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Beverage Giants are Considering Entering the Cannabis Market

<p>The carbonated soft drink company Coca-Cola is reportedly looking into developing drinks infused with cannabidiol&comma; or CBD&period;<&sol;p>&NewLine;<p>CBD is the legal non-psychoactive compound found in the marijuana plant&period;<&sol;p>&NewLine;<p>As cannabis industries across the U&period;S&period; are seeing an economic boom&comma; companies are developing products with marijuana&&num;8217&semi;s legal sister CBD&period;&nbsp&semi;<&sol;p>&NewLine;<p><em>The Hemp Business Journal<&sol;em> predicts that CBD will be a &dollar;2&period;1 billion market by 2020&comma; this would be a 700 percent spike from 2016&period;&nbsp&semi;<&sol;p>&NewLine;<p>With that in mind&comma; Coca-Cola announced it&&num;8217&semi;s considering jumping on the CBD bandwagon&period;&nbsp&semi;<&sol;p>&NewLine;<p>&&num;8220&semi;Along with many others in the beverage industry&comma; we are closely watching the growth of non-psychoactive CBD as an ingredient in functional wellness beverages around the world&comma;&&num;8221&semi; said Coca-Cola on Monday&period; &&num;8220&semi;The space is evolving quickly&period; No decisions have been made at this time&period;&rdquo&semi;<&sol;p>&NewLine;<p>The beverage giant made the statement following a report by <em>BNN Bloomberg<&sol;em> that claimed that the company had been in discussions with the&nbsp&semi; Canadian cannabis company Aurora Cannabis&comma; according to &&num;8220&semi;multiple sources familiar with the matter&period;&&num;8221&semi;&nbsp&semi;&nbsp&semi;<&sol;p>&NewLine;<p>Both companies have not denied the report that said Coca-Cola is exploring the idea of a CBD-infused drink as a &&num;8220&semi;functional wellness beverage&period;&&num;8221&semi; The chemical CBD has been believed to relieve pain and anxiety for users&period;&nbsp&semi;<&sol;p>&NewLine;<p>&ldquo&semi;There is so much happening in this area right now and we think it has incredible potential&period; Stories like this are further validation of the massive global potential of the cannabis industry&comma;&&num;8221&semi; said Heather MacGregor&comma; Aurora spokesperson&period; &&num;8220&semi;As a rule&comma; we do not discuss business development initiatives until they are finalized&comma; however we have a responsibility to our shareholders to give proper consideration to all relevant opportunities that are presented&period;&&num;8221&semi;<&sol;p>&NewLine;<p>Following these statements&comma; marijuana stocks spiked&period; Aurora saw a 17 percent jump Monday&period;&nbsp&semi;<&sol;p>&NewLine;<p>&&num;8220&semi;Other companies with exposure to the cannabis market&comma; including Tilray and Scotts Miracle-Gro&comma; also gained on the week&&num;8217&semi;s first day of trading&period; Tilray climbed 10&period;2 percent and Scotts added 2&period;99 percent in U&period;S&period; trading&period; Canopy shares added 2&period;99 percent in Canadian trading&comma;&&num;8221&semi; writes <em>CNBC&period;<&sol;em><&sol;p>&NewLine;<p>After Coca-Cola&&num;8217&semi;s 2017 revenue was down by 16 percent&comma; the company vowed to focus on &&num;8220&semi;emerging categories&period;&&num;8221&semi; Apparently&comma; this includes the cannabis industry&period;<&sol;p>&NewLine;<p>Pepsi Co is also allegedly planning to get into the cannabis drink market too&period;<&sol;p>&NewLine;<p><strong>Author&&num;8217&semi;s note&colon;<&sol;strong> It looks like the soda companies are going where the money is&period; Feeding into addiction means money&period; It&&num;8217&semi;s similar to Juul&comma; an e-cigarette that pretends to be a smoking alternative&period; CBD drinks are pretending to be wellness drinks&period; Marijuana is as addictive as alcohol&period; About 10 percent of people who use it&comma; get addicted&period;&nbsp&semi;<&sol;p>&NewLine;

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