With Indra Nooyi, stepping down as the chief executive officer of PepsiCo, bankers, analysts have taken interest in the splitting up of company’s snack and beverage business, as the latter is facing trouble with declining revenues, reported CNBC

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Pepsi's beverage business, which includes Gatorade and its namesake cola, last quarter dropped one percent, an improvement over a two percent fall the previous quarter, hurt by declining revenue and smaller upstart brands eating into the market share of its non-cola drinks.

Its Frito-Lay snack business, by contrast, last quarter grew four percent, up from three percent growth the prior quarter, the report added.

Under the leadership of Nooyi, the company had contended that owing both the hands of the business will help create a formidable opportunity to cross promote the brand. However, Pepsi has failed to achieve the same, CNBC said.

Furthermore, if the company decides to split its food and beverage business, under the new leadership of Ramon Laguarta, it can create a singularly focused drink business like that of cola giant, Coca Cola.

First Published:Aug 7, 2018 2:22 PM IST