Coca-Cola Inc. (NYSE:KO) is eyeing the cannabis market, Bloomberg reported this morning. Coca-Cola and cannabis would be a concoction that has yet to be created in the beverage industry and would put both parties on the map.
Coca-Cola and Cannabis
A representative from the beverage company told Bloomberg that the company is closely monitoring the nascent industry and is interested in infusing CBD oil with its drinks.
“We are closely watching the growth of non-psychoactive CBD as an ingredient in functional wellness beverages around the world,” Coca-Cola spokesman Kent Landers said in an emailed statement to Bloomberg. “The space is evolving quickly. No decisions have been made at this time.”
Coca-Cola is in current talks with Canadian marijuana producer Aurora Cannabis Inc (TSX:ACB). Landers declined to comment on the talks with Aurora.
Coke’s possible pivot into the marijuana industry isn’t surprising. The company will most likely add cannabis as a trendy ingredient while their traditional businesses slow. The company has seen a hit this year from President Trump’s steel and aluminum tariffs.
CBD-Infused Beverages
Coca-Cola isn’t the only company looking into infusing CBD into their beverages. Molson Coors Brewing Co. (NYSE:TAP) announced last month that it was in discussion with another Canadian cannabis company to develop a CBD-infused beverage.
Even the maker of Guinness beer, Diageo PLC (NYSE:DEO), is in talks with three Canadian cannabis producers to discuss infusing its products with CBD. Beverage companies are now currently in a race to gain momentum in the marijuana industry. Coca-cola is leading so far in the soft drink sector.
According to the Bloomberg report, the Aurora CBD-infused drinks with Coca-Cola would be focused on easing inflammation, pain, and cramping. Coke currently makes and distributes Powerade, and it is currently unknown which beverage will be chosen for the venture.
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Coca-Cola Stock Movement
According to Yahoo Finance, KO is trading in the green on the market this morning. At press time, KO shares are trading at $46.01, up $0.02 (0.04%).
Since the Coca-Cola announcement this morning, Aurora Cannabis is soaring on the Toronto market. ACB is currently trading at $9.70 a share, up $1.16 (13.58%).
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