Coca-Cola Says 'Closely Watching' Growth Of Cannabidiol-infused Beverages

(RTTNews) - Responding to media reports, beverages giant Coca-Cola Co. (KO) said Monday it is "closely watching" the growth of cannabidiol-infused beverages or CBD.

"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. The space is evolving quickly. No decisions have been made at this time," Coca-Cola said in a statement.

BNN Bloomberg Television reported earlier on Monday that Coca-Cola is in talks with Canadian cannabis company Aurora Cannabis Inc. (ACB.TO) to develop marijuana-infused beverages. According to the report, Coca-Cola's talks with Aurora are focused on CBD-infused drinks to ease inflammation, pain and cramping.

Cannabidiol is a naturally occurring cannabinoid constituent of cannabis. It is a chemical in the marijuana plant often used for medicinal purposes, and does not have the intoxicating effects like those caused by tetrahydrocannabinol or THC.

Coca-Cola's partnership with Aurora Cannabis would mark the first entry of a major manufacturer of non-alcoholic beverages into the marijuana sector.

The alcohol industry is already betting big on the consumable cannabis market. Canada legalized medical cannabis way back in 2001 and is home to many of the largest cannabis companies in the world. In June, 2018 Canada legalized recreational use of marijuana nationwide.

Constellation Brands (STZ, STZ-B) said in August that it will invest $4 billion in Canopy Growth Corp. (CGC), Canada's largest medical marijuana producer, as part of an expansion of the two companies' strategic partnership.

Molson Coors Brewing Co. (TAP, TAP-A, TPX.TO) also said in August that its Canadian business unit, Molson Coors Canada will form a joint venture with Canadian cannabis producer, Hydropothecary Corp. (HEXO.TO) to develop the marijuana-infused beverages.

Coca-Cola has also been diversifying amid a decline in soda consumption. The company announced in late August that it has agreed to acquire coffee brand Costa Limited from parent company Whitbread Plc (WTB.L) in a deal valued at 3.9 billion pounds or $5.1 billion.

The acquisition of Costa is expected to give Coca-Cola a strong coffee platform across parts of Europe, Asia Pacific, the Middle East and Africa.