Pepsi Bottling Group expects to be able to match any rise in marketing activity from the Coca-Cola network.

PBG chairman and CEO John Cahill was quoted yesterday by Dow Jones saying: "We feel very, very comfortable with the level of activity and the level of support that is provided (by PepsiCo) as it relates to making sure we are collectively competitive in the marketplace."

Analysts believe Coke has been upping the levels of aggression, increasing its marketing spend and introducing a number of new products.

Cahill added that he did not see a deterioration of the pricing environment in "any significant way" in the second half of this year.