The shares of Coca-Cola (KO), first discussed here on February 20, 2009, at a price of $42.68, have powered through psychological resistance at $60, and it you're in near $43, now may be a good time to consider taking some profits with KO.

However, other investors who can tolerate the risk can maintain their full position in KO, but keep in mind the journey to $80 may not be completed in 2011.

The U.S. economy remains in a pronounced recession. So far, there's little to suggest that job market and household formation trends -- two tell-tale stats regarding prospects for a resumption of both revenue and earnings growth -- have bottomed.

Still, to illustrate an alternate take on the state-of-things economic, not a day goes by in which a colleague, relative or friend does not remark on the low valuations of some the nation's best companies. Observations like 'XYZ Company is selling for $11, it has to be a buy' or 'Something Corporation is down to $4; an empty shoe box is worth $4!' are often expressed.

Given today's choppy, consolidating markets, if your portfolio does not contain a consumer products defensive stock, consider adding PepsiCo (NYSE: PEP).

Pepsi has all the ingredients for a reasonably safe consumer play: a leading primary brand, product diversification, established market positions, a wide geographical footprint, marketing savvy, and cost discipline.

Pepsi has a large snack operation, but the major business model here is, of course, beverages, led by Pepsi Cola, which vies with Coke (NYSE: KO) for global cola supremacy. Operating in about 200 countries, look for PEP international market share to increase in 2007-2009. The company is also well-positioned in the juice and non-carbonated drink segments, which are also expected to perform well, moving forward. Rising commodity costs may pressure margins, but PEP does have modest pricing power as a response. Superior marketing adds to an impressive corporate operation: Pepsi frequently responds to rival Coke's new marketing efforts with something more trendy and cool, particularly as interpreted by teens and younger adults.

Technically, PEP's chart looks good. Aside from the August 2007 market sell-off, PEP's stock has danced with its 50-day moving average on three occasions in 2007, but the chart otherwise displays a healthy advance, minor correction pattern. PEP's chart has also cleared resistance at $70. Equally important, PEP has been above its 200-day moving average -- the toughest average to break -- for about three years. The P/E of 19 is not cheap, but it's reasonable given the company's growth prospects.

Stock Analysis: PEP is a low-risk stock. If you don't already own a consumer products stock as a defensive, consider adding PEP to your portfolio. Investors with an investment horizon longer than 1 year should be rewarded from PEP's shares. Sell / Stop Loss: $53.

PepsiCo's (NYSE: PEP) Gatorade brand has been struggling (WSJ subscription required) of late with competition from alternatives including Coca Cola's (NYSE: KO) Vitamin Water, a lower calorie, perhaps more-nutritious beverage. With the added pressure of aggressive pricing from Powerade, sales of Gatorade were down 2% in the last quarter, a sharp drop from the 29% increase in the prior year's quarter.

While PepsiCo expects Gatorade to rebound somewhat, its best days are probably behind it. People are realizing they just don't need that many calories in a drink, and Vitamin Water tastes just as good anyway.

The future of the Gatorade brand may very well rest squarely on the shoulders of G2, the company's soon-to-be launched lower-calorie alternative sports drink. Given the strength of the Gatorade brand, I like the company's chances with G2, and Coke may need to start worrying.

Looks like it did not take long before one of the states, Connecticut, attempted to challenge Coca-Cola Company (NYSE:KO) over claims that its "Enviga" beverage can actually burn calories by ingesting it. That's right -- unlike most soft drinks that actually add a pretty large calorie load to the person drinking it, Enviga contains some natural ingredients that are connected to burning calories. This comes with no physical effort, according to Coca-Cola, although physical effort is the tried-and-true method of calorie burning.

Connecticut's Attorney General, Richard Blumenthal, stated today that his office has begun an investigation into claims by Coca-Cola and Nestle that Enviga can actually burn calories. What are these "magic bullet" ingredients? Well, some of them are green tea and a green tea extract known as epigallocatechin gallate, or EGCG.

Coke's claim of Enviga "burning calories" is based on the claim from Coke that EGCG speeds up metabolism and increases energy use. So, apparently by pseudo-connection, anything containing that component must burn calories. Umm, I don't think that would pass scrutiny, but without anything from the FDA that I know of, authorities in Connecticut are stepping up to the plate here by demanding copies of all scientific studies, clinical trials, tests and papers that prove the calorie-burning claim by next week.