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Earlier this week Pepsi CFO Hugh Johnston said the soda conglomerate had no plans to get into the cannabis industry with a CBD beverage of their own. Stocks went up briefly after Johnston gave an interview on CNBC’s popular segment “Squawk on the Street” saying that Pepsi would be “looking very critically” at the CBD beverage industry.
Shortly after the interview, when pressed for further information Johnston clarified that the company had no plans to get involved in the cannabis industry in the near future. Johnston said that the main reason for this was because cannabis was still federally illegal in the US. Bearing this in mind, the company had no desire to get involved.
Johnston said on a phone interview with CNBC, “I think the difficulties in investing in that category, particularly in the U.S., where federally these things are still not legal, are quite a considerable challenge. So we look at everything, but certainly no plans at this point to do anything.”
Tilray Stock Plummets
After the interview the major cannabis stock Tilray dropped, losing about one fifth of its value. It should be noted that Tilray fluctuates a lot, so this is perfectly normal. No need to panic! Other stocks such as Aurora Cannabis, the biggest cannabis company in Canada, fell five percent. Shares of Pepsi also dropped, albeit at a much lower rate.
This all comes after Coca Cola indicated that they were interested in developing a CBD infused beverage of their own, though definite plans have not been set in stone just yet. One can speculate that Pepsi will change their mind once Coca Cola gets their drink out there and it’s a huge success.
Pepsi is making a huge mistake, in my opinion anyways. CBD is one of the hottest trends in the US and Canada right now, despite the inherent risk. You know what is not doing well these days? Soda. People don’t want to eat and drink things that are bad for them anymore. People want to be healthy, hence why you’re seeing CBD everywhere these days. Ah well, their loss I suppose. A CBD Pepsi drink would be gross anyway.
Featured Image Source: pepsicolahudsonvalley.com
Would you drink a Pepsi CBD drink? Are they making the right decision to forgo getting involved? Tell us your thoughts in the comments below!