Cannabidiol, or CBD, does not produce the high commonly associated with marijuana. The investment follows a deal past year in which Constellation acquired a almost 10 per cent stake in Canopy and the two companies agreed to collaborate on the development of cannabis-based drinks. The space is evolving quickly, " Coke spokesman Kent Landers said.
Coca-Cola Co. stock was up about 0.25% on the reports Monday, trading at around $46 a share. The company says it's an ingredient that could gain ground in wellness beverages globally. And the company is interested enough in selling CBD beverages that it also held talks with Aphria, another Canadian marijuana producer about two months ago, insiders told Bloomberg, although those negotiations apparently fell apart at some point.
"We have no interest in marijuana or cannabis".
Canopy Growth, which recently secured a $3.8 billion investment from Corona-maker Constellation Brands, saw its shares rise 2.5 percent to $63.07 in midday trades.
"Coca Cola confirmed it is "closely watching" CBD as an ingredient in wellness beverages", Bloomberg reported on Monday.More news: Carolinas face days more of catastrophic flooding from Tropical Storm Florence
One of Bloomberg's sources said the drinks in question would fall under the "recovery drink" category.
Coca-Cola's efforts to diversify could take it into cannabis territory.
Coca-Cola says it is "closely watching" the expanding use of a cannabis element in drinks, another sign cannabis and cannabis-infused products are getting more acceptance in mainstream culture in the US. There is no guarantee that the deal will go through.
In June, America's medicines regulator approved Epidiolex, a British-made epilepsy treatment that contains cannabidiol.
Aurora is Canada's third-largest pot company, with a market value of C$8.7 billion. He said he would expect that Coke would develop the product first for sale in Canada, readying it for the United States once it's legal.