PepsiCo Announces Strategic Investments to Drive Growth; Says Offers Most Compelling Value as One Company

PepsiCo PEP announced today a series of strategic investment and productivity initiatives to deliver top-tier, sustainable long-term growth for its shareholders. These decisions are based on a comprehensive review by the Company's management of its portfolio, brands, costs, organization and capital structure. As a result of its review, the Company reaffirmed its commitment to an integrated food and beverage portfolio through a one-company platform. The Company reaffirmed the underlying strength of its integrated food and beverage portfolio -- and concluded that PepsiCo offers the most compelling value to shareholders as one company. The company announces : Plans to increase advertising and marketing support behind its global brands by $500-$600 million in 2012, with particular focus on North America; going forward, it expects to maintain or increase that rate of support as a percentage of revenues Multi-year productivity program expected to generate $1.5 billion of incremental cost savings by 2014 through optimization of operating practices and organization structure, including a reduction in force of about 8,700 employees, about 3 percent of global workforce Company targets high-single-digit core constant currency* EPS growth for 2013 and beyond after a transition year in 2012, in which it expects core constant currency EPS to decrease by 5% Announces plan to increase returns to shareholders in the form of higher dividends and share repurchases in 2012