BNN Bloomberg is reporting that Coca-Cola Company, one of the most noticeable brand names in the world, is considering the cannabis market. The beverage giant is in talks with Aurora Cannabis, according to multiple sources, about producing a cannabis infused beverage that would be high in CBD. Aurora, a Canadian based cannabis producer, as well as other cannabis stocks, rallied on the news.
BNN Bloomberg Reports:
Unlike other deals between alcohol makers and cannabis producers aimed at making drinks that will give consumers a “buzz” similar to inhaling marijuana, Coca-Cola and Aurora (ACB.TO 5.93%) would likely develop beverages that will ease inflammation, pain and cramping.
Estimates vary, but the consumer CBD market is estimated to grow to US$2.1 billion by 2020, from $202 million in 2015, according to a recent report in the Hemp Business Journal.
“They’re pretty advanced down the path” of doing a deal, according to one source who has direct knowledge of the talks between the two companies.
“It’s going to be more of the ‘recovery drink’ category,” the source added
As cannabis legalization becomes more and more widespread, and nations like Canada federally drop barriers to entry, large companies like Coca-Cola are inevitably going to jump into the fast growing market. CBD based infusions offer health benefits with no psychoactive effects, making the jump easier for many companies.
Video from BNN Bloomberg: