Coca-Cola Co is closely watching the fast-growing marijuana drinks market for a possible entry that would expand the world`s largest soft drink maker`s ambitions further away from sugary sodas.

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Coca-Cola announced its interest in a statement on Monday, responding to a report from BNN Bloomberg that said it was in talks with Canada`s Aurora Cannabis Inc https://www.newcannabisventures.com/cannabis-stock-index

Several U.S. states have legalized marijuana but it remains against federal law.

Sales in U.S. legal markets should nearly triple to $16 billion by 2020 from $5.4 billion in 2015, according to market research firm Euromonitor International, and Constellation says cannabis globally could be worth $200 billion in 15 years.

"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," Coke said in its statement on Monday.

Cannabidiol is one of hundreds of molecules found in marijuana plants, and contains less than 0.1 percent of THC. It does not cause intoxication.

There are already CBD drinks available in some markets, made by brands such as Dirty Lemon, Sprig and Kickback.

Moving into this area carries little reputational risk for Coke, said Liberum`s von Stackelberg.

"If they came out with a THC-infused drink, that`s a different question," he said.

Aurora`s shares rose 17 percent while U.S-listed shares of fellow Canadian producers Canopy Growth Corp and Tilray Inc were up 2 percent and 9 percent, respectively.

(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)