The Coca-Cola Company (NYSE: KO) is, as Zac Bissonnette recently discussed, in the process of trying to purchase juice-maker China Huiyuan Juice Group. He was a bit skeptical about this deal, wondering if it will truly add value to Coke's operations. I have to admit, when I heard about this $2.5 billion bid, I wasn't overly excited. I thought to myself, will this multibillion-dollar potential transaction be as exciting as the Glaceau purchase (Glaceau, of course, gave Coke access to the wonderful Vitamin Water brand)? Billions here and billions there do add up, and one has to make sure that such acquisitions do not screw too badly with things like share repurchases and dividends.

Now comes word from the DealBook blog over at The New York Times that the transaction has a legal hurdle to go through. It doesn't seem to give odds on the possibility of approval, but it says that this will be the first case presented under a new antitrust law put into effect by China a little over a month ago. Traders have sent shares of China Huiyuan Juice Group lower under speculation that the transaction is not a sure bet.

As a shareholder of Coke, I do have mixed feelings, but I have to say that I understand where management is coming from. Coke wants to grow, and China is definitely a country that big brands in America need to exploit. And juice categories are expanding as consumers step away from carbonated beverages in search of a healthier drink experience. Consider that arch rival PepsiCo, Inc. (NYSE: PEP) is looking at deals around the world all the time. Coke obviously wants to pick its spots carefully and see where it can do a transaction that makes sense before its number-one competitor does the same.

Pepsi Bottling Group (NYSE: PBG) issued its Q2 earnings numbers today, and the market apparently wasn't impressed. As of 2:45, the shares are off well over 4%.

The numbers weren't bad in some respects, but a couple areas weren't encouraging. Sales increased about 5%, and earnings per diluted share expanded by 12% to $0.78. That was more than enough to beat the analysts, who were looking for about $0.75 per share, according to Briefing.com. However, worldwide case volume declined 3%. Case volume is one of the most important metrics for a beverage company, so this is very disheartening. Also, cash from operations dropped to $89 million for the six-month period from a year-ago level of $158 million. There was no free cash flow, but management does expect positive free cash flow for the fiscal year.

Considering the bottler's forward guidance and dividend yield, the shares are somewhat cheap. But they are basically at a 52-week low in a bad market, so I wouldn't bother with them. When it comes to investing in the beverage sector, I prefer owning a PepsiCo (NYSE: PEP) or a Coca-Cola (NYSE: KO). In fact, I own the latter. Avoiding bottlers like Pepsi Bottling Group and Coca-Cola Enterprises (NYSE: CCE) makes sense for the long-term since the bottlers will always have greater exposure to capital-expenditure requirements.

Disclosure: I own Coke; positions can change at any time.

PepsiCo (NYSE: PEP), major rival of Coca-Cola (NYSE: KO), is letting the investing world know that it's doing fine. In one of the shortest press releases I've ever read, management at the beverage maker let shareholders in on the fact that it intends to reiterate guidance at The Deutsche Bank Global Consumer and Food Retail Conference that takes place next week in Paris. PepsiCo believes it's still good for $3.72 per share in earnings for the fiscal year.

When the world seems to be heading for the dark pits of economic hell, it's nice to know that PepsiCo expects to be able to stay the course and deliver on an earlier forecast. After all, with all this talk of inflation, one would have to wonder how companies like PepsiCo and Coke can possibly remain stable given the difficult input-cost environment. The big question on my mind is how high these two companies might rise during the summer, since they are considered defensive plays. They didn't seem defensive at all on Wednesday during the Dow's 200-point bleed, but my gut is telling me they might be good short-term plays.

They certainly are excellent long-term plays, and while I own Coke, I'll concede that right now, in terms of P/E ratios and dividend yields, an investor wouldn't go wrong with either. And, yes, I'll further concede that one gets an added bonus with PepsiCo since it owns the strong Frito-Lay salty-snack business. But with both stocks down over the last six months (As of this writing, PepsiCo is down more than 11% for the six-month period while Coke is down more than 9%), and with problems in the markets, they might be interesting ideas right now. Again, though, the effect of input costs must be part of your due diligence before buying.

Disclosure: I own shares of Coke; positions can change at any time.

According to an article on Reuters, Coca-Cola (NYSE: KO) is feeling the pressures of the flat domestic marketplace. COO Muhtar Kent, who will soon become the CEO, said in comments at a speaking event in Japan that Coke will be evaluating an acquisition strategy to grow the long-term prospects of its beverage business.

Now, this doesn't mean that a large purchase or merger is on the horizon, but it does mean that shareholders can expect, according to Kent, small, targeted asset buys. He did, however, specifically state that the company isn't giving up on organic growth, either, in its quest to expand its presence in beverages and beat back the ongoing threat of enemy number one, PepsiCo (NYSE: PEP).

He better not be giving up on it. Coke's stock recently retreated from its 52-week high of $65.59 to a price, as of noon today, of $56.37. The stock has done well over the last year, and this could be considered a normal consolidation. However, there has been a lot of buzz lately about Coke's domestic weakness.

Beer giants SABMiller (OTC: SBMRY) and Molson Coors (NYSE: TAP) took a huge step toward grabbing market share in North America by announcing today their intention to combine U.S. operations into a new company, MillerCoors. The new entity will start with combined U.S. sales of of 69 million barrels of suds, net revenues around $6.6 billion and combined EBITDA of $842 million. The companies expect combined production and distribution to lop off around $500 million from the annual expense side within three years. SAB and TAP also expect the move to boost both companies' EPS within the second year after integration is complete.

Voting interest in MillerCoors will be split 50/50, and the new company will be chaired by Peter Coors of Molson Coors. SABMiller, the larger of the two, will have a 58% financial interest.

When the market as a whole drops, as it has of late, individual opportunities open up. Molson Coors Brewing Co. (NYSE: TAP) has been down in the proverbial dumps lately. Since the last week, its shares have dropped more than 9%. The fifth largest brewer in the world is now trading well below its worth, in my opinion, and it is an opportunity to tap.

You are no doubt familiar with many of Molson Coors Brewing Co.'s beers: Coors Light, Molson Canadian, Carling, Blue Moon, Killian's, Zima, Caffrey's, Worthington's, and Keystone are all under its umbrella. In terms of comparable operating profit, Canada makes up the company's largest operations, at 61%, with America representing 30%, and the U.K. 10%. This is a strong company, and getting stronger. Compared with the last-year's quarter, net sales are up 5.9%, and gross and operating margins both have made excellent gains, increasing to 42.3% and 15.1% respectively.

A Goldman Sachs Global Investment Research report from August 14 points to even more reasons for enthusiasm. On Sept. 6, an investor conference will highlight the potential for its free cash flow to increase from 2008's $7.50 per share to 2009's $8-$9 range per share. The report also expects that management may resume repurchasing shares as free cash flow increases. It's set a 12-month price target of $105. I am just as bullish on this beer stock and would take advantage of its discounted price right now.

Type of Stock: The fifth largest beer brewer in the world.

Price Target: TAP has taken a hit in the market this past week. Currently at $85.51, it is a bargain, in my opinion, one to buy and hold. I think we'll see it head to the $105 level in the next year.

Hilary Kramer is a financial editor and money coach for AOL and an authority on investing. Visit her at www.hilarykramer.com.