Coca-Cola denies reports they are looking at making cannabis-based drinks

Lloyd Doyle
September 20, 2018

Coca-Cola Co. says it's monitoring the nascent industry and is interested in drinks infused with CBD - the non-psychoactive ingredient in marijuana that treats pain but doesn't get you high.

Aurora Cannabis issued a statement early Tuesday saying it does not have a deal with Coke or any other beverage company to create cannabis-infused beverages.

Canada is set to legalize cannabis on 17 October after both houses of Parliament voted to make the drug available for recreational use.

TERRY BOOTHEven though he's staying mum on the topic for now, Aurora Cannabis' (Quote, Chart TSX:ACB) Terry Booth says that a deal with Coca-Cola would be great not just for his pot company but for the marijuana space in general as it would help legitimize cannabis as a global enterprise.

"The space is evolving quickly", Coca-Cola said. "No decisions have been made at this time", read the statement. The Company's policy is not to comment on speculative media reports. Cannabis companies from the United States - where marijuana remains illegal at the federal level - have flocked to Canada to raise funds and establish businesses.

Last month, Corona beer brewer Constellation Brands Inc. announced it will spend $3.8 billion to increase its stake in Canopy Growth Corp., the Canadian marijuana producer with a value that exceeds C$13 billion ($10 billion).

"We have no interest in marijuana or cannabis", Coca-Cola said in a statement.

Coca Cola's statement shows the company has learned from its past missteps picking up on new drink trends, said Ali Dibadj, a senior analyst at AllianceBernstein with an expertise in US beverage and snack food companies. "It's going to be more of the "recovery drink" category", the source added.

"The company has been caught flat-footed in the past in not keeping up with trends in beverages". "You don't want to be too far ahead on any curve".

Other reports by Iphone Fresh

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