PepsiCo yesterday announced that it expects its profit growth to slow in 2011 due to higher commodity costs, “difficult” conditions in developed countries and investment in emerging markets.

The US snacks and soft drinks giant grew its core earnings per share – earnings excluding one-time charges – by 12 per cent on a constant-currency basis in 2010, hitting its target of 11-12 per cent growth.

However, the Quaker cereal and Walkers crisps maker, is targeting growth of 7-8 per cent in 2011, slower than that achieved in 2010. It cited “high global commodity cost inflation, difficult macroeconomic conditions in developed markets and ongoing strategic investments in emerging markets and in brand-building activities” for its lower growth target.

PepsiCo recorded a 6 per cent increase in full-year profits for 2010, driven by gains from its global snacks and beverage businesses and the acquisition of its bottlers in early 2010.