Could a Cannabis Investment Be on Coke's Radar?
Coca-Cola (NYSE: KO) is a stable but evolving company that has adapted to changing consumer trends over the years. While its most popular products are its sugary drinks, its business is much more robust, with more than 500 brands around the world. In addition to soft drinks, the company also sells coffee, tea, juice, water, and plant-based drinks.
One offering that could soon be on the horizon for Coca-Cola is cannabis. Although it may seem like a risky move for a fairly conservative company like Coca-Cola, here's why a move into that industry may be inevitable.
Coca-Cola made a big announcement this year: It's going to be offering its first alcoholic beverage in decades, a hard seltzer. Through its Topo Chico brand, it plans to launch the new products next year, and the reason is likely no mystery: During the coronavirus pandemic, hard seltzer has been selling incredibly well. Data from analytics company Nielsen shows that hard seltzer sales quadrupled over a 15-week period ending June 13. It's an incredible, and welcome, opportunity for Coca-Cola to continue growing its business. In 2019, the company reported revenue of $37.3 billion -- down 19% from five years ago, when it generated $46 billion.
Source Fool.com
