Coca-Cola 'closely watching' cannabis in wellness drinks

Marco Green
September 20, 2018

The Coca-Cola Company says that it's "closely watching" the growth of the use of a non-psychoactive element of cannabis in wellness drinks.

All the interest from big name alcohol and beverage companies can only benefit the cannabis space, says Booth, Aurora's CEO.

This is widely being interpreted as yet another indication that cannabis-related products are being seen as more legitimate in mainstream culture.

Aurora Cannabis Inc. today is responding to a request from the Investment Industry Regulatory Organization of Canada ("IIROC") regarding media reports with respect to potential partnerships with multiple beverage companies.

"The space is evolving quickly", Coca-Cola said.

A Coke spokesman said the beverage giant has made no such decision.

It's a distinct possibility, following reports that the beverage giant is talking with a Canadian cannabis company about creating a wellness drink that would contain cannabidiol (CBD).

Canada is set to legalize cannabis on 17 October after both houses of Parliament voted to make the drug available for recreational use. Cannabis companies from the United States - where marijuana remains illegal at the federal level - have flocked to Canada to raise funds and establish businesses.

"This will help patients with an exceptional clinical need, but is in no way a first step to the legalisation of cannabis for recreational use".

Last month Canopy shook up the industry after US alcohol giant Constellation Brands invested another $5 billion in the pot producer for a almost 40 per cent stake.

"It was only a matter of time before the major beverage companies came in, not only from the alcohol but the Coca-Cola, Pepsi Cola side of the fence", Booth told BNN Bloomberg Monday.

But testing the waters of cannabis-themed drinks could backfire, he said.

Coca-Cola Co (KO.N) is closely watching the fast-growing marijuana drinks market for a possible entry that would expand the world's largest soft drink maker's ambitions further away from sugary sodas.

"Did you have me on your show to talk about the rumours of us doing something with Constellation [Brands]?" "It's going to be more of the "recovery drink" category", the source added.

Other reports by Click Lancashire

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