The CEO of Coca-Cola said during an earnings conference call with analysts on Tuesday that the company “doesn’t have any plans at this stage” to enter the cannabis market.
Several weeks ago there was a lot of noise about the liquor companies entering the cannabis industry. A couple of companies invested in the Canadian cannabis sector just before the legalization.
One of the biggest stock purchases came about when Constellation Brands bought a huge share in Canopy Growth.
Aphria’s deal with Altria even leaked on the internet the day earlier.
At one point in time, there was speculation whether Coca-Cola and Pepsi would get in on the cannabis market, or at least the CBD-infused drinks.
No plans, yet
CEO James Quincey said during an earnings conference call with analysts on Tuesday that the company is not planning anything at this stage.
At the time in September, Coca-Cola was rumored to be looking into the CBD-infused drinks, and possibly some type of partnership or partial acquisition with Aurora Cannabis.
Aurora Cannabis began trading on the NYSE just a few days ago, and its shares rallied on Tuesday nevertheless the bad news.
PepsiCo is also rumored to be looking for a potential partner which would help them in developing a state-of-the-art cannabis drink.
With the cannabis outlook in the US getting better year in and year out, it is very likely that the federal legalization in the US will happen soon.
Large companies are always on the lookout for ways to stay ahead of the game. It wouldn’t be much of a surprise if we saw them partner up before legalization in the US finalizes.
Seeing how some analysts are predicting that the US will go through with federal legalization around 2022-2023, it is not a far reach to assume that they are actively looking out for partners as we speak.
The Canadian market will likely allow for infused drinks and edibles as of October 2019, which will be a large enough market for these giants to take an interest in.