CocaCola is eyeing the cannabis drinks market

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

CocaCola Co. says it’s monitoring the nascent industry and is interested in drinks infused with CBD — the nonpsychoactive ingredient in marijuana that treats pain but doesn’t get you high. The Atlantabased 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 nonpsychoactive CBD as an ingredient in functional wellness beverages around the world,” CocaCola spokesman 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.

Pot stocks Tilray Inc., Cronos Group and Canopy Growth gained in premarket trading Monday in response to CocaCola’s interest. Tilray jumped 6.8 percent, adding to its 40 percent gain last week; Cronos rose 3.1 percent and Canopy’s U.S. shares climbed 2.9 percent.

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 $3.8 billion to increase its stake in Canopy Growth Corp., a Canadian marijuana producer with a value that exceeds $10 billion.

Molson Coors Brewing Co. is starting a joint venture with Quebec’s Hydropothecary Corp. to devel op cannabis drinks in Canada. Diageo, maker of Guinness beer, is holding discussions with at least three Canadian cannabis producers about a possible deal. Heineken’s Lagunitas craftbrewing label has launched a brand specializing in nonalcoholic drinks infused with THC, marijuana’s active ingredient.

CocaCola already has been diversifying as consumption of soda continues to decline. The company, with its iconic brands ranging from Coke and Sprite to Powerade, announced it will acquire the Costa Coffee chain for $5.1 billion in August, and has expanded into other products including juice, tea and mineral water over the past decade.

The discussions with Aurora are focused on CBDinfused drinks to ease inflammation, pain and cramping, according to the BNN Bloomberg report.