Shares of Aurora Cannabis Inc. were up as much as 17 per cent today after a report the marijuana producer was in talks with the Coca-Cola Company to develop pot-infused drinks. "No decisions have been made at this time", Coke added.
Molson Coors Brewing Co.is starting a joint venture with Quebec's Hexo's Corp., formerly known as Hydropothecary Corp., to develop cannabis drinks in Canada.
Cannabis drinks use cannabidiol (CBD) as an ingredient for wellness drinks.
A partnership between Coke and Aurora would mark the first entry of a major manufacturer of non-alcoholic beverages into the market for cannabis-related products.
The discussions, which are said to be "serious", concern a line of drinks that would contain the non-psychoactive cannabidiol chemical, meaning consumers wouldn't drink the beverages to catch a buzz but rather to ease pain or inflammation.
Apple smartwatch slowly evolving into medical device
Several updates have given the watch many more features, like drawing out letters to text rather than speak into the device. Apple Watch has always been health orientated, a lot of people use these features but many including myself do not.
Coca-Cola may be looking into a new ingredient. The iconic beverage brand hopes to partner with Canada's number two cannabis company in the CBD market, a non-psychoactive cannabinoid commonly found in marijuana and hemp plants.
Big corporate names have inched into the marijuana industry since Canada approved recreational use, seeing the country as a production base and testing ground until U.S. Federal Law changes. It should be noted that Coca-Cola shares have risen since the news was announced. Just last week, Coke announced a deal to buy Costa Coffee for $5 billion.
The world's largest spirits maker Diageo (DGE.L) is also reportedly in talks with at least three Canadian cannabis producers as it considers a possible investment. Lagunitas, a craft beer label of Heineken, already has a drink infused with THC, which can be purchased at marijuana dispensaries in California.
Heather MacGregor, a spokeswoman for Aurora, said in an emailed statement that the cannabis producer has expressed specific interest in the infused-beverage space, and intends to enter that market, BNN Bloomberg's David George-Cosh reported.
There is no guarantee that talks between the companies will be successful or that a commercial agreement would be made public, BNN Bloomberg reported.