Forget the mantra about Pepsi's North American market's beverage and snack revenue being hurt, yada yada.

I'm Reiterating my Buy rating for PepsiCo, Inc. (NYSE: PEP) first recommended on March 13, 2009 at a price of $48.62.

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.

Tiger Woods has been a staple on money lists for over a decade now, so I doubt anyone is unaware of the magnitude of his income. This past year, though, has been a great one even by his standards.

He had an outstanding year on the golf course, with seven tour victories, including a PGA championship and the overall Tour Championship. Along the way, he led the tour with winnings of over $10 million.

This was only the beginning of his cash flow, though. Endorsement money well exceeded his on-course winnings. In addition to his standing affiliations with Nike (NYSE: NKE), General Motors (NYSE: GM) and others, Procter & Gamble's (NYSE: PG) Gillette signed him to a new deal for $10-20 million as part of its "Gillette Champions" campaign. In the fall, PepsiCo's (NYSE: PEP) Gatorade agreed to pay him up to $100 million to license a Tiger Woods brand of sports drink, due out next spring. He also moved forward on his newest venture, golf course design, announcing plans for his first U.S. design, The Cliffs at High Carolina.

Tiger continues to dominate his sport and keep his image positive. Young, vastly talented, and a shrewd businessman, in 2007 he not only drove the green, he raked it in, too.

Be sure to check out more Money Winners of 2007.

PepsiCo Inc. (NYSE: PEP) today reported better-than-expected third quarter results, helped by strong sales of healthy snacks and robust growth overseas.

Net income rose 17% to $1.74 billion, or $1.06 a share, from $1.49 billion, or 89 cents, a year earlier. Sales rose 11 percent to $10.2 billion. Excluding a one-time gain, the Purchase, New York company's results beat Wall Street expectations by 3 cents.

"Our third quarter performance was very strong, with double-digit revenue and operating profit growth," said Indra Nooyi, the company's chairman and chief executive in the earnings release. "All of the Company's operating divisions successfully navigated through an environment of higher input costs in order to deliver balanced top- and bottom-line performance."

PepsiCo reiterated its previous guidance for full year earnings of at least $3.35 per share and slightly rose its cash flow from operations forecast to be at least $7 billion. Capital spending is seen at about $2.6 billion.

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.

Sales of traditional soft drinks (sodas? pops?) haven't exactly been effervescent of late, so beverage giants PepsiCo (NYSE: PEP) and Coca-Cola (NYSE: KO) have recently ramped up their efforts on non-carbonated drinks. Today, Pepsi introduced a low-calorie version of its Gatorade Sports Drink, called "G2."

While the original Gatorade has always been marketed as an electrolyte-rich drink to gulp down during or after workouts, G2 - with 25 calories per eight-ounce serving - is designed to keep calorie-conscious folks hydrated even while they're at rest. G2 will initially come in three flavors - fruit punch, grape, and orange, and a single bottle is expected to run between $1.29 and $1.49.

Pepsi also said it will launch a new addition to its Propel line of "Fitness Water." "Propel Invigorating Water," a vitamin-enhanced offering, will include a mild shot of caffeine and a subtle flavor, totaling 20 calories in each eight-ounce service. The new Propel will come in strawberry, citrus, and berry flavors, and cost 99 cents to $1.59 per bottle.

Pepsi shares are trending modestly lower today, following the example of the downward-spiraling broader market, but the soft-drink firm's long-term trend is an attractive one. Pepsi has been on the rise since early 2003, nearly doubling in value as it hugs the support of its 10-month and 20-month moving averages. If Pepsi continues to pace the trend for "healthier" non-alcoholic beverage offerings, this trend could remain the stock's friend for the foreseeable future.

Beth Gaston Moon is an analyst at Schaeffer's Investment Research.

Here's a good idea: PepsiCo (NYSE: PEP) will be introducing a new, lower-calorie, lower-sugar version of Gatorade for people who aren't breaking a sweat while they drink: office athletes. The announcement comes as the growth of Gatorade sales has been slowing, perhaps as a result of the rising popularity of Vitamin Water, owned by rival Coca Cola (NYSE: KO). .

I wonder what would happen if Gatorade put vitamins in this new Gatorade in an effort to take on Vitamin Water. The strength of the Gatorade brand might give it a shot. While Vitamin Water is the leader in its market, I think it may be too new to have an unassailable competitive advantage.

If Pepsi can put together something to compete with it, Coke's $4 billion acquisition might not look so smart in retrospect.

More Vitamin Water news

Beth Gaston Moon: High school vending machines getting more eclectic
Jonathan Berr: Coke, Pepsi thirst for profits from bottled water
Zac Bissonnette: Experts doubt Snapple will satisfy Coke
Zac Bissonnette: Will Coca-Cola gulp down Snapple?
Joseph Lazzaro: Coke's catching up in the health drink segment
Zac Bissonnette: Coke swallows Vitaminwater
Zac Bissonnette: Coke wants vitamin water
Zac Bissonnette: Coke Zero is no zero, it's a big hit
Sarah Gilbert: Fuze acquisition pits Coke v. Pepsi in ritzy juice war

In another purported Wal-Mart heavy-handed tactic, it appears to have asked the Coca-Cola company to alter its century-old beverage distribution model and deliver its products direct to Wal-Mart's warehouses. This would allow Wal-Mart increased scale and efficiency since it could replenish Coke products within its own supply chain instead of having Coke bottling partners visit stores daily to re-stock Wal-Mart stores nationwide.

The suspected threat? That Wal-Mart would launch a competing sports drink product to sit alongside Coke's Powerade product in all Wal-Mart stores -- and that would dent Coke's profit a tad. While this is a rumor at this point, it seems plausible -- Wal-Mart has so many private-label products (Sam's Choice products, for example) already. Many of those third-party manufacturers would jump at the chance to make a sports drink product for Wal-Mart stores.