Coca-Cola Passes On CBD Drinks

The fizz created a buzz, but it didn’t last very long.

Conversations started, and stocks rose when word spread in September that the Coca-Cola Company (Coke) was considering a partnership with Vancouver-based Aurora Cannabis to produce cannabidiol-enhanced (CBD) wellness beverages.

Coke was quick to dispel rumors that any sort of deal had been reached with Aurora or that any decisions to move forward had been made.

On Tuesday, October 30, Coke CEO James Quincy reinforced the company’s current noncommittal stance, telling analysts during an earnings call that the company has no plan to get into the cannabis market at this time.

Aurora stock [U.S.: NYSE: ACB] dropped slightly in early-morning trading Tuesday following the news before recovering by noon. Cannabis stocks have struggled during the first couple of weeks of marijuana legalization in Canada.

The spread of legal cannabis has led to a steadily increasing demand for CBD products in recent years, fueling a rapidly-growing market.

While size estimates can vary drastically, the CBD is projected to be at the core of a multi-billion dollar industry within the next few years.

In June, Coke released its first alcoholic beverage in more than thirty years in Japan; a lemon-flavored alcopop drink with an alcohol content ranging from three to eight percent. In 1977, Coke bought and operated a New York-based wine company under the Wine Spectrum brand until they sold it in 1983.