Woman named CEO of Pepsi-Cola

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Pepsico Inc. Chief Financial Officer Indra K. Nooyi will replace Steven Reinemund as chief executive, the Pepsi-Cola and snacks company said yesterday, making her the No. 2-ranked female CEO in the Fortune 500.

With her Oct. 1 appointment, Mrs. Nooyi takes her place in an elite group of 11 female CEOs running Fortune 500 companies. Patricia Woertz at agricultural processor Archer Daniels Midland Co. ranks first. ADM is ranked 56th in the Fortune 500, while Pepsico, the world's second-largest soft-drink company after Coca-Cola Co., is ranked 61st.

"I'm very excited and at the same time very humbled," she told analysts during a conference call yesterday morning.

Mrs. Nooyi said she felt fortunate to be taking over at a time when Pepsico was in such a strong position, with solid growth across all its business units. She and Mr. Reinemund have worked closely over the last five years, and Mrs. Nooyi described their relationship as one in which they complete each other's sentences.

"Indra Nooyi is truly a star and has been working side by side with Mr. Reinemund over the past several years," Citigroup analyst Bonnie Herzog wrote. "She has been very involved with every major decision Pepsico has made over the past five-plus years, and therefore, we expect this transition to be very smooth."

A Madras, India, native and graduate of the Yale School of Management, Mrs. Nooyi stays true to her heritage by often wearing a sari to Pepsico events, according to Forbes.com. It quotes her as saying: "Being a woman, being foreign-born, you've got to be smarter than anyone else."

Mr. Reinemund said he is retiring to spend more time with his family.

"I can't tell you how excited I am to pass the baton to Indra," he said yesterday.

Wall Street analysts said they were surprised mainly at how early the transition is being made.

"While we are surprised by this move, Pepsico's deep bench gives us confidence that the strong momentum the company has delivered should continue," Morgan Stanley analyst William Pecoriello wrote.