Pepsi CEO Indra Nooyi is going out with a bang. Nooy, already credited with increasing Pepsi’s sales by 80 percent over her tenure, reorganizing the company into three divisions, and placing more emphasis on consumer demand for healthy alternatives, just completed a $3.2 billion acquisition of Israeli company Sodastream as part of the healthy alternative option.
Sodastream is a do-it-yourself (DIY) soda alternative that provides the sweet taste without the sugar found in conventional sodas, as well as on-demand flavors, makes a lot of sense for Pepsi, and its healthy alternative strategy. As a DIY device, it also extends Pepsi’s distribution to the growing DIY market for which Pepsi was on the sidelines. (Expect Coca Cola to follow for obvious reasons). Based on news of the deal, along with Sodastream’s repositioning as a sparkling water company, its stock surged more than 320%.
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The deal will be funded using Pepsi’s cash on hand and has been unanimously approved by the boards of both companies. It is expected to close by January, pending a SodaStream shareholder vote and certain regulatory approvals.
Nooyi, who will be replaced by Ramon Laguarta, Pepsi’s head of global operations, helped turn Pepsi into one of the most successful food and beverage companies in the world. Sales grew 80% during her 12-year tenure.
For this latest move, and likely her last, Nooyi’s legendary status as a food and beverage rainmaker is solidified.