Pepsi is the latest beverage company to express interest in the cannabis space. Last Tuesday, the drink and snack corporation’s Chief Financial Officer, Hugh Johnston, announced that the company is thinking about getting into cannabis, though PepsiCo.’s plans remain vague.
“I think we’ll look at it critically, but I’m not prepared to share any plans that we may have in the space right now,” Johnston told CNBC.
The announcement comes merely two weeks after PepsiCo.’s historic rival, The Coca-Cola Company, announced similar interest in the cannabis space, particularly in creating wellness beverages, as its principle demographic becomes more health-conscious.
Speculation arose that a Coca-Cola wellness drink infused with CBD would result from a partnership with Canadian licensed cannabis producer, Aurora. However, both companies are yet to confirm the rumors.
A Pepsi cannabis drink isn’t a far-fetched concept, considering how many notable beverage companies and cannabis companies have recently expressed interest in merging the cannabis and beverage industries.
Constellation Brands, the largest distributor of alcohol in the United States, has invested heavily in Canopy Growth Corp., another Canadian licensed provider, and implied that a cannabis beer is on the horizon. Earlier this year, California-based beer company Lagunitas also announced their plans for a THC-infused sparkling water called Hi-Fi Hops.
Another private company, Province Brands, announced in July that they had created a cannabis beer entirely produced from the seed, stalk, and stems, otherwise, the byproduct of the cannabis plant.
In recent years, the sale of dried herb has gone down significantly as the sale of edibles, cartridges, and other alternate forms of consumption have increased. Cannabis entrepreneurs in the United States and Canada largely predict that the cannabis beverage space has significant potential to grow. A Pepsi cannabis drink, or a Coca-Cola one, might be the next big thing.