POWER PLAY: The decision by Steve Reinemund, 56, to make the $14 billion acquisition of Quaker Oats continues to pay off in repositioning the junk-food baron to a spectrum of fun to good-for-you foods and beverages. Recent hires illustrate the company's evolution from a traditionally distribution-driven organization toward a more classic package-foods model. While not quite a vanguard in nontraditional marketing, Pepsi is stepping up its interactive and viral efforts, led by such brands as Mountain Dew and Frito-Lay. The marketer is reducing its addiction to network TV and has put a greater emphasis on Hispanic marketing.
DOWNSIDE: PepsiCo's CEO would be wise not to underestimate the threats from reawakened rivals. Perhaps more immediately, the successive departures of three key executives-Gary Rodkin, now president-CEO of ConAgra Foods; Mary Dillon, now chief marketing officer of McDonald's; and Stephen Quinn, now senior VP-marketing at Wal-Mart-mar Mr. Reinemund's record of stable management.