Coke drinks market

(Reuters) – Coca Cola Co (KO.NMonday said it was closely monitoring the growing market for marijuana-infused beverages, in response to a media report that the world's largest beverage company was in talks with Aurora Cannabis Inc. (ACB.TO).

Discussions on a possible reconciliation of products, reported by the Canadian financial channel BNN Bloomberg, could open a new path in the Battle of Coke to overcome the slow demand for its heavy soft drinks by diversifying into coffee-based beverages. health.

According to the report, there was no guarantee of successful negotiations between the two companies, but Aurora shares reacted by climbing 22%. Coke stocks rose slightly in a New York market weakened by concerns over commercial rates.

The marijuana industry has attracted the l '. interest of a few large corporations, while Canada and a wave of US states have undertaken to legalize the. recreational use of the drug.

However, US companies are still cautious about taking action in a company that remains illegal under US federal law.

Coke and Aurora, in separate statements, stated that they were interested in cannabidiol-infused beverages but that they could not comment on any market speculation.

Coke and Aurora would likely develop drinks that would relieve inflammation, pain and cramps, the BNN report said, citing sources familiar with the matter.

A partnership between Coke and Aurora would mark the first entry of a major non-alcoholic beverage manufacturer into the cannabis product market, which until now has been a hunting ground almost exclusively for the alcohol industry.

Corona Maker Constellation Brands (STZ.N) invests more than $ 4 billion in marijuana production Canopy Growth (WEED.TO) to make cannabis-based products, while Molson Coors Brewing Co's (TAP.NThe Canadian agency has announced that it will make cannabis-infused drinks with Hydropothecary Corp.HEXO.TO).

The size of Constellation 's investment, announced a month ago, sparked speculation about other buyouts, investments and partnerships in the industry, pushing Canadian marijuana stocks up.

"We continue to expect to see more business between Canadian cannabis companies and major players in the global alcohol market that have not yet been exposed," said Vivien Azer, an analyst at Cowen.

Azer said that he would not be surprised by Pepsi's similar decision, "with CBD appearing to be a good addition to their market share at the top of the Gatorade franchise."