Coca-Cola May Join the Marijuana market
19 Sep 2018
Coca-Cola is planning to join the marijuana market, which has attracted drink makers, among them, being Molson Coors.
However, unlike the path that Molson and other beer makers have taken, Coca-Cola has no plans of rushing its beverages. Instead, the American drink gigantic might aim consumers who want to relieve swelling and associated pain through the use of legal chemical present in marijuana. The chemical is known as CBD, and it is not related to the psychoactive ingredient known as tetrahydrocannabinol (THC).
On Monday, Coca-Cola issued a statement saying, “The industry is growing quickly.” “We are keenly surveying the ballooning of non-psychoactive CBD being used as an ingredient in effective wellness drinks all over the world.”
The wellness drink is a resemblance of Coca-Cola’s 1800s starts, such as an infamous brew that had a dose of cocaine extracted from coca leaves. However, over a century ago, the ingredient was eliminated from the drink. (Since then, Coca-Cola denied that it is up to date formula had some cocaine booster.)
In the recent years, the consumption of soft drinks has increased, forcing Coca-Cola and its competitors to diversify. Over the past few years, Coca-Cola has diversified its product varieties, which comprises of juices and bottled water. Last month, it was ready to purchase Costa Coffee Chain at a cost of $5.1 billion.
Through an email, Coca-Cola refused to talk about a news report by Bloomberg, which said it was negotiating with a Canadian marijuana producer known as Auroa Cannabis, in regards to manufacturing drinks that has cannabidiol, which is a non-psychoactive chemical contained in marijuana plants.
Through an email to CBS MoneyWatch, Auroa the Canadian company said it is passionate about the infused beverage industry, and its planning to get into the market.
The spokesperson of the company said “We cannot share information about business expansion, until deals are finished. But, we owe our shareholders the accountability of considering all marketable opportunities presented to us.”
Apart from the Bloomberg report, there are other agreements between marijuana manufacturers in Canada and U.S. drink companies, when the use of marijuana for recreational purposes will be legalized next month in the country. Also, other forms of drugs that can be consumed will be legalized next year.
Last month, Coors’ Canadian plant was to work together with Hydropothecary, a Canadian producer of marijuana in making a non-alcoholic drink that contains marijuana. On the other hand, Constellation Brands which manufactures Corona Beer stated that it would use $3.8billion to buy an investment share in Canopy Growth, a Canadian producer of marijuana.
On Monday, a share of Coca-Cola company was trading at around $46, and stock hiked with approximately 0.25%.