The war between Coca-Cola (NYSE: KO) and PepsiCo (NYSE: PEP) is becoming as fierce as the fight between the two monsters in the classic Japanese flick War of the Gargantuas (don't tell me you don't remember that one!).

This time, the conflict is over the duo's respective sports drinks. According to Bloomberg, PepsiCo believes that Coke has been promoting its Powerade beverage by issuing false claims against PepsiCo's Gatorade.

The cola wars between Coca-Cola (NYSE: KO) and Pepsi (NYSE: PEP) that consisted of a high-profile battle for carbonated supremacy are quiet for now and, according to some experts, it's hurting the industry.

Some industry experts predict that soda sales will decline 1% per year for the next ten years. The accuracy of such a forward-looking prediction aside, it puts a lot of pressure on the soda companies.

Coke responded with its high-profile acquisition of Glaceau, the maker of VitaminWater, and Pepsi is preparing the launch of Tava, "An Inspired Sparkling Beverage" promising "Zero Calories. Zero Caffeine. Zero Worries." The packaging looks slick and the flavors -- Tahitian Tamure, Mediterranean Fiesta, and Brazilian Samba -- certainly sound enticing. The product will launch in the first half of 2008, but Pepsi investors should be wary of putting too much faith in it. A large percentage of new beverages fail to catch on with consumers -- Remember Crystal Pepsi, Pepsi Blue, and New Coke?

Maybe they'll be able to compensate for the decline in categories like energy drinks and vitamin-enhanced water -- but investing in Coca-Cola when you think Coke is headed for a long decline seems silly -- especially given that the stock hit a multi-year high on Friday.

With the decline -- and expected continuation of the decline -- in soft drink sales, you also have to wonder about Jones Soda's (NASDAQ: JSDA) prospects. The company has its own serious internal problems, and trying to make a comeback in a declining industry could prove too much for it to handle.

Perhaps big new marketing campaigns and a rebirth of the cola wars can help brighten soda's prospects -- but if the decline is caused by factors like increasing health-consciousness and a preference for noncarbonated drinks, it might just be a big waste of money.

This post is part of our Battle of the Brands feature. Let us know which brand you prefer, and watch out for more Battle of the Brands posts.

Some people drink Pepsi, some people drink Coke,
The wacky morning DJ says democracy's a joke.
-- Cake, Comfort Eagle

Unless you are a rare RC Cola drinker, your carbonated beverage decision in the supermarket comes down to the two heavyweights: the flagship products from the Coca-Cola Company (NYSE: KO) and PepsiCo Inc (NYSE: PEP). But the battle between these brands spans much further than the supermarket shelves. From which brand restaurants stock, to what countries each operates in, this rivalry is all-encompassing and global. But instead of a list of countries or restaurant chains, lets take a deeper look at the actual products.

Cola and Beyond

We don't have space to list, nor would you have time to read, every different variant of Coca-Cola and Pepsi, which would force me to include failed ideas such as Crystal Pepsi. Suffice it to say, you won't find many original ideas here, and when a successful idea comes from either company, an imitator just as quickly appears from the other. Coke/Pepsi, Diet Coke/Diet Pepsi, Cherry Coke/Wild Cherry Pepsi, Coke with Lime/Pepsi Lime, Coke Zero/Pepsi One, Coca-Cola Blak/Pepsi Cappuccino. Had enough yet? Because that was just a list of comparable colas. Both companies also make lemon-lime sodas, orange sodas, and other similar carbonated and noncarbonated beverages. So then what differentiates them? Certainly not their product arsenal, but taste and marketing.

PepsiCo. Inc. (NYSE:PEP) is encroaching on Coca-Cola Co.'s (NYSE:KO) turf at McDonald's Corp. (NYSE:MCD).

Some McDonald's restaurants are selling Pepsi's Gatorade, Propel Fitness Water, Lipton Iced Tea, Tropicana orange juice, and Mountain Dew, according to the Associated Press. McDonald's had sold Coke's products exclusively since 1955, the AP said.

This is obviously a huge win for Pepsi. Demand for non-carbonated beverages is rising at a much faster pace than soda. It's the latest front in the cola wars. This will certainly help Pepsi over the long term.

Investors, though, continue to bet on Coke. Its shares have jumped 12 percent this year compared with 5 percent for Pepsi. Going forward, it's a different story.

Fourteen out of 16 analysts rate Pepsi shares either a buy or a strong buy. Two rate it a hold. Their median price target is $73 about $10 above were it currently trades.

Analysts are expecting on average for Coke to hit $53 in the next year, about $5 above its current price. Twelve out of 17 analysts rate Coke either a buy or strong buy and five consider it a hold.

Coca-Cola Co.'s (NYSE:KO) plans to disclose the caffeine levels in all of its products is a boon to consumers like myself who want to make sure that they aren't missing out.

I am not sure that life as we know can exist without caffeine. I know mine couldn't. My wife and I have a five-month-old son Jacob and as you can imagine sleep is a luxury. I doubt my posts would even be remotely coherent without my daily dose of coffee and my afternoon Coke Zero.

Caffeine may become the new front in the cola wars.

Pepsico Inc. (NYSE:PEP) plans to introduce a new a new version of Diet Pepsi with more caffeine called Diet Pepsi Max and I can't wait to try it out even though I am out of the target demographic of consumers 25-34.

I can't imagine how Coke will respond.

"Extreme Diet Coke?" "Diet Coke Hardcore?"

The possibilities are endless and I will sample them all.

Things may have slowed down a bit in the quarterly earnings reports that we've been asking you, Blogging Stocks readers, to make your predictions about, but it hasn't done anything to dampen your optimism.

On Cisco Systems (NASDAQ:CSCO), 80% of you thought earnings would beat expectations.

On Disney Co. (NYSE:DIS), 65% of you thought earnings would beat expectations.

On Pepsico Inc. (NYSE:PEP), 87% of you thought earnings would beat expectations.

On Coca-Cola Co. (NYSE:KO), 67% of you thought earnings would beat expectations.

And your optimism was warranted in all cases except for Pepsico, whose earnings were in line with analysts' expectations. Only 10% of you voted for Pepsi to meet expectations.

So add one for Coke in the cola wars, and give yourselves a big pat on the back for outsmarting Wall Street three times out of four.

Earnings reports for Home Depot (NYSE:HD), Whole Foods Market (NYSE:WFMI), Viacom Inc. (NYSE:VIA) and others are coming up soon. Let us know what you're expecting.