But "PepsiCo isn't on the road to Splitsville any time soon," said IBISWorld beverage analyst Agata Kaczanowska. Its "dual portfolio [of snacks and beverages] allows PepsiCo pricing flexibility in its highly competitive beverages business because it is balanced out by a strong market position in the snacks business." Pepsi CEO Indra Nooyi has commented that the company's Frito-Lay operations could thrive as an independently run company, but has also said that marketing and distribution synergies for its dual snacks-beverages portfolio are too beneficial for the company to break the two up.
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 - Get Report) (41.2%) and is facing increasing competition from private labels and Dr. Pepper Snapple (DPS - Get Report) (15.4%) ... Comparatively, Frito-Lay has a 48.4% market share in the Snack Food Production industry, with Kraft and General Mills (GIS - Get Report) far behind with just 5.2% and 5.1% market share, respectively. "