According to CNBC, Coca-Cola’s strong defensive qualities are offset by a premium valuation, limited upside and company-specific risks, while PepsiCo, Keurig Dr Pepper and Coca-Cola bonds are presented as alternative ways for investors to seek defense. Coca-Cola reported second-quarter organic sales growth of 6%, comparable EPS of 97 cents and raised full-year free cash flow expectations to about $12.4 billion from $12.2 billion, but the stock trades at 26 times forward earnings, has an average price target of $94.25 and faces up to $20 billion in tax-related risk tied to a transfer pricing dispute.

PepsiCo, which agreed last December to streamline its U.S. products by 20% and cut prices as part of a deal with Elliott Management, has a forward P/E of 15x and a dividend yield of 4.6%. Keurig Dr Pepper announced plans to buy JDE Peet's for $18 billion, combine it with its coffee operations and later spin it off, with CEO Timothy Cofer saying he expects $400 million in cost savings over three years. Coca-Cola’s debt carries an A+ rating from S&P, and existing bonds with maturities from three to seven years yield about 10 to 20 basis points over Treasurys.