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Will Coca-Cola and Aurora Cannabis Make a Deal?
September 17, 2018

Coca-Cola, Aurora Cannabis Talking CBD Wellness Beverage

Coca-Cola, the famed Atlanta pop purveyor, is talking with Aurora Cannabis, Canada’s third largest cannabis company, according to Bloomberg. The soda company’s ongoing flirtation with the plant-touching business is, for now, strictly a CBD kind of a thing, “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 told Bloomberg in an email.

Coca-Cola’s potential investment and foray into canna comes hot on the heels of Surterra’s move into targeting baby boomers with Jimmy Buffett, and mirrors moves earlier this year by Molson Coors, HeinekenConstellation, and even a Budweiser heir. Somehow, without an imminent deal in place, as we have seen when other massive corporations come courting canna companies, shareholders pushed Aurora Cannabis’ stock numbers higher on Monday morning. Additionally, as savvy investors have probably noticed with similar news in the past few months, we’re now reaching a moment in time where big investment news into Canadian cannabis companies pushes the entire sector’s index upward. Neat!

Wisely, Coca-Cola is doing their due diligence and –FOR NOW, and IF there’s a deal– is only targeting CBD-based product lines with the intent of targeting the “wellness” category. “Wellness,” while it remains ever elusive to definitively quantify as a category, is a rapidly growing consumer category within cannabis and other industries, that companies such as Surterra have already carved out a niche for with baby boomers and other demographics, in addition to Goop’s “curated product line” at some MedMen locations, amongst many others. CBD has become a trendier and trendier ingredient for wellness and heath-driven products due to its abilities to lessen inflammation and pain. Based off the FDA’s decision earlier this summer to allow a CBD-based drug onto the market for the first time ever, many companies are putting their initial bets on if/when legalization occurs on the wellness category.

With no deal in sight as of yet, investors on both sides of the border will have to wait and see if the news will sway the U.S. border patrols, uhh, “interesting” announcement late last week about doling out lifetime bans to investors and workers in Canada’s cannabis industry.