Beverage companies around the globe are starting to look into the cannabis market. Can you blame them, though? There is an ever-increasing demand for cannabis products right now. But we may have just found our winner: reports have surfaced today of Coke moving into cannabis. Yeah, that's right. Coca-Cola (NYSE:KO) might be getting into marijuana, specifically the CBD-infused drink market.
How? With who, and doing what? We've got those answers; keep reading.
Coke Moving into Cannabis
On Monday, September 17th, Bloomberg reported that Coca-Cola has been in talks with Aurora Cannabis (TSX:ACB). Considering Aurora Cannabis is a leading Canadian cannabis company, and has expressed interest in making cannabis-infused drinks, huge things could be on the horizon for both companies. Or it could backfire, which is what some people are now saying about the Constellation Brands Canopy Growth investment.
It's difficult as of now to say what the outcome of Coke moving into cannabis will be. Or what the result of a Coca-Cola Aurora partnership will be. All we know is that Coke did confirm on Monday that it is "closely watching" CBD growth, which is a non-psychoactive component in cannabis. With CBD, the user does not get 'high,' but it still provides help in handling things like pain and nausea.
We also know that the market is currently reacting positively to Coke moving into cannabis and a potential Coke Aurora Cannabis partnership. Both Aurora Cannabis and KO stock are trading in the green zone.
As of 1:18 p.m. EDT, Coke is trading at $46.12, which puts the stock up 0.28%.
Meanwhile, Aurora Cannabis is doing far better.
As of 1:08 p.m. EDT, Aurora Cannabis is trading at $9.96 on the Toronto Stock Exchange, which puts the cannabis stock up 16.63%.
What do you think about Coke moving into cannabis? Is a Coca-Cola Aurora partnership something you’d want to see? If this partnership is confirmed, would you want Coke to do something other than producing CBD-infused drinks?
Featured Image: Depositphotos/© masterlu