from $35 billion in 2006 to $63.5bn in 2017, with much of the growth coming from international markets.

PepsiCo’s moves included buying a 50pc stake in US hummus maker Sabra in 2008 and acquisition of Brazilian snack company Mabel in 2011, a year that also saw the company unveil an alliance with Tingyi Holding in China.

Published in Dawn, August 7th, 2018