Beverage giant Coca-Cola interested in cannabis drinks, sending cannabis shares higher

Beverage giant The Coca-Cola Company (NYSE:KO) is interested in getting into the cannabis drinks business, a report by Bloomberg said Monday, and this turn caused a spike in cannabis companies in premarket trade.

The Atlanta-based soft-drinks maker is in talks with Canadian marijuana producer Aurora Cannabis Inc (TSX:ACB) (OTCMKTS:ACBFF) to develop the beverages, the news agency said. 

“We are closely watching the growth of non-psychoactive CBD as an ingredient in functional wellness beverages around the world,” Coca-Cola spokesman Kent Landers said in an emailed statement to Bloomberg. “The space is evolving quickly. No decisions have been made at this time.”

READ: Aurora Cannabis acquires European organic hemp company Agropro

Aurora Cannabis settled on Friday up 2.27% to US$6.52. In Canada, the stock closed on Friday 2.95 higher at C48.54.

The shares of other cannabis companies jumped as a result. Tilray (NASDAQ:TLRY) climbed in the premarket, rising 6.7% to US$116.35. Cronos Group (NASDAQ:CRON) went up 2.6% to US$10.65 and Canopy Growth gained 3.31% to US$48.75.

Last month, Corona beer brewer Constellation Brands Inc announced it will spend US$3.8bn to increase its stake in Canopy Growth Corp

READ: Canopy Growth cements strategic tie-up with Centric Health to supply medical cannabis

Molson Coors Brewing Co. is starting a joint venture with Quebec’s Hydropothecary Corp to develop cannabis drinks in Canada. 

Canada is legalizing recreational use of cannabis next month.

Story by ProactiveInvestors