PepsiCo (NASDAQ:PEP) announced yesterday that it is considering a new line of cannabis-infused drinks. The announcement comes two weeks after Coca-Cola (NYSE:KO) spoke of the same idea. So will we soon have to choose between Pepsi cannabis drinks or Coca-Cola ones?
The ages-old struggle continues!
Pepsi Cannabis Drinks
It was almost inevitable. The list of big brands looking to make drinks with cannabis is growing, and once Coca-Cola joined that list, it was only a matter of time before we saw Pepsi's name there too.
Other major brands making the move into cannabis include Molson Coors (NYSE:TAP), Budweiser (NYSE:BUD), and Constellation Brands (NYSE:STZ).
Speaking of Pepsi cannabis drinks, Hugh Johnston, the chief financial officer of Pepsi, said the company "will look at it very critically" but isn't quite ready to "share any plans that [it] may have in the space right now."
Cannabis Potential
Johnston is aware that cannabis is still illegal under federal law in the US, even though some states have legalized it. Many are hoping that Canada's legalization of the drug in October, may encourage further legalization across the states, but only time will tell if this happens.
For now, though, Johnston continued that the company would "turn over every stone to look for growth."
So based on his comments, Pepsi cannabis drinks are still only a potential and not a sure thing.
However, Pepsi would be foolish not to take advantage of this burgeoning market. The marijuana industry is estimated to be worth $22 billion by 2020. Cannabis beverages will take a sizeable chunk of that figure.
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Pepsi Cannabis Drinks vs. Coca-Cola Cannabis Drinks
Two weeks ago, Pepsi's archrival Coca-Cola said it was looking into "wellness beverages" that could include CBD and that it was "closely watching" CBD growth. These beverages would not deliver a high, as the psychoactive component in marijuana—THC—would be removed. But they would contain the benefits of cannabidiol such as relaxation and ease of pain or nausea.
Coca-Cola said it was in talks with Aurora Cannabis on this matter. Both stocks increased on the news, with Aurora's growing as much as 16%.
However, Pepsi cannabis drinks seem to be causing a drop in Pepsi stock. Currently, PEP stock is down 1.80%.
Featured Image: Depositphotos/© doroshin
