PepsiCo plans to integrate its North America snacks and drinks businesses to boost productivity and market competitiveness. The move aims to create efficiencies, cost reductions, and growth opportunities by merging Frito-Lay North America and PepsiCo Beverages North America. The company will focus on operational investments and commercial activities to drive value and performance.

CEO Ramon Laguarta highlighted the benefits of combining the two large businesses, with revenues of nearly $30 billion each, to optimize the value chain tasks. The integration will prioritize cost reduction and improved performance over the next few years, leveraging technology and data analytics for better outcomes. The plan includes synergizing operations for enhanced efficiency and profitability.

Details of the integration plan are still forthcoming, with questions remaining about the structure of the North America business units. The consolidation is expected to yield savings that will be reinvested in growth and profitability initiatives. PepsiCo’s international division has been a key driver of revenue growth, with a focus on innovation in foodservice and retail offerings.

A big push into protein beverages without artificial ingredients is on the horizon, along with permissible snacks in the health space. The company aims to capitalize on consumer trends and deliver superior products in line with evolving preferences. Finance chief Jamie Caulfield anticipates significant productivity savings in the second half, particularly in the Frito Lay division, through cost optimization efforts.

Read more at Yahoo Finance: PepsiCo moves toward North America “integration” in productivity drive