Coca-Cola CEO says company has no plans for cannabis drinks
Last month, Coca-Cola came up with an idea of possibly getting into the CBD industry while keeping a close watch over the soft drinks market infused with the goodness of the CBD. Unfortunately, this beverage maker now reveals for not being interested in the pot. The CEO of Coca-Cola James Quincey revealed that they don't have any plans of getting into the cannabis industry at this stage.
CBD is a naturally occurring non-psychoactive element found in the cannabis.
Quincey's responded to a question that came from Cowen & Co. analyst Vivien Azer. He was asked about the rumors doing the rounds that Coca-Cola would plan to associate with a new CBD category.
This happened in the month of September when Coke declared of taking a close watch at the growth of CBD industry because of its ability to improve overall health and wellness. Moreover, during the same duration, another rumor was circulating that Coke may consider investing in Canadian cannabis company Aurora (ACB).
Now it looks like Coke certainly decided to pass.
Aurora’s share has recently begun its trading on the New York Stock Exchange a week ago along with the other shares of Canadian pot stocks Cronos (CRON), Canopy Growth (CGC) and Aphira (APHQF).
Despite Coke turned down the idea of the rumored deal in association with Aurora or other cannabis-based companies, the interest is yet growing among other global consumer companies for CBD. The major credit of this growing curiosity goes to the legalization of recreational marijuana in Canada.
Pepsi, a competitor of Coke has not yet entirely given a negative response for making a move into the cannabis industry. Chief Financial Officer, Hugh Johnston responded to get into the cannabis industry. He stated, “It’s fair to say we look at everything”. He further added that it could be challenging to invest in the CBD market primarily in the United States. The reason is very clear; the use of marijuana is illegal on a federal level excluding the nine states and D.C.
The owner of the Constellation Brands - Corona has a stake in Canopy Growth which is higher than $4 billion.
The Canadian subsidiary of Molson Coors having a joint venture with The Hydropothecary Corporation will be producing cannabis-infused beverages in Canada.
The Marlboro owner, Tobacco giant Altria might be considering a stake in Aphria and is all set to enter the NYSE later this week. UK alcoholic beverage giant Diageo may also show similar interest in the cannabis industry.
Budweiser producer Anheuser-Busch InBev has not yet shown any interest to get into the cannabis world. However, the great-great-grandson of Anheuser-Busch's founder has recently introduced a new cannabis brand.