"The consolidation of our retail customers and consumer demand for more variety are the two primary market forces driving this realignment," said Eric J. Foss, president and chief executive officer of PBG. "By making organizational changes that reflect new market dynamics as well as investing in our supply chain operations, PBG will be better positioned to capture the full growth potential of our product portfolio, while enhancing our selling, service and operational capabilities. We are confident these moves will help us grow long-term shareholder value."

In the second half of 2007, PBG will record a pre-tax charge of approximately $30 million to $40 million, or $0.09 to $0.12 per diluted share after-tax, associated with this realignment, which is primarily for severance and other employee-related costs. The after-tax cash expenditures are expected to be approximately $20 million to $25 million. The organizational realignment is expected to result in annualized, pre-tax savings of approximately $30 million.