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article imageCoca-Cola and Aurora in talks to brew marijuana-infused drinks

By Karen Graham     Sep 17, 2018 in Business
Some serious discussions are going on between Coca-Cola and Aurora Cannabis Inc. to develop cannabis-infused beverages, a move that would signal a significant foray into the marijuana sector by one of the world's most iconic brands.
Vancouver-based Aurora Cannabis, saw its stocks rally more than 17 percent on Monday after BNN Bloomberg reported Coca-Cola was in talks with Aurora to develop weed-infused beverages. Coca-Cola’s stock rose 0.72 percent to US$46.32 on the New York Stock Exchange.
Unlike the deals being made by the likes of Molson Coors, Corona beer maker, Constellation and some craft beer makers, Coca-Cola and Aurora would likely develop beverages that will ease inflammation, pain and cramping.
According to CNBC, other companies with exposure to the cannabis market, including Tilray and Scotts Miracle-Gro, also gained on the week’s first day of trading. Tilray climbed 10.2 percent and Scotts added 2.99 percent in U.S. trading. Canopy shares added 2.99 percent in Canadian trading.
Cans of Sprite  Diet Coke and Coca-Cola are pictured at a grocery store in Chicago  Illinois  on Apr...
Cans of Sprite, Diet Coke and Coca-Cola are pictured at a grocery store in Chicago, Illinois, on April 17, 2012
Scott Olson, Getty/AFP
Interestingly, while neither company confirmed the talks, neither company denied them. According to Market Watch, Coca-Cola issued a statement saying: "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. The space is evolving quickly. No decisions have been made at this time."
This may be a good move for Cola-Cola because as consumers begin turning away from carbonated soda consumption, more and more non-alcoholic beverage companies are looking to expand into bottled water and wellness drinks.
Aurora Cannabis issued the following statement to CNBC: “Aurora has expressed specific interest in the infused beverage space, and we intend to enter that market. There is so much happening in this area right now and we think it has incredible potential. As a rule, we do not discuss business development initiatives until they are finalized, however, we have a responsibility to our shareholders to give proper consideration to all relevant opportunities that are presented.”
Cannabis for recreational use will become legal on October 17 in Canada, and the headlines dealing with acquisitions and companies diving into the cannabis market continue to make marijuana stocks soar.
Canopy shares have doubled this year. Tilray, which made its debut in July, has more than tripled in the last one month alone.
More about cocacola, aurora cannabis, potinfused drinks, Canada, healthfocused beverages
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