PepsiCo to invest $3 bln in Mexico, backs view

* PepsiCo investing up to $3 billion in Mexico

* Repeats FY 2008 EPS view $3.67-$3.68 ex-items

* Shares down 3.5 percent

(Adds Mexico investment, comment, previous NEW YORK)

By Lisa Baertlein

LOS ANGELES (Reuters) - PepsiCo Inc (PEP.N) will invest up to $3 billion in Mexico over the next few years to grow its Sabritas and Gamesa foods business and its beverage brands, the company said on Thursday.

Earlier in the day, the company stood by its full-year 2008 earnings outlook and outlined marketing and product plans for its North American beverage unit, where it faces weaker soft drink sales.

PepsiCo said about $2 billion of the Mexico investment will be used to pay for research and development, manufacturing, distribution, marketing and advertising for its food businesses in the Mexican marketplace over the next five years.

Part of the money will be used to introduce some of those food brands to the U.S. market.