The No. 1 Reason Investors Are Mad At Pepsi’s CEO Right Now

indra nooyi

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Pepsi and Coke have been battling it out for years, but lately Coke has surged ahead. Which is why Pepsi is seriously rethinking its strategy for 2012, and there’s a lot of pressure on its CEO, Indra Nooyi, to change her vision, reports Mike Esterl at the Wall Street Journal. When Nooyi came on board in 2006, she pushed to break into the snack food business, especially healthy foods, with acquisitions like its $5 billion purchase of Russia’s Wimm-Bill-Dann Dairy and Juice Co.

But investors are saying Nooyi has been too focused on doubling the company’s revenue from healthy products, when it should have been focused most exclusively on gaining an edge over Coke. This is interesting, because there’s been a huge health food trend in the past decade. Though none of Pepsi’s products are as high-profile as its namesake brand.

Some analysts are saying the company should split up like Kraft, which spun its grocery business in August. It’s also possible that the company will cut thousands of jobs; and it will pour around $500 million into advertising its soft drinks in North America.

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