Two headlines are rolling throughout the cannabis community and industry this morning.
One states, “PepsiCo just became the latest beverage company to say it's looking at the fast-growing cannabis market.” While the other reads, “Pepsi slides after CFO says company has no plans for cannabis.”
So, what is all the hype about and what exactly is going on with PepsiCo? Let’s take a closer look.
In an interview on CNBC'S Squawk on the Street, Pepsi Co CFO, Hugh Johnston said that the company was taking a “critical” look at the cannabis space but would not disclose any further information about any plans that may or may not have been in the works.
This comes just a few short weeks after the Coca-Cola company made an announcement that they were watching the CBD-beverage market closely.
In response to an inquiry by an analyst on the company's conference call discussing earnings on Tuesday morning, the CFO declared that "it's fair to say we look at everything, but certainly no plans at this point to do anything."
Shortly after this, Pepsi Co stock dropped by almost 2% to $108.88. It seems if though, investors in Pepsi Co were hoping that they would follow in the steps of many other beverage brands that have recently entered the sector.
As it stands, in 2018 alone there has been an abundance of beverage makers entering the cannabis industry via mainly CBD offerings and a few others that are eyeing the marking closely waiting to make moves.
Here’s a breakdown regarding some of the world’s largest beverage companies and how they are catering to a new consumer base.
Constellation Brands – The parent company of Corona, recently made a $4 billion investment into one of Canada’s largest legal cannabis producers, Canopy Growth.
Anheuser Busch - The makers of the beloved Budweiser beer, recently added a new role titled “Chief Non-Alcohol Beverages Officer” and the CEO stated they “are trying to learn more about” the cannabis sector and how they could merge.
Molson Coors - In August, the company entered into a venture with The Hydropothecary Corporation, a Canadian cannabis producer in pursuit of “opportunities to develop non-alcoholic, cannabis-infused beverages for the Canadian market following legalization."Posted: Tuesday, October 2nd, 10:00am 19 days ago
Ashley is a freelance cannabis writer and the co-owner of CannaLance. Her passion for sharing education and truth surrounding cannabis stems from a personal loss. Ashley has always had an elevated relationship with cannabis but it wasn't until 2015 that she turned that passion and relationship into a career as a cannabis writer.