Coca-Cola considers cannabis-infused drinks

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Cannabidiol, a constituent of cannabis, can help ease inflammation, pain and cramping, but has no psychoactive effect.

Coca-Cola said yesterday that it was "closely watching" the market for cannabidiol (CBD) drinks after a report suggested that it was close to making one. "The space is evolving quickly".

Besides Aurora, she said cannabis companies Tilray (TLRY.O) and Aphria (APH.TO) were likely targets for partnerships with big consumer companies looking to get into the market.

A source close to the negotiations between the companies said: 'They're pretty advanced down the path of doing a deal.

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Aurora's shares surged on the news, jumping 17 percent Monday in Toronto.

The Food and Drug Administration in June gave its approval to the the first cannabis-derived medicine, a CBD-oil substitute known as Epidiolex. Meanwhile, Coca-Cola's stock rose 0.15% to US$46.05 on the New York Stock Exchange.

Molson Coors has also entered the marijuana space through a joint venture with Canada's Hydrotherapy Corporation to make non-alcoholic, cannabis-infused beverages.

The burgeoning industry has created a demand for edible products infused with cannabidol (CBD) - the non-psychoactive constituent part of cannabis that can be used to limit pain, according to some experts.

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Green Party President Peter Sinkamba says he is extremely happy that Coca-Cola, which is best known for its eponymous caffeine-based Coca-Cola drink, has made a decision to experiment with a different drug: cannabis.

Constellation Brands, a giant spirits company that counts Corona beer among its labels, has bought a multibillion-dollar minority stake in Canopy Growth, a Canadian medical marijuana producer. "I think we're on track to be very ready for all of the formats in 2019", he said. "It's going to be more of the "recovery drink" category", they added of the beverage. The drinks would not include THC, or tetrahydrocannabinol, the chemical that produces a high.

Coca-Cola has been eyeing cannabis-infused drinks, according to a statement. The first-ever medical treatment derived from a marijuana plant will hit the USA market soon, after regulators in June gave an epilepsy treatment by GW Pharmaceuticals the green light.

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