Coca-Cola is eyeing the cannabis market, according to a Monday Bloomberg report.
What is Coca-Cola doing?
The company is interested in cannabidiol oil in particular, one of two primary marijuana molecules. Cannabidiol — or CBD — is not a mind-altering or psychoactive substance, while its relative, tetrahydrocannabinol — or THC — is.
The company is reportedly watching the cannabis industry and is intrigued by the idea of drinks infused with CBD.
The company is reportedly intrigued enough that they are in what are reported to be "serious talks" with Canadian marijuana producer, Aurora Cannabis, Inc., according to Canada's BNN Bloomberg Television.
Coca-Cola Co. spokesperson Kent Landers issued a statement on the reports confirming the company's monitoring of CBD.
"We are closely watching the growth of non-psychoactive CBD as an ingredient in functional wellness beverages around the world," Landers said. "The space is evolving quickly. No decisions have been made at this time."
A source told BNN Bloomberg Television that the two companies are "pretty advanced down the path" of forging a deal.
The source added, "It’s going to be more of the ‘recovery drink’ category."
What about Aurora Cannabis?
According to Business Insider, shares of Aurora jumped 15 percent during early Monday trading after the Coca-Cola report broke.
Heather MacGregor, a spokesperson for Aurora, would not confirm talks with Coca-Cola, but did issue a statement on the company's interest in branching out into the wellness drink industry.
"Aurora has expressed specific interest in the infused beverage space, and we intend to enter that market," a statement read. "There is so much happening in this area right now and we think it has incredible potential. As a rule, we do not discuss business development initiatives until they are finalized, however, we have a responsibility to our shareholders to give proper consideration to all relevant opportunities that are presented."
The BNN Bloomberg Television report also noted that drinks of this type are specifically tailored to reduce pain in the body resulting from cramping and inflammation.