Coke May Get Into Pot

Coca-Cola bottles

Bottles of Coca Cola are on display at a Haverhill Mass. supermarket

"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 company said in a statement on its website on Monday. "The space is quickly evolving". "No decisions have been made at this time", Coke added.

Aurora Cannabis is Canada's third biggest cannabis producer and the company confirmed it was in talks with Coca-Cola concerning cannabis infused drinks.

Earlier this year, beer giant Molson Coors Brewing said it would make cannabis-infused drinks with Hydropothecary, while Corona-beer maker Constellation Brands invested $4bn more into pot firm Canopy Growth.

Coke isn't the first company to look into cannabis-infused drinks.

The company is interested in cannabidiol oil in particular, one of two primary marijuana molecules.

It seems like all the cool kids are doing it, but many were surprised to see that the world's largest beverage company is considering dipping its toes into the cannabis market.

New Cannabis Ventures' global cannabis stock index has risen about 87 percent over the past year.

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Aurora's shares surged on the news, jumping as much as 23 percent Monday in NY to $8.

"Aurora has expressed specific interest in the infused beverage space, and we intend to enter that market", it said.

Hard on the heels of a $5.1-billion deal to buy Costa Coffee last month, analysts said a move into marijuana-infused drinks fit with Coke's moves toward a healthier product portfolio. That's a non-psychoactive ingredient derived from marijuana.

Canada is an obvious major market for a new wave of commercially produced drinks, given that recreational cannabis use is set to be legalised on 17 October.

The CBD drinks would likely aim to ease inflammation, pain and cramping, the BNN report said here&_gucid=&_gup=twitter&_gsc=gQCuZEQ.

"We have no interest in marijuana or cannabis", read the company's short and terse sounding statement.

BNN Bloomberg reported that shares in Aurora surged as much as 19% when markets opened Monday, paring gains to about 16% to $9.92 on the Toronto Stock Exchange.

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