In 2011, PepsiCo announced the “Power of One” Strategy.

It means selling “Food & Snacks” and ” Beverages” under One Big Umbrella “PepsiCo.”
PepsiCo believes that both the divisions “Food & Snacks” and “Beverages” are complementary to each other and go hand in hand. Consumers purchase/ consume both (salty) snacks and (sweet) drinks together.

Later, the One Strategy was challenged in 2013.

When Peltz Trian Fund Management (an investment firm) recommended PepsiCo to split “Food & Snacks” and “Beverage” division into two separate companies.

At that time, Trian Fund owned about $1.3 Billion of PepsiCo shares, which made them one of the largest PepsiCo’s shareholders.

Trian Fund believed that PepsiCo will always remain (#2) in the Cola business, but with this split, PepsiCo can at least gain a leadership (# 1) position in snack business in terms of market share, growth, etc. According to Trian, PepsiCo was struggling in managing both “fundamentally different” businesses.

However, after careful consideration, PepsiCo’s Board of directors rejected Trian’s proposal and continued with One strategy.

If you are interested in learning more about the Trian Fund proposal, here is a link to a white paper.
https://trianpartners.com/content/uploads/2017/01/TRIAN-WHITE-PAPER-PepsiCo.pdf

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Snack brands are Frito Lays, Cheetos, Doritos, Kurkure etc.
Beverage brands are Pepsi, Mirinda, Mountain Dew, Gatorade, Tropicana etc.