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Why Pepsi and Coca-Cola Have to Enter the Cannabis Market
By JACK DELANEY, Associate Editor, Money Morning • September 13, 2018

PepsiCo Inc. (NASDAQ: PEP) and Coca-Cola Co. (NYSE: KO) have been in business for over 120 years, but if they want to say in business, they'll need to enter the cannabis market.

U.S. soda sales dropped 12 years in a row from 2004 to 2016, according to Beverage Digest. Consumers are searching for healthier products, which is why the global health and wellness food market is expected to jump 14% from $707 billion in sales in 2016 to $811 billion by 2021.

cannabis marketCoca-Cola now offers a coconut water line, and Pepsi sells kombucha (fermented tea) to appeal to more health-conscious consumers.

It's a good start, but it's not enough.

And shareholders aren't happy with tepid returns…

In the past five years, the Dow Jones Industrial Average has climbed 67.73%. During that same time, the PEP and KO stock prices are up just 37.93% and 16.04%, respectively.

In order to bring in more revenue, attract more investors, and create market-beating gains, each company has to enter new markets.


https://moneymorning.com/2018/09/13/why-pepsi-and-coca-cola-have-to-enter-the-cannabis-market/