Coca-Cola eyeing the cannabis market

The world’s largest beverage company may be the next industry giant to jump into the cannabis drinks business.

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. The Atlanta-based soft drinks maker is in talks with Canadian marijuana producer Aurora Cannabis Inc. to develop the beverages, according to a report from BNN Bloomberg Television.

“We are closely watching the growth of non-psychoactive CBD as an ingredient in functional wellness beverages around the world,” Coca-Cola spokesperson Kent Landers said in an emailed statement to Bloomberg News. “The space is evolving quickly. No decisions have been made at this time.” Landers declined to comment on Aurora.

Coke’s possible foray into the marijuana sector comes as beverage makers are trying to add cannabis as a trendy ingredient while their traditional businesses slow. Last month, Corona beer brewer Constellation Brands Inc. announced it will spend US$3.8 billion to increase its stake in Canopy Growth Corp., the Canadian marijuana producer with a value that exceeds US$10 billion.

Coca-Cola has already been diversifying as consumption of soda continues to decline. The company announced it will acquire the Costa Coffee chain for US$5.1 billion in August, and has expanded into other products including juice, tea and mineral water over the past decade.

Discussions with Aurora are focused on cannabidiol-infused drinks to ease inflammation, pain and cramping, according to the BNN Bloomberg report.