Jim Cramer is watching PepsiCo (PEP) and its snack business Frito Lay. 'I want Pepsico to address the idea that maybe soda is just a permanently declining business,' said Cramer, ahead of the company earnings on Tuesday. However, the saving grace may be snack company Frito Lay, which has helped PepsiCo side step the issue of declining soda sales that is battering Coca Cola (KO). The sale of salty chip brands that include Doritos and Ruffles makes up around half of PepsoCo's annual revenue. Analysts are predicting earnings of $1.27 a share and $16.22 billion in revenue, down from $1.36 a share and $17.22 billion for the same period last year. PepsiCo is planning to buy back around $12 billion worth of shares in the coming three years, meaning more cash back to shareholders. As part of its attempt to further diversify, the drinks giant has recently announced a partnership with Starbucks (SBUX) to market and sell ready to drink coffee beverages in Latin America starting in 2016. Despite health concerns over PepsiCo products, the food and beverage manufacturer has been making an effort to embrace green business practices, generating $373 million in cost savings according to the company’s annual sustainability report. Improved water efficiency has played a large part in this year's savings, as have efforts to reduce energy consumption and cut down on packaging inefficiency.