Coca-Cola is eyeing the growing cannabis drinks market.
Aurora Cannabis led pot stocks higher today after Coca-Cola Co. made the announcement, becoming the latest beverage company to tap into surging demand for marijuana products.
Coke says it’s interested in drinks infused with CBD — the non-psychoactive ingredient in marijuana that treats pain but doesn’t get you high.
Coke’s possible foray into the marijuana sector comes as beverage makers are trying to add cannabis as a trendy ingredient while their traditional businesses slow.
Last month, Corona beer brewer Constellation Brands Inc. announced it will spend $3.8 billion to increase its stake in Canopy Growth Corp., the Canadian marijuana producer with a value that exceeds $10 billion.
Coca-Cola has already been diversifying as consumption of soda continues to decline. The company, with its iconic brands ranging from Coke and Sprite to Powerade, announced it will acquire the Costa Coffee chain for $5.1 billion in August, and has expanded into other products including juice, tea and mineral water over the past decade.
“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. “The space is evolving quickly. No decisions have been made at this time.”
Aurora’s shares surged on the news, jumping as much as 23 percent Monday in New York to $8. Other stocks in the cannabis industry got a boost, with Tilray Inc. adding as much as 9.4 percent in response to Coca-Cola’s interest.