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.

The world's largest maker of Pepsi-Cola beverages is not PepsiCo (NYSE: PEP) itself, but a 1999 PepsiCo spin-off with the clearest mission statement in corporate America.

Pepsi Bottling Group (NYSE: PBG) is engaged in the manufacture, sale and distribution of Pepsi-Cola beverages. The firm operates about 300 manufacturing and distribution facilities and delivers Pepsi-Cola, Aquafina water, Lipton's Iced Tea, Mountain Dew, Tropicana juice, Starbucks Frappuccino and Slice to stores and third-party distributors. PBG operates in North America and Europe, accounting for more than half of the Pepsi-Cola beverages sold in North America and about 40% of the worldwide volume. Coca-Cola Enterprises (NYSE: CCE) is a major competitor.

There was good news for PBG investors last week, when Goldman Sachs raised its rating on the beverage group to "attractive." The analyst noted the potential for improved performance, as costs for most of the commodities used to make and bottle beverages stabilize.

So who is the world's largest manufacturer, seller and distributor of Pepsi-Cola beverages? Here's a hint. It is not PepsiCo (NYSE: PEP). It is, in fact, a 1999 PepsiCo spin-off headquartered in Somers, New York.

Pepsi Bottling Group (NYSE: PBG) is engaged in the manufacture, sale and distribution of Pepsi-Cola beverages. The firm operates about 300 manufacturing and distribution facilities and delivers Pepsi-Cola, Dr Pepper, Aquafina water, Lipton's Iced Tea, Mountain Dew, Tropicana juice, Starbucks Frappuccino and Slice to stores and third-party distributors. PBG operates in North America and Europe, accounting for more than half of the Pepsi-Cola beverages sold in North America and about 40 percent of the worldwide volume. Coca-Cola Enterprises (NYSE: CCE) is a major competitor.

The company pleased investors earlier in the week, when it reported Q2 EPS of $0.70 and revenues of $3.36 billion. Analysts had been expecting $0.63 and $3.29 billion. Management also guided FY07 EPS to $2.02-$2.07, versus Street consensus of $1.98. PBG shares popped into the initial stage of a bullish "pennant" consolidation pattern on the news. Prices frequently exit pennants moving in the same direction they were traveling when they entered them. In this case, that would be to the upside.

Brokers recommend the shares with three "strong buys," one "buy," ten "holds" and one "sell." The PBG P/E ratio (16.08), Price to Sales ratio (0.62), Price to Book ratio (3.64), Price to Cash Flow ratio (6.81), Price to Free Cash Flow ratio (29.56) and Return on Equity (24.91%) compare favorably with industry, sector and S&P 500 averages. Institutions own about 58% of the outstanding shares. The stock is one of those used to calculate the S&P 500 Index. Over the past 52 weeks, it has traded between $30.13 and $36.47. A stop-loss of $31.35 looks good here.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com.