Coca-Cola has been monitoring the recent cannabis stock trends and has its eyes on creating drinks with Cannabidiol.
Cannabidiol (CBD) is the non-Psychoactive ingredient in Marijuana that is seen as beneficial- health wise. Tetrahydrocannabinol (THC) is the ingredient that gets the user high, but not CBD as its properties can be attributed to medical purposes.
Illnesses that can be treated with CBD range from chronic pain to anxiety and reportedly even epilepsy.
Over half of the adults in the US have access to marijuana for medical purposes, and it has been legalized for recreational use in at least nine states.
Meanwhile, Aurora’s shares skyrocketed to as much as 23 percent Monday last week to $8 in addition to their rival Tilray, also a Canadian based company, adding as much as 9.4 percent regarding Coca-Cola’s interest in the industry.
Canopy Growth Corp. has a value that exceeds C$13 billion, which estimates to around $10 billion.
The deal between Coca-Cola and Aurora has yet to be finalized, but it could “broaden the reach of cannabis-infused beverages into functional wellness categories.”, said Wells Fargo analyst Bonnie Herzog.