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Aurora has joined the league of the giant companies interested in making a fortune out of Cannabis. The Canadian-based company is making a major comeback with rumors indicating a highly-possible deal- A deal with the big soda company famously known as Coca-Cola.
The future is brighter for this company considering it is in the list of the few companies from the Great North with recognition in the US stocks exchange. The expected deal is such a blockbuster.
What about the deal?
Coca-Cola is working on making CBD-infused beverages, and its possible alliance with Aurora will settle the bill. There have been mixed reports about if this deal will indeed take place. We, however, believe it will inevitably happen, as far as timing this is still unknown. So what should we expect of this alliance? Is it good for the industry?
Vivien Azer, a senior Wall Street analyst with Cowen, sums up that “it makes sense for both companies to work together since Aurora has interests of joining the cannabis-infused beverage market.”
What do Aurora and Coca-Cola spokespeople have to say?
Although Kent Lander, a Coca-Cola spokesman did not confirm any talks with Aurora in a detailed statement to Bloomberg, he says that Coca-Cola is observing the growth of CBD use in beverages for wellness. However, he adds that they have not made any decisions concerning the same. The response is different for Heather Mac Gregor who is an Aurora spokesman. He says that Aurora has interests in the infused beverage market and they intend to enter the market soon.
What are the benefits of CBD-infused beverages?
According to Bloomberg, Coca-Cola has interests in developing a world beverage infused with CBD. CBD is a non-psychoactive component found in the cannabis plant. Alcoholic drinks containing Cannabis has a “buzz” effect on its users. The “buzz” is common among Marijuana users. CBD use in beverages, on the other hand, is supposed to bring in medical benefits of relieving pain, inflammation, and cramping among others.
Are the sources reliable?
Well, according to reliable sources, the Aurora and Coca-Cola talks are still in its primary stages. Although both companies have remained mum about the deal, we can all agree that something is cooking in the kitchen.
So far, Coke has not refuted the claims of the discussions.
In fact, through their spokesman, they declared their interest in a partnership with Aurora but said there was no deal on the table yet. Aurora failed to confirm the talks but confessed that they indulge in discussions with all industry players from time to time. The company further reports that they currently have no agreement or partnership with any beverage company.
How has this possible deal affected Aurora and Coca-Cola shares?
As all this action was happening, the shares of Aurora Company increased in the stocks market. After Bloomberg announced this deal, the shares of both companies rose instantly. In 2018 alone, Aurora shares jumped to 16.86% while Coca-Cola’s shares by 0.72% in the New York stocks exchange.
Future of the CBD industry
CBD industry has been on the rise ever since researchers from different fields found out that it contains numerous medical benefits. Currently, the US and Canada have set the path for many countries by legalizing Cannabidiol use for medical use.
According to Hemp Business Journal, the CBD industry is expected to reach USD 2.1 billion up from USD 205 million in 2015. They base their argument on the ever-growing CBD applications and newer countries legalizing their growth and use.