TERRY BOOTHEven although he remains the mother of the topic, Aurora Cannabis’ (Quote, chart TSX: ACB) Terry Booth says a deal with Coca-Cola would be great not only for its pot company but also for the marijuana space in general, as it would help legitimize cannabis as a global company.
It was announced yesterday that Aurora, one of the leading names in Canada’s fledgling cannabis sector, spoke with Coca-Cola about the development of cannabis-infused beverages. That discovery caused Aurora’s shares to gain over 16 percent on Monday.
According to reports, Coca-Cola is interested in developing beverages infused with CBD, the cannabis compound believed to have pain relieving and anti-inflammatory properties, rather than beverages infused with THC, the psychoactive compound in cannabis.
“Multiple sources have told me that Coca-Cola is having serious conversations with Aurora Cannabis and that the conversations are about CBD drinks,” journalist David George-Cosh told BNN Bloomberg, who broke the story. “It’s more of the recreational drink corner that Coca-Cola wants to pursue.”
The news follows a month-long period of time with pot stocks heating up, in part due to news in mid-August that a new agreement has been reached between Canopy Growth and beer and alcohol company Constellation Brands, an investment by the beverage giant of $ 5 billion. That came after cannabis company HEXO announced in early August that it had partnered with Molson Coors Canada to develop cannabis-infused beverages.
All the interests of big-name alcohol and beverage manufacturers can only benefit the cannabis room, says Booth, CEO of Aurora.
“It was only a matter of time before the big beverage companies got not just off alcohol but also off the Coca-Cola-Pepsi-Cola side of the fence,” Booth told BNN Bloomberg on Monday. “It’s a big impact. It legitimizes what we’re up to. It legitimizes this as a large global company. “
Aurora was one of the most active companies in the pot sector last year, taking over two large producers in CanniMed and MedReleaf along with the South American cannabis company ICC Labs.
Regarding a potential Coca-Cola deal, Booth said, “Coca-Cola would be a great partner, but we cannot comment on speculation right now. There are a number of beverage companies in the room, and we’ve spoken to at least three different companies in the past three months. “