Beverage giant The Coca-Cola Company (NYSE:KO) is interested in getting into the cannabis drinks business, a report by Bloomberg said Monday, and this in turn caused a spike in cannabis companies in premarket trade.
The Atlanta-based soft-drinks maker is in talks with Canadian marijuana producer Aurora Cannabis Inc (TSX:ACB) (OTCMKTS:ACBFF) to develop the beverages, the news agency said.
“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 said in an emailed statement to Bloomberg. “The space is evolving quickly. No decisions have been made at this time.”
Aurora Cannabis jumped about 18% to US$7.71 in New York Monday and by the same margin to C$10.04 in Toronto.
READ: Aurora Cannabis acquires European organic hemp company Agropro
The shares of other cannabis companies jumped as a result. Tilray (NASDAQ:TLRY) climbed in the premarket, rising 7.7% to US$117.51. Cronos Group (NASDAQ:CRON) dipped 2.% to US$10.17 and Canopy Growth gained 1.4% to US$47.80.
Last month, Corona beer brewer Constellation Brands Inc announced it will spend US$3.8bn to increase its stake in Canopy Growth Corp
READ: Canopy Growth cements strategic tie-up with Centric Health to supply medical cannabis
Molson Coors Brewing Co. is starting a joint venture with Quebec’s Hydropothecary Corp to develop cannabis drinks in Canada.
Canada is legalizing recreational use of cannabis next month.
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