news

Coca-Cola eyes CBD market

Posted: 19 September 2018 | | No comments yet

“We are closely watching the growth of non-psychoactive CBD as an ingredient in functional wellness beverages around the world,” says beverage giant

The Coca-Cola Company has publically stated that it is ‘closely watching ‘non-psychoactive CBD’ in response to speculation that it is interested in marujana as a possible ingredient in its beverages. In a statement released on 17 September clarifying its position, the company said, “We have no interest in marijuana or cannabis. 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.”

Non-psychoactive cannabidiol, or CBD, is the ingredient in marijuana that can be used to tackle pain, but that doesn’t get users ‘high’. Scientists at Oxford University are currently researching its medicinal benefits, with evidence to date from other sources claiming it may be an effective treatment for disorders including inflammation, epilepsy, nausea and vomiting, schizophrenia and anxiety. 

Coca-Cola is certainly not alone in its interest in the ingredient. As US states and Canada legalise its recreational use and companies aim for product diversification in stagnant markets, a report on Bloomberg.com highlights other beverage companies actively investing in marijuana companies. These include Corona beer brewer Constellation Brands Inc., which has announced it will spend $3.8 billion to increase its stake in Canopy Growth Corp., the Canadian marijuana producer with a value that exceeds C$13 billion. Bloomberg also reports that Diageo PLC, maker of Guinness beer, is holding discussions with at least three Canadian cannabis producers about a possible deal, and that Heineken NV’s Lagunitas craft-brewing label has launched a brand specialising in non-alcoholic drinks infused with THC, marijuana’s active ingredient.

Bloomberg reports that shares in Aurora Cannabis Inc, with whom Coca-Cola is said to be in talks, saw the former’s shares jump by as much as 23 per cent to $8 on Monday of this week. Stocks in similar companies benefited from the knock-on effect, with Tilray Inc. adding as much as 9.4 per cent to its value in response to Coca-Cola’s interest stated interest in CBD.

 

 

Send this to a friend