Coke and cannabis…
Oh, Coca-Cola and cannabis. Cannabinoid infused soft drinks have been on the rise in states and countries where is it is legal to produce and distribute. In particular, those which include cannabidiol (CBD), a non-psychotropic active ingredient of cannabis that has been proven to have numerous health benefits.
Bill Griffin, 18th of September, 2018
The world’s largest manufacturer of soft drinks has indicated that they’ll be throwing their hat into the ring with this ground breaking statement yesterday,
“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.”
Coco-Cola Co (KO) is in talks with Canadian firm Aurora Cannabis Inc. (ACB) in developing such beverages. Aurora stock leapt 17% on the release of the statement. Coke saw slight gains.
Coke joins other mainstream companies who are looking to partner with cannabis companies before it is legalized in Canada on 17 October allowing them to focus on the fast-growing cannabis sector, which is expected to be legalized across North America and Europe in the coming years.
These include a string of beverage companies hoping to participate in the market for – the safer alternative – recreational (and medicinal) cannabis. Beer makers Constellation Brands (STZ) – producer of Corona and other brands, Molson Coors (TAP) and Heineken (HEIN) are all vying for a spot in the market for cannabis related products. In addition, Diageo (DEO), the producer of drinks such as Johnnie Walker whiskey, is researching investment opportunities in the cannabis sector.
It’s hardly surprising these companies will be looking for such a move as alcohol consumption – in U.S. states where cannabis has been legalised – has seen a dramatic drop. Coke too has seen sales fall off in the soft drink sector as consumers move towards a healthier alternative to sugary drinks.
Whilst alcohol companies are eyeing up possibilities that include the psychotropic tetrahydrocannabinol (THC) it seems likely Coke will stick with CBD – which is gaining a reputation as a healthy supplement widely used by athletes – rather than an ingredient to get high off.
It is expected that Coke and Aurora will produce a health drink to alleviate post workout pain such as inflammation and cramps. Along the lines of PepsiCo’s Gatorade drink – which would be the ideal counter move from Coke’s number one rival. PepsiCo is yet to make a statement on any such deal.
CBD infused drinks may not get you high, but the news has certainly helped cannabis related stocks rise. According to information platform New Cannabis Ventures, the Canadian index has increased a whopping 60% since 17 August doubling the global index rise of 30% during the same period.
The Cannabis Capital Convention is inviting key players from the cannabis industry to their conference, which takes place on 26 September in Amsterdam.
The Cannabis Capital Convention is committed to this growth. Big names from the cannabis industry will meet to inform professional and private investors on the latest developments. They will join analysts from Berenberg Bank – the oldest bank in Germany – specializing in the beverage industry, amongst other things, to discuss more around the intended cooperation between Coca-Cola and Aurora.
The convention has CEOs and spokespersons from companies including Bedrocan, C21 Investments, The Green Organic Dutchman, Prohibition Partners, Cannabis Industry Europe, Grön Chocolate and more.
Register now (limited tickets left)
For collaborations, contact the Cannabis Capital Convention team via firstname.lastname@example.org