Coca-Cola Exploring Potential Entry Into Cannabis Industry
Coca-Cola is reportedly looking into entering the cannabis drink business as global soda consumption continues to decrease. In search of new opportunities in the beverage industry, Coca-Cola is closely monitoring the use of cannabis and CBD in products, something that has garnered considerable consumer interest in the past few years.
Wellness drinks containing CBD, a non-psychoactive chemical in marijuana, have become exceedingly popular as of late. CBD has a multitude of highly beneficial qualities that make it attractive for those who are looking for a natural way to alleviate anything from pain to anxiety.
In a statement, Coca-Cola said, “The space is evolving quickly,” while expressing interest in being one of the first multinational companies to become involved in this budding industry. As reported by Bloomberg, Coca-Cola’s current market cap lies just under an astounding $196 billion, and efforts under chief executive James Quincey to diversify away from its staple soft drinks are heating up.
In the past decade, Coca-Cola has been quietly picking up a variety of beverage companies different from their usual soda products. In August, it purchased Costa Coffee Chain for $5.1 billion, expanding its product line to include everything from soda, to juice, coffee, and even tea.
Other major beverage companies are following suit, with Corona beer maker Constellation Brands investing nearly $4 billion into Canadian cannabis group, Canopy Growth, to explore new cannabis-infused beverages. Liquor conglomerate Johnny Walker has also expressed interest in exploring opportunities related to cannabis beverages.
Marijuana is still illegal at the federal level, but that hasn’t stopped a flood support for the use of CBD in everything from food to skin care products. The first-ever medical treatment derived from cannabis will even hit the U.S. market soon after regulators give it the green light. This is seemingly only the beginning, as more major multi-national companies begin to venture into a market that is just in its infancy.