Soft drink giant The Coca-Cola Company (NYSE: KO) will be reporting its third quarter numbers tomorrow before the market opens.

The last time that Coca-Cola reported earnings was back in July when the company beat out analyst estimates by 3 pennies with a reported 92 cents per share. For the third quarter, analysts are expecting to the see the company show earnings of 81 cents per share.

PepsiCo (NYSE: PEP) did a little buying in the marketplace today. No, I'm not talking about share buybacks -- I'm talking about an acquisition in Russia.

PepsiCo teamed up with Pepsi Bottling Group (NYSE: PBG) to take on a majority position in Russia's largest juice business, JSC Lebedyansky. The price tag was significant -- $1.4 billion (890 million euro). This AP news item indicates that it is the largest transaction for the beverage maker since its purchase of Quaker Oats.

Coca-Cola (NYSE: KO), watch out, because this is all about being competitive in the world marketplace, which means it's all about being competitive against you! It's also about hedging against the challenging growth rates in case volumes seen in the domestic marketplace, as well as taking on international exposure to gain the benefit of a weaker dollar. Consumer companies know that it's smart to think globally these days, so acquisitions like these take on major importance. Plus, PepsiCo cannot live on carbonated sodas alone, so any opportunity to broaden its portfolio base beyond its flagship brand is a welcome strategy (Coke knows this to be true, too).

It's difficult to argue that this is anything but a cool move -- I'd like to argue, since I own shares of Coca-Cola, but alas, I can't find a proper contrarian angle. So, nice move, Pepsi, you did good today, you got a decent asset in a growing international territory, and the price tag won't break the bank. But don't worry, my bubbly friend -- I'm sure Coke is taking note of this, seeing what it needs to do to remain competitive against you (at least, I hope that's what the brains in Atlanta are doing).

Disclosure: I own shares of Coca-Cola; positions can change at any time.

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.