Coca-Cola (KO) is having one of those great days when its stock is up over a buck. At the time of this writing, shares were higher by $1.08 to $65. I don't know how statistically common or uncommon such a move is, but I know I'm always surprised and delighted when I see strength like that (obviously, I hold the beverage giant in my portfolio).

So, what's moving the stock? According to TheStreet.com, the company decided to purchase all of Honest Tea; Coke previously retained a minority position in the entity.

Coca Cola's (NYSE: KO) strategy of acquiring premium non-carbonated beverage brands like Glacéau Vitamin Water appears poised to continue, with the company reportedly in advanced talks to acquire Honest Tea.

The eight year-old Bethesda, Maryland company has about $13.5 million in annual sales, and Coke is hoping that that number can grow as more healthful beverages take market share away from soda.

CNN Money quotes Beverage Digest editor John Sicher as saying that, "Honest is a very small brand, but has attracted attention due to its organic positioning. Linking up would be a positive for Coke."

Coke's strategy of using acquisitions to fight the decline in soft drink sales appears to be working, with sales expected to increase in the high single digits due to changes in the company's product mix. Look for Coke to continue making acquisitions like this one as it seeks to build stronger competitors for PepsiCo's (NYSE: PEP) Propel Fitness Water and Sobe brands.

MAJOR PAPERS:

• According to the Wall Street Journal, Freedom Communications has delayed its $500M plan to buy back the 45% stake held by The Blackstone Group LP (NYSE: BX) and Providence Equity Partners; people familiar situation said the delay is due to the credit market turmoil.
• The Wall Street Journal also reported due to credit market turmoil that reduced expected financing, Intel Corporation (NASDAQ: INTC) and STMicroelectronics NV (NYSE: STM) will receive less money for memory-chip operations under a new joint venture.
• Apple Inc (NASDAQ: AAPL) signed a deal with 20th Century Fox, a studio owned by News Corp (NYSE: NWS.A), for a new online video-on-demand service, the Financial Times reported. By downloading a digital copy from iTunes, under the agreement, consumers will be able to rent Fox releases as they come out on DVD.

OTHER PAPERS:

• The Atlanta Business Chronicle reported that The Coca-Cola Company (NYSE: KO) may look to buy organic tea-maker Honest Tea.