Coke might make a relocation into cannabis-infused drinks

Coca-Cola is considering a move into the growing market for cannabis-infused drinks.

Coke said in a declaration Monday that it is “closely viewing” the growth of CBD, a non-psychoactive element in marijuana, as an ingredient in what it called functional wellness beverages.

“The space is developing quickly,” Coke ( KO )stated.”No decisions have been made at this time.”

CBD, which does not produce a high for the user, has actually been utilized for medical purposes, including relieving inflammation, pain and nausea.

Coke’s interest was first reported by Bloomberg, which stated the company remained in talks with Aurora Marijuana, a Canadian marijuana business. Aurora has actually likewise revealed interest in cannabis drinks. Neither would comment on a possible deal.

“There is a lot happening in this location right now and we believe it has unbelievable potential,” said Aurora spokesperson Heather MacGregor. “Stories like this are further validation of the enormous worldwide potential of the cannabis market.”

Constellation Brands ( STZ), the maker of Corona beer, Svedka vodka and Casa Noble tequila, revealed last month that it is investing an additional $4 billion in the Canadian cannabis business Canopy Growth ( CGC).

And Lagunitas, a craft beer label of brewing huge Heineken ( HEINY), currently has actually a drink instilled with THC, cannabis’s active component, which does produce a high. It can be acquired at marijuana dispensaries in California.

In addition, a variety of Canadian cannabis business, consisting of Cronos ( CRON) and MedMen Enterprises ( MMNFF), now trade on United States stock market, and some American business have taken stakes. Both Coke and rival Pepsico have actually been aiming to expand their organisations beyond standard soft drinks as people consume less

soda because of health issues. Simply recently, Coke announced a deal to buy Costa Coffee for$5 billion. Canada remains in the process

of legislating leisure usage of cannabis. The drug is still prohibited under United States federal law, although some states have legalized it. In June, the US Food and Drug Administration approved

the epilepsy treatment Epidiolex, the first cannabis-based drug allowed the United States. It includes CBD. CNNMoney(New York )First released September 17, 2018: 10:17 AM ET