PepsiCo (NYSE: PEP) reported third-quarter data earlier today. The beverage company that despises Coca-Cola (NYSE: KO) with a passion called its numbers solid. I would tend to agree. The tables presented in the release won't go down in the history books, but for long-term shareholders, they were fine enough considering the economy.

Net revenue decreased 1.5%. Earnings per share on an adjusted basis increased 2% to $1.08. This bottom-line result is representative of a nice beat against the analysts. They were projecting $1.02 per share for profit, according to Elizabeth Harrow's preview of the quarter.

As a Coca-Cola (NYSE: KO) shareholder, I was quite unnerved by recent talk centering on the issue of a soda tax. I'm sure PepsiCo (NYSE: PEP) shareholders were likewise frightened. According to Bloomberg, President Barack Obama is apparently open to the concept. In theory, funds generated from such a tax could be used to help defray the costs associated with a new health-care paradigm.

Besides raising money, what would be the justification behind such a governmental strategy? Well, excess sugar consumption can be dangerous. It can lead to all kinds of complications. You know the drill: obesity, diabetes, etc. When health issues like those rise, the cost of health care increases as well.

Dr Pepper Snapple Group (NYSE: DPS) is having one refreshing day so far. At the time of this writing, shares of the beverage entity were up over 5%, with volume being quite strong. Dr Pepper delivered a decent Q2 report that surprised the experts on Wall Street, so the market was happy to extend a little buying interest.

According to the preview, Dr Pepper was supposed to do $1.5 billion on the top line and 49 cents on the bottom line. Net sales roughly matched the estimate, but net income went way beyond the call. Dr Pepper made 62 cents per share on an adjusted basis.

Coca-Cola (NYSE: KO), the main thorn in PepsiCo's (NYSE: PEP) side, will report earnings for the second quarter on Tuesday July 21. Don't expect any profit growth, however. According to Earnings.com, Coke made $1.01 per share in the year-ago period. Analysts believe that the beverage maker will only deliver 89 cents per share tomorrow. That's a pretty steep drop.

But those who own Coke very often hold Coke for the long term, so any earnings release is looked at in a specific context: so long as nothing seems too out of the ordinary with the numbers, the original thesis for buying will be considered intact, and no action will be necessary. In fact, if the market wants to sell Coke off for one reason or another, then it can mean that a buying opportunity has been gifted to those who are indeed keeping shares for a while.

Pepsi Bottling Group (NYSE: PBG), a beverage entity that competes with Coca-Cola (NYSE: KO) and Coca-Cola Enterprises (NYSE: CCE), reported Q2 earnings on Wednesday. Adjusting for a gain related to tax issues, the company earned 78 cents per share.

According to Trey Thoelcke's earnings preview, Pepsi Bottling Group was only supposed to make about 73 cents per share. So, management managed to beat Wall Street's projections. Unfortunately, management made the same amount of per-share profit in the year-ago period, so there wasn't any growth on the bottom line.

Coca-Cola (NYSE: KO), the archrival of PepsiCo (NYSE: PEP), has been acting very bubbly recently in terms of price action. I noticed it had a nice move on Friday. Others have noted the positive price change as well, including this item, which discusses the option activity surrounding Coke and the overall technical position of the stock.

I've been pretty stunned by the rise in price. Usually, the stock is a sleepy thing that doesn't do much. Well, that's probably not entirely true, but if you've held the company in your portfolio as long as I've held it in mine, you know that it seems that way at least. I own Coke for the long-term because I love its dividend-paying characteristics. And I love its brand equity. I'm wondering, though, if Coke might make a good trade at the moment. Or, maybe I should start adding to my position before it takes too sharp a rise.

Coca-Cola (NYSE: KO) reported first-quarter earnings on Tuesday morning. By the end of the day, the main enemy of PepsiCo (NYSE: PEP) was down 2.8% on better-than-average volume. Coke said that it earned 65 cents per share on an adjusted basis. According to Beth Gaston Moon's earnings preview, management met Wall Street's expectations.

So, right off the bat, you can see why the market wasn't so kind to Coke's shares. Meeting expectations isn't enough sometimes. But there are some other issues here, too.

Revenue was kind of soft, and a look at the statement of cash flows shows a decrease in money generated from operations. That number decreased over 20% to roughly $870 million.

PepsiCo (NYSE: PEP), which competes with Coca-Cola (NYSE: KO) for worldwide supremacy of carbonated sugar water, is set to report earnings for the third quarter on Tuesday, October 14. What kind of growth are we looking at?

Well, according to Earnings.com, we're looking at roughly 10% appreciation for the bottom line. That is, of course, if analyst expectations are met. The call is for $1.08 per share. While 10% isn't stunning growth in some respects, it's a solid amount for a mature consumer company such as PepsiCo, and it's going to look attractive to investors searching for safe havens in the economic tempest. That's a given. However, with a beverage company, earnings aren't the only thing that matters, that I can promise you. More telling will be the case-volume metric. Wall Street always studies case-volume growth, and if that is weak, then the stock could see some pressure. I own shares of Coke, and I can tell you that I follow case volume closely. With a global slowdown going on, I'd have to imagine that PepsiCo's case-volume performance won't be the best it's ever reported. The other thing I follow with Coke is the cash-flow characteristics. Investors will want to see how free cash flow is faring with PepsiCo. A strong cash-flow statement would also be indicative of how resilient PepsiCo's stock might be over the coming months. If a lot of cash is coming in, then management will have more flexibility with share buybacks, although I'm sure managements everywhere are becoming conservative on that count, for obvious reasons.

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.