Coca-Cola may work with Aurora Cannabis on a new collaboration.
Coca-Cola might be breaking into a new market.
The beverage giant is “in serious talks” with the Canada-based company Aurora Cannabis Inc. to collaborate on drinks infused with cannabidiol, a chemical in marijuana plants called CBD, BNN Bloomberg reported.
“They’re pretty advanced down the path,” a source told the Canadian business channel. “It’s going to be more of the ‘recovery drink’ category.”
The new products would potentially aim to help with inflammation, pain and cramping, according to BNN Bloomberg.
Coca-Cola responded to the news in a statement. “We have no interest in marijuana or cannabis,” the company wrote. “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. The space is evolving quickly.”
The statement added, “No decisions have been made at this time.”
After the report of the possible collaboration surfaced, Aurora Cannabis’ stocks were boosted by upwards of 17% in Canada, CNBC reported.
In a statement to CNBC, Aurora Cannabis said, “Aurora has expressed specific interest in the infused beverage space, and we intend to enter that market. There is so much happening in this area right now and we think it has incredible potential.”
“As a rule, we do not discuss business development initiatives until they are finalized, however we have a responsibility to our shareholders to give proper consideration to all relevant opportunities that are presented,” they added.
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Constellation Brands, which owns Corona, previously invested $4 billion in a cannabis producer, The New York Times reported. Molson Coors is working on selling cannabis-infused drinks, and Heineken’s Lagunitas brand markets sparkling water with THC, according to The New York Times.
CBD isn’t just invading the food industry—CBD oil, derived from the hemp plant (not to be confused with hemp oil, which is derived from the seeds) is becoming a hugely popular ingredient in the beauty world as well, thanks to its prevalence of vitamin E and omega fatty acids.