Will we be able to buy cannabis in Walmart (NYSE:WMT) soon? The Canadian branch of America's most popular everything-store said on Tuesday that it is exploring such a possibility. So what's going on?
Cannabis in Walmart
At present, the idea is just that... an idea. The retailer has expressed that no plan of action has been put into place as of yet.
The big box retailer has been coy on the matter.
“As we would for any new industry, Walmart Canada has done some preliminary fact-finding on this issue, but we do not have plans to carry CBD products at this time,” Walmart spokeswoman Diane Medeiros told Reuters.
So while it is only performing "preliminary fact-finding" on this "new industry," the mere mention of cannabis in Walmart was enough to get investors buzzing.
Company shares rose almost 3% to $97.68 yesterday.
Why Wouldn't Walmart Carry Cannabis?
Let's be honest. This idea may very well come to pass sooner than we think. I don't think anyone is fooled here. Walmart should be jumping on this bandwagon.
After all, we are seeing other major US corporations tip-toe closer to the cannabis industry as of late. Pepsi (NASDAQ:PEP), only a week ago, said it was keeping an eye on the cannabis market with a view to potentially make cannabis-infused beverages.
Coca-Cola (NYSE:KO) was the same, reportedly having talks with Aurora Cannabis (TSX:ACB)—only one of the industry's biggest players.
So maybe cannabis in Walmart means it will stock the infused range of drinks and snacks when those, inevitably, hit the market. Will it supply purely dried cannabis? Maybe not.
>> Canadian Cannabis Penny Stocks in the Red Today—Why?
Legalization
While cannabis is illegal in the US at the federal level, it will be completely legal across all of Canada in a week.
Cannabis-infused products are going to be a huge market trend, and we are seeing all the signs of this now. Talks between major alcohol and drinks brands are encouraging others to follow suit and look for their piece of this pie.
And the pie is hearty: cannabis legalization in Canada is estimated to create about $10.4 billion CAD in retail sales.
Wouldn't you jump on this?
Do you think Walmart should carry cannabis?
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