Coca-Cola is reportedly talking with Aurora Cannabis about the idea of developing beverages infused with an ingredient found in marijuana.
As reported by BNN Bloomberg Television, the negotiations revolve around infusing drinks with CBD, a chemical that can be used to treat pain, but is not the source of the "high" that pot users get from smoking or eating marijuana.
Coca-Cola would not directly comment on talks with Aurora, but the Atlanta-based beverage giant did confirm its interest in the business.
In a statement issued Monday, the company emphasized that it is not looking to invest in those "psychoactive" aspects of marijuana or in the plant itself, only in another component known as CBD, short for cannabidiol.
"We have no interest in marijuana or cannabis," Coca-Cola said in the statement. "Along with many others in the beverage industry, we are closely watching the growth of non-psychoactive CBD as an ingredient in functional wellness beverages around the world."
CBD is seen as an aid in easing “inflammation, pain and cramping,” according to BNN Bloomberg.
While weaving around THC, marijuana’s active ingredient, the statement did specifically rule out agreements with cannabis companies or investments in the industry.
“The space is evolving quickly,” the statement said. “No decisions have been made at this time.”
A spokeswoman for Aurora told BNN Bloomberg that that the company does intend to enter the market for infused beverages.
The report did at least give Aurora stock a rush, shares rising as much as 23 percent in early trading before losing some of their buzz. Other pot-related stocks also added altitude.
Credit: George Frey/Getty Images
Credit: George Frey/Getty Images
With consumer thirst for sodas ebbing, Coca-Cola has increasingly been looking to diversify. But Coke’s emphatic rejection of the high-inducing chemicals contrasts with some other beverage companies.
For example, Constellation Brands – which owns Corona beer – announced plans to pour $3.8 billion into Canopy Growth, another Canadian marijuana company. And Molson Coors announced a joint venture with Hexo Corp. to come up with cannabis drinks.
Other beer-makers are also talking with cannabis companies, according to Bloomberg.
The laws on marijuana's legality differ from state to state. Marijuana is poised to become legal in Canada.
About the Author
