The Marijuana boom is alive and well in the United States. Although many states contest the legality of marijuana, major American companies already have an eye on the future.
On Monday morning, Coke announced that it is in preliminary discussion with Aurora Cannabis Inc. According to a Bloomberg report, Coke has initiated talks with the Canada pot company over including the nonpsychoactive ingredient in its drink line in the future. The company refused to discuss the plan in depth. However, Coke spokesperson Kent Landers did confirm that the company is “closely watching” the sector.
Aurora’s stock price rocketed more than 25% following the news. Other leading companies such as Tilray also saw a significant uptick after the announcement. Aurora is one of the top cannabis companies in Canada with a market valuation of more than $8 billion. With Canada ready to legalize marijuana on Oct. 17, Canada companies have grown rapidly as consumers excitedly enter the nascent market.
The move marks a definitive shift in market interests for the soda giant who purchased Costa Coffee for $5 billion in early August. With concerns regarding the decline in soda consumption and an eye towards the regulation of soft drinks, Coke is hoping that cannabis-laced products could provide an entirely new market of consumers. It could also have an impact on the image of Coca-Cola as it attempts to gain traction with a younger generation.
The news is further validation that a major marijuana market is waiting to be tapped by consumers and speculators alike. Constellation Brands, the owner of Corona and Svedka vodka, recently invested $4 billion into the Canadian pot company Canopy Growth. Lagunitas already has a THC infused beer available for purchase at marijuana dispensaries in California.
Get awesome merchandise and help 71 Republic end the media oligarchy by donating to our Patreon, which you can find here. Thank you very much for your support!