Coca-Cola’s New Cannabis Drink Fix

By CultureBanx Team

  • Coca-Cola is in talks with Aurora Cannabis to develop CBD-infused beverages

  • CBD industry could reach $22 billion in market size by 2022

Long gone are the controversial days of Coca-Cola (KO -1.09%) infusing cocaine into its popular product, now they’ve turned their attention to cannabis. The dominant soft drink maker may have the chance to make cannabidiol (CBD), the non-psychoactive chemical found in marijuana plants, infused drinks for the masses.

Why This Matters: Nine states and Washington, D.C. legalized recreational marijuana this year as of January, and Coca-Cola is hoping that the Farm Bill will spread the green love to all 50 states. If the Farm Bill passes, it will remove hemp as a controlled substance which CBD can be derived from, therefore making the plant legal under federal law.

Cannabis research firm Brightfield Group, recently raised its projections for the CBD industry, finding it could reach $22 billion in market size by 2022.  Coke investors are probably very welcoming of this news as a strong revenue stream that will have a lot of upside. If the company is able to capture just 10% of the projected market size, it would bring in $2.2 billion in revenue by 2022.

This line of thinking follows their investments into other alternative drinks as the consumption of soda continues to decline. In an effort to get in on the natural sports drink wave, they became the second-largest investor in Kobe Bryant’s BodyArmor drink, making his initial 10% investment worth $200 million in just five years.

Situational Awareness: BNN Bloomberg reported the company is in “serious talks” with Aurora Cannabis to develop CBD-infused beverages. In regards to all the speculation around Coca-Cola’s plans to venture into this market they stated  “We have no interest in marijuana or cannabis. Along with many others in the beverage industry, we are closely watching the growth of non-psychoactive CBD as an ingredient in functional wellness beverages around the world. The space is evolving quickly. No decisions have been made at this time.”

CBx Vibe:Hooked” Siimba Liives Long