Pepsico announced on Monday that Indra Nooyi will step down as the chief executive officer, on October 3, ending a 24-year run with the organisation, half of which she spent as the company's chief executive.
Laguarta will be the sixth CEO in PepsiCo's history, with all of them coming from within the company.
Nooyi will remain chairman of the board until early 2019.
PepsiCo CEO Indra Nooyi will step down after 12 years of leading the food and beverage giant. Ramon Laguarta, a 22-year PepsiCo veteran who was promoted to president last year, will take over as the CEO, the company said. She spearheaded Pepsi's transition to a greener, more environmentally aware company. He became president of PepsiCo a year ago, overseeing its global operations, strategy, public policy and government affairs.
"PepsiCo today is in a strong position for continued growth with its brightest days still ahead", she added. "Laguarta equally represents continuity and the necessary agility for PepsiCo", said Daniel Vasella, chairman of the board's Nominating and Corporate Governance Committee.
Nooyi was named as Fortune's second most powerful woman in business past year, coming after chairman and CEO of General Motors, Mary Barra.
He also served as CEO of the company's Europe Sub-Saharan Africa division before becoming president. He is a terrific executive with a long and proven track record of growing businesses. According to PepsiCo's Presiding Director Ian Cook, PepsiCo shareholders have benefited during Nooyi's tenure. The company's share price has risen 78 percent in the same period.
"I'm proud of all we've done to position PepsiCo for success, confident that Ramon and his senior leadership team will continue prudently balancing short-term and long-term priorities", said Nooyi.