In fact, it's making more than one and a load of accessories too!
A spokesperson for the company told techradar "We are pleased to share that Pepsi is working with a licensing partner to bring a line of mobile phones and accessories to market in China in the next few months."
It's currently not clear what the handsets will offer customers over the Pepsi logo on their phone, but we're likely to hear a lot more about the firm's intentions over the coming weeks.
For China's eyes only
Don't get too excited though, as the likelihood is you'll never get your hands on a Pepsi phone. "Available in China only, this effort is similar to recent globally licensed Pepsi products which include apparel and accessories" the spokesperson continued.
"Pepsi has always moved at the speed of culture, and today technology is a key cultural pillar at the heart of consumer interaction.
"Pepsi has no plans to get into the mobile phone manufacturing business, but we are committed to engaging with consumers in innovative ways to grow our brand. We'll share more news as it becomes available."