The maker of soft drinks, Frito—Lay snacks and Quaker cereal also cut its 2011 earnings forecast. Shares fell nearly three percent in premarket trading.

PepsiCo Inc.’s fourth—quarter net income fell five percent because of higher costs, despite a surge in revenue due to acquiring its bottlers.

The maker of soft drinks, Frito—Lay snacks and Quaker cereal also cut its 2011 earnings forecast. Shares fell nearly three percent in premarket trading.

Net income fell to $1.37 billion, or 85 cents per share, matching analyst expectations, according to FactSet. That’s down from $1.43 billion, or 90 cents per share, last year.

Revenue rose 37 percent to $18.16 billion, helped by acquiring its two biggest bottlers. PepsiCo sold nine percent more of its products.

CEO Indra Nooyi sounded a cautious note for 2011. She says consumers remain pressured by high unemployment and costs for raw materials are expected to remain high. Competition, especially with rival Coca—Cola Co., remains stiff, and Pepsi’s numbers suggest Coke is taking business.

Still, the company expects buying its bottlers and its $3.8 billion acquisition of Russian food company Wimm—Bill—Dann Foods will help results.

Pepsi now expects earnings per share growth of seven to eight percent. It previously forecast growth of 10 percent to 11 percent.

Pepsi’s Frito—Lay snack division volume rose slightly. PepsiCo Americas Beverages volume rose one percent.

For the full year, net income rose six percent to $6.32 billion, or $3.91 per share, from $5.95 billion, or $3.77 per share last year.

Revenue rose 34 percent to $57.84 billion from $43.23 billion a year ago.

Rival Coca—Cola Co. said on Wednesday fourth—quarter net income more than tripled on the acquisition of a bottler and stronger sales of its drinks worldwide.

Shares fell $1.62, or 2.5 percent, to $62.80 during midday trading.