Published: Sun, September 23, 2018
Economy | By

Coke in talks to make cannabis-infused drinks

Coke in talks to make cannabis-infused drinks

Julian Cabrera, factory manager at New Earth Biosciences, holds up a large glass beaker containing thick, golden-colored, fully-refined cannabiol oil -derived from cannabis - in Salem, Ore. Shares of the company, Aurora Cannabis Inc., closed up almost 17 percent on the Toronto Stock Exchange after the report. A Politico report published last week said that workers of Canadian cannabis companies could face a lifetime travel ban to the US.

Cannabidiol, or CBD, does not produce the high commonly associated with marijuana. It is believed by many to have anti-inflammation and pain-relieving properties, and numerous cannabidiol-infused products have emerged recently.

A partnership between Coca-Cola and local Albertan producer Aurora Cannabis would be pretty big news, as it would make Coke the first major non-alcoholic drinks manufacturer to enter the cannabis market.

A Coca-Cola spokesman says the beverage giant has made no such decision.

The statement followed a report that Coca-Cola was allegedly in "serious talks" to develop cannabis-related beverages with Canada's Aurora Cannabis.

Marijuana becomes legal across Canada on 17 October. Getting on a major US listing will designate the company as a vetted stock to USA investors.This has been the case with all the marijuana stocks on US listings, often seeing increased investor activity as a result.Aurora has always been seeking a spot on the NYSE or Nasdaq, and the completion of that goal will go a long way toward boosting the Aurora Cannabis stock forecast. It all started when Canopy Growth received a $4 billion investment from Constellation Brands, the beverage maker behind Corona beer and Svedka vodka, sending its stock up more than 22% in a single day.

Coca Cola's statement shows the company has learned from its past missteps picking up on new drink trends, said Ali Dibadj, a senior analyst at AllianceBernstein with an expertise in USA beverage and snack food companies. "They missed the energy drink phenomenon, they missed - and then had to buy into - the functional waters like Vitamin Water and coffee", Dibadj said.

Coca-Cola Co (KO.N) said on Tuesday it bought Australia-based Organic & Raw Trading Co, known for its Mojo brand of kombucha tea, extending its push into healthier drinks. Many Americans aren't intimately familiar with the cannabis plant and might not understand that CBD has no psychoactive properties. The company has announced that it is planning to launch cannabis-infused drinks in the future. Do you support the production of such beverages? If you come to the conclusion that they are in fact bad buyouts, then you may want to reconsider your position in Aurora.

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