CannabizDaily reported on Monday that Coca-Cola Co. is considering entering the cannabis market and was in talks with Canadian cannabis producer Aurora Cannabis Inc.
Sources told BNN Bloomberg that Coca-Cola, the largest soft drinks maker in the world, is interested in developing cannabidiol-infused beverages. CBD is the non-psychoactive ingredient found in cannabis and is mainly used for its medical benefits.
In response to reports about a possible deal between the two companies, Aurora Cannabis said that it has not signed an agreement with the beverage maker.
According to Aurora Cannabis, from time to time, it participates in exploratory talks with industry participants, but there isn’t any arrangement or agreement worth announcing.
Trading in Aurora Cannabis shares was halted pending the company’s talks. Aurora shares closed up over 10 percent in Canadian trading on Tuesday.
Aurora’s statement does not mean an end to Coca-Cola’s attempt at teaming up with a cannabis company in order to develop a weed-infused beverage. It could still pursue further talks with Aurora until they finalize a deal or go for an agreement with other cannabis producers.
Certainly, Coca-Cola will not pass up the opportunity to enter the cannabis market, especially with other beverage makers scrambling to cash in on the industry.
With more states in the U.S. legalizing cannabis and with Canada slated to launch its recreational cannabis market next month, traditional beverages and alcoholic drinks are expected to see their sales slow down.