PepsiCo ( PEP) recently reported earnings for the second quarter of 2010. The company posted stellar growth in its beverage business revenues, driven by the Aug. 2009 acquisition of its two largest bottlers, Pepsi Bottling Group and PepsiAmericas. PepsiCo competes with Coca-Cola ( KO) and others in the non-alcoholic beverage business.PepsiCo's snacks and beverages businesses also saw high growth in developing economies, while growth for the Quaker brand was subdued. Based on the above trends, we have updated our price estimate for PepsiCo's stock from $65.49 to $67.28. Although rising beverage revenue is certainly good news, there's a risk that integrating the less-profitable bottling business could erode Pepsico's gross margins. Our analysis follows below.