US soft drinks and snack company PepsiCo's acquisition of Quaker Oats has brought cost savings of $400m, up from the $239m initially predicted. PepsiCo told analysts it would make the increased savings through lower purchasing costs as it exploited synergies between Quaker and Pepsi. Revenue growth of the new look company is expected to be 7% in 2002. PepsiCo told analysts that its prediction for annual profits growth of between 13 % ­ 14% remained accurate as spending on new growth initiatives would temper the figure. PepsiCo is looking to expand its convenience food activities through the acquistion. {{NEWS }}

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