PepsiCo, the American soft drinks group, saw second quarter profit increase 18% on the back of strong snack and beverage sales in emerging markets and acquisitions, but was cautious about its outlook for the rest of the year due to challenging conditions in developed markets and higher commodity costs. The company saw profit for the quarter rise to $1.9bn from $1.6bn the previous year, with overall revenue up 14% to $16.8bn, driven by snacks sales, which grew 10%. The group reported robust growth, especially in emerging markets, with snack and beverage volume both up by double-digit percentage points in markets like China, India and Turkey. In Europe, volumes increased 5% across both snacks and beverages, which excluded the impact of the acquisition of Russian juice and dairy company Wimm-Bill-Dann for $3.8 billion. It said that organic beverage volume growth was balanced between Eastern and Western Europe driven by Poland, Turkey, Germany and France. However, the company said that performance across its North America beverage business came under particular pressure during the quarter, with volume down 1% as competition with rival Coca-Cola Co intensified. “Our global portfolio in both snacks and beverages is growing volume and net revenue, our global snacks portfolio, in particular, posted another strong quarter with balanced top- and bottom-line growth, and we continue to enjoy robust top-line growth in key emerging markets,” said PepsiCo Chairman and CEO Indra Nooyi. “While we are satisfied with the performance of our portfolio overall, the consumer in developed markets continues to be stressed, and the competitive environment in North America beverages has been particularly challenging. We are therefore implementing previously announced incremental pricing actions in the third quarter to more fully cover input costs while continuing to support our brand-building initiatives. We remain confident in our ability to continue to profitably grow our overall business, even in this uncertain economic environment.”