It is because Coke relies on Beverage growth while Pepsi is thriving off Frito and global expansion. Only way for Coke to grow is to invest in other businesses that can utilize it's strong distribution systems. Nelson Peltz is trying to get Pepsi to split off Beverage and snack because he sees the huge growth potential in Snacks. He also wanted Pepsi to buy Mondelez, a huge Snacks player. Coke should be buying Mondelez and crushing Pepsi in global distribution along with its beverages. They would own the stores and kiosks in the small 3rd world countries and as they grow from traditional to modern trade.