Investment bank UBS has lowered its rating on PepsiCo and Pepsi Bottling group, partly on fears that rival Coca-Cola is increasing its marketing efforts.

Both stocks were reduced fro "Buy" to "neutral".

UBS also warned that increasing energy costs could affect earnings.

"While PepsiCo should continue to deliver some of the strongest EPS growth rates within consumer staples, we believe upside from the current consensus EPS estimates is limited," UBS said in a research note.

PepsiCo's earnings per share estimates were lowered to US$2.58 from US$2.61 by UBS, which also cut its price target on the stock to US$61.00 from US$66.50.

Meanwhile, UBS said Pepsi Bottling Group may have to increase its marketing activity in the face of a more aggressive Coca-Cola and Coca-Cola Enterprises partnership.

PBG's EPS estimates were lowered to US$1.83 from US$1.84 for this year.