Speculation that PepsiCo (PEP - Get Report) may be headed for a separation of its drinks and snacks businesses may be just that. On the heels of Kraft Foods (KFT) and Sara Lee's (SLE) moves to slim down for profits by spinning off parts of their businesses, some analysts wondered if PepsiCo might do well to take similar action.
Kaczanowska pointed out that "in the US Soda Production industry the company has a 33.6% market share. It is second behind Coca-Cola (KO) (41.2%) and is facing increasing competition from private labels and Dr. Pepper Snapple (DPS) (15.4%) ... Comparatively, Frito-Lay has a 48.4% market share in the Snack Food Production industry, with Kraft and General Mills (GIS) far behind with just 5.2% and 5.1% market share, respectively. "