Business briefs

PepsiCo restructuring won't impact area jobs

PepsiCo Inc. announced a restructuring on Thursday that includes cutting 8,700 jobs globally over 30 countries and plowing money into advertising.

Kristine Hinck, a spokeswoman for Pepsi Beverages Co., said the company's operations in the Winston-Salem area would not be affected by the layoffs.

"PepsiCo remains committed to Winston Salem and growing its business in the area," Hinck said.

Pepsi Beverage has a major sales and call-center operation in Winston-Salem. In November 2010, Pepsi Beverage said it would add 195 jobs and spend $7.5 million on renovating local operations over three years, as well as retain 870 jobs.

Pepsi announced its cost-cutting plan as it reported better-than-expected fourth-quarter profit, but it also forecast a decline in adjusted 2012 earnings. Chief executive Indra Nooyi said 2012 will be a "transitional year" as economic uncertainty persists.

Pepsi rival Coca-Cola Co. announced its own cost-cutting program on Tuesday, although Coke did not say it was reducing its workforce. For its part, Pepsi said tough decisions needed to be made because it expects 2012 will be the second year in a row that it will encounter higher-than-average costs for commodities.

Pepsi and many other food and beverage makers raised prices last year to offset the higher costs. But consumers are still cautious about spending in the uncertain economy, so some companies are moving on to Plan B: cost cutting.

Nooyi said the company is cutting about 3 percent of its 300,000 worldwide workforce. She declined to say how many U.S. jobs would be cut but said it would be less than 3 percent of the total U.S. workforce.

PepsiCo plans to increase advertising and marketing behind its brands by $500 million to $600 million in 2012, with a particular focus on North America. It also plans to invest $100 million on in store racks, displays and coolers. Additionally, it plans to increase dividends and share buybacks in 2012 to return cash to shareholders.

From staff and wire reports

Brew Nerds on Fourth shuts for remodeling

Brew Nerds at 305 W. Fourth St. in the Chatham Building is closed for remodeling, according to a sign on the door.

The coffee shop's windows are covered with brown paper. The owner and landlord of the building could not be reached for comment.

But the Brew Nerds location at 1620 Fox Trot Court off Hanes Mall Boulevard has a sign posted that reads, "This location is permanently closed." There are also several "permanently closed" signs up at its nearby sister restaurant, Kernel Kustard.

Kernel Kustard's downtown Winston-Salem location on Fourth Street in the Nissan Building closed last fall.

DJ McKie, a former Krispy Kreme Doughnuts Inc. executive, and his wife, Jennifer, opened their original Kernel Kustard, a quick-casual restaurant, and Brew Nerds coffee shop off Hanes Mall Boulevard at Shoppes on Little Creek in late 2007.

Fran Daniel

Furniture Brands reports fourth-quarter loss

Furniture Brands International Inc. said Thursday that it had a $9.5 million loss in the fourth quarter compared with a $44.7 million loss in the fourth quarter of 2010.

Sales were down 7 percent to $255.5 million. For the year, it had sales of $1.1 billion, down 5 percent.

For the full year, it had a loss of $43.7 million compared with a loss of $39 million in fiscal 2010.

Ralph Scozzafava, the company's chairman and chief executive, said the company expects to make progress toward profitability in 2012, based on improving its manufacturing operations and balancing its cost structure with consumer demand.

Furniture Brands is the parent company of three N.C. furniture manufacturers and marketers: Broyhill Furniture Industries Inc., HDM Furniture Industries Inc. and Thomasville Furniture Industries Inc.

In the past 10 years, Furniture Brands has dramatically decreased the manufacturing presence of its three divisions in the Triad and in the state. It has eliminated at least 8,726 jobs in North Carolina, including at least 2,740 in the Triad, according to data compiled by the N.C. Division of Employment Security.

Richard Craver

College admission test firm, S.C. team up

A company known for its college admission test is entering a partnership with South Carolina to match unemployed workers with the businesses who need them, Gov. Nikki Haley said Thursday.

Haley said South Carolina is among four states where ACT is launching its Certified Work Ready Communities academy. The state's unemployment agency already uses ACT's work-readiness system for tests, training and certification.

Haley said the new effort will integrate South Carolina's various testing and training programs, while coordinating efforts by various state agencies, including Commerce and the Department of Employment and Workforce. She believes partnering with the nationally respected company will also help with business recruitment.

"This is creating a business plan for workforce training," she said.

South Carolina's unemployment rate was 9.5 percent in December. That's the lowest it's been in three years.

The initiative costs the state nothing, Haley said.

The Associated Press

Mass. golf course uses product of city's Arctic

Arctic Inc., a biotechnology company based in Winston-Salem, said Thursday that its Frostbite product for eliminating summer weeds and crabgrass is being used on the only organic U.S. golf course.

Jeff Carlson, golf superintendent of the Vineyard Golf Club in Martha's Vineyard, Mass., discussed the Frostbite product at the Western Canada Turfgrass Association's annual conference.

The golf course is not permitted to use pesticides or synthetic chemical treatments of any kind for maintenance.

Gina Stewart, chief executive of Arctic, said the product "essentially puts a killing frost in a bottle." She said it works at over 85 degrees, it is nontoxic and there is no residue to go into watersheds.

"We believe this product is appropriate for use in lawn maintenance, for golf courses and organic farming operations such as vineyards," Stewart said.

Information is available at www.frostkills.com.

Richard Craver