Why Pepsi and Coca-Cola Have to Enter the Cannabis Market

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.

Coca-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.

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Selling sugary sodas in an increasingly health-conscious market simply won't cut it.

That's why a cannabis beverage from Pepsi or Coke may hit the shelves sooner than you think...

CBD-Infused Drinks Are the Wave of the Future

Cannabidiol (CBD) is a compound found in the cannabis plant. It's believed to have anti-inflammatory properties and can help relieve stiffness and chronic pain.

And it's becoming popular in the health-conscious community, as athletes like UFC fighter Nate Diaz and NFL linebacker Derrick Morgan use CBD hemp oil to improve their athletic performance and overall health.

Unlike THC found in marijuana, CBD is not psychoactive, and it does not change a person's state of mind.

And Pepsi and Coke already have products that they could infuse with CBD...

Coke sells Gold Peak Tea, Honest Tea, Vitamin Water, and Zico coconut water.

Renegade Investment Expert: "It's time to double down - or even triple down - on your cannabis investments!" Read more...

But I believe Pepsi would be the first with a cannabis product because of its aggressive push into the health and wellness sector...

Pepsi sells "fun for you" products, which include Mountain Dew and Fritos. It has a line of "better for you" products, which include Pepsi Zero Sugar and Propel water.

But its "good for you" line shows how progressive Pepsi has become. This line features Kevita kombucha, Sabra hummus, and Naked Juice.

With the health benefits of CBD and with U.S. CBD consumer sales reaching $1.15 billion by 2022, it only makes sense for Pepsi to create a CBD-infused beverage line.

Now, I don't expect Pepsi or Coke to jump into the marijuana market until all cannabis use is legal under federal law.

But it's spotting trends like this now that will lead investors to the largest long-term gains.

And when I spoke with cannabis expert Danny Brody, the VP of Investor Relations of The Green Organic Dutchman Holdings Ltd. (OTCMKTS: TGODF), he was also bullish on the cannabis-infused beverage market.

You see, the times are a changing...

In a 2017 Gallup poll, 64% of Americans surveyed believed marijuana should be legalized.

Cannabis legalization is the will of the people.

And you can stake your claim right now in the $10 billion industry before it goes absolutely vertical...

In the election year of 2012, marijuana stocks started rare gains of as much as 3,240%.

In 2014, they started producing up to 4,606% profits.

In 2016, they began rare climbs of 6,074% and more.

How much richer could select cannabis stocks make YOU in the election year of 2018?

Take a look...

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