Coca Cola won't be launching cannabis drinks (for now)

Last month, Coca Cola had declared an interest in the cannabis business and in particular CBD beverages via a spokesperson and a press release of the company. The news was widely reported, given the importance of the company as world leader in soft drinks.

Last Friday, Coca Cola CEO James Quincey added to these comments, announcing at an analysts« conference that the company had no plans »at this stage" to enter the market. CBD market.

In or out?

Questioned by an analyst from Cowen & Co, Quincey put to rest rumors that Coca Cola was interested in the CBD market for «wellness» drinks, and was close to concluding an agreement with Canadian medical cannabis producer Aurora.

The stock market value of’Aurora had surged after rumors of a deal with Coca Cola. The company has also just been listed on the New York Stock Exchange. She did, however, make it clear that these were only exploratory discussions. Announcements of this kind usually send the stock market into a tailspin, and can be used to manipulate share prices.

Coca Cola's undisputed rival, Pepsi, had also announced its interest in the cannabis market. CFO Hugh Johnston had declared earlier this month: «I think we're going to evaluate the possibilities, but I'm not ready to share any information about possible projects at the moment».

Like most companies that claim to keep an eye on developments in the cannabis market, Pepsi remains very evasive.

Despite growing interest, the illegal status of cannabis in the United States is still a major barrier to investment. It's also interesting for companies to first observe consumer behavior in the great canadian experiment before taking the plunge.

Some, on the other hand, have not waited for access to this data before getting involved and investing. This is the case, for example, of Constellation, producer of Corona beer, which invested nearly $4 million in Canadian producer Canopy Growth. Molson Coors, another alcohol producer has entered into a partnership with Hydropothecary Corporation to produce cannabis-infused beverages for the Canadian market.

Other alcohol giants such as Pernord Ricard and Diageo have also expressed an interest in possible collaboration with the cannabis community. This is also the case for tobacconists such as Imperial Brands and Marlboro.

These industries (alcohol and tobacco) surely have more reason to monitor the cannabis market. who can become a strong competitor for their products.