But "PepsiCo isn't on the road to Splitsville any time soon," said IBISWorld beverage analyst Agata Kaczanowska. Its "dual portfolio
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) (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. "
Fortune Brands ( FO), the maker of spirits such as Maker's Mark bourbon whiskey, Jim Beam and Effen Vodka, golf products under the Titleist brand, and home products like Moen faucets, said in December it would split itself into three separate companies. Its plan was to spin off its home and security division to shareholders in a tax-free transaction, sell or spin off its golf products business, and continue as a public liquor company. Fortune expects the separation process to be complete in the second half of this year. Any type of Pepsi split would be more likely along the division of snacks and beverages, "and that doesn't make sense given Pepsi's long-term investments," Kaczanowska said. Still, speculation of a split circulated following these other major split announcements, overall market uncertainties and increasing commodity prices. Kaczanowska believes that Pepsi is "poised to handle the increases in raw materials prices as it continues to grow in emerging markets," she added."The flexibility that diversified Pepsi's portfolio would be really compromised if it spun off ones of its divisions." -- Written by Miriam Marcus Reimer in New York. >To contact the writer of this article, click here: Miriam Reimer. >To follow the writer on Twitter, go to @miriamsmarket. >To submit a news tip, send an email to: email@example.com.
>>See our new stock quote page.