The Coca-Cola Company and Aurora Cannabis are planning to collaborate to create a CBD-infused beverage. According to a report from BNN Bloomberg Television, these two companies are in serious talks to develop a CBD drink. When the announcement was made, shares of Canadian marijuana producer Aurora Cannabis increased to about 23 percent to $8 in early Monday trading. By noon Eastern Time, the stock had settled to a profit of about 14 percent.
Coca-Cola is the largest beverage maker in the world, and their partnership with Aurora Cannabis will soon become effective as the two companies plan to reach an agreement. Various reports state that the two companies will soon reach an agreement.
According to an unknown source, “It’s going to be more of the ‘recovery drink’ category,”
The source also mentioned the fact that discourse between the Coca-Cola Company and Aurora Cannabis are in progress but they aren’t guaranteed to be fruitful. Nevertheless, if the two companies come to an agreement, it may not be declared to the public.
A different source reported to BNN Bloomberg that Coca-Cola has also started talking with Aphria, another cannabis company in Canadian, but that the talks are still at the preliminary stage.
Companies Refused to Speak on Deal
The spokesperson of Coca-Cola, Kent Landers refused to publicly talk about the deal with Aurora Cannabis. However, he sent an email to BNN Bloomberg stating that together with all the other beverage companies in the industry, they are carefully monitoring the evolution of non-psychoactive CBD as a compound in functional healthy beverages worldwide. Space has quickly evolved. But they are yet to reach an agreement.
The spokesperson for Aurora Cannabis, Heather MacGregor, also refused to speak about the potential deal with Coca-Cola. But she agreed that Aurora Cannabis has plans on taking advantage of the CBD beverage market.
According to MacGregor, Aurora Cannabis has a rule not to talk about business development initiatives until they are certain but the company has a responsibility to their shareholders to give proper consideration to all necessary opportunities that are introduced.
The managing director of equity research at GMP Securities LP, Martin Landry told BNN Bloomberg that most consumer packaged goods (CPG) organizations had interest in entering the CBD industry and that the forthcoming legalization of cannabis in Canada made the dream come true. On October, the sale and recreational consumption of cannabis products will be legalized in Canada under Bill C-45, which was passed during the summer by the Parliament.
According to Landry, If he’s a big CPG company, the reason why he will collaborate with a cannabis producer is to utilize them as a trial market to produce and perfect products in Canada for the purpose of entering the U.S. in due time.
Landry also mentioned the fact that big companies in other industries had plans on investing in the promising cannabis industry.
Landry added that consumers want the liquor and tobacco [companies] to invest in the cannabis industry.
Landry finally stated that he foresees a lot of opportunities as the newly legal marijuana industry keeps growing.
He said that presently the cannabis industry is still growing which means there are not enough investors yet.