The Coca-Cola Co (NYSE:KO) Has Their Eye On Cannabis 

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Weed stocks got a boost Tuesday morning, from The Coca-Cola Co (NYSE:KO) of all places. Reportedly The Coca-Cola Co (NYSE:KO) is in talks with Aurora Cannabis Inc (OTCMKTS:ACBFF) and considering producing a CBD-infused "wellness drink" for future production. According to a statement from Coca-Cola Co (NYSE:KO) the company is keeping a close eye on the development of these beverages, although a spokesman was quick to note, "No decisions have been made at this time.".

The consideration of a CBD-infused beverage may come as a surprise announcement, but it makes sense looking at the broader scope of things. With the legalization of recreational marijuana in Canada, a perfect testing ground for a new wave of products was created. Consider also the fact that sales of sodas and other sugary beverages has been on the decline for over a decade, while the demand for health and wellness drinks has been on the rise.

The Coca-Cola Co (NYSE:KO) has been taking note of this trend for some time and has not been shy about riding it. Over the years they have acquired and added brands like Smart Water, Honest Tea, and Powerade to capitalize on the growing demand for healthier beverage alternatives to soda. Even their namesake soda, Coca-Cola, has many low-calorie or no sugar variations on it's "classic" formula. 

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It also used to be liquid cocaine.

Why Weed?

So, we have one of the newest-yet-not-new-at-all markets on the planet emerging right now. The marijuana industry will be huge in the coming years. Last year somewhere around 55 million U.S. citizens admitted to using marijuana according to surveys. that's 20 million more marijuana users than tobacco users and the 50 million figure is probably low. The only thing left to do now is to legalize it, and according to Pew Research, at least 61% of U.S. adults support marijuana legalization. It is safe to say that marijuana is mainstream and federal legalization in the U.S. is inevitable given time. With Coca-Cola Co (NYSE:KO) beginning their observations now they could potentially position themselves to be a power in the market when the time comes.

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Why CBD?

CBD is another chemical in marijuana, like THC but without the psychoactive effects. Instead, CBD has been shown to have properties of anti-inflammation or anti-nausea. It has even been shown to get rid of seizures in a concentrated form. Basically, it has all of the health benefits but none of the intoxication. It also has another important benefit, reduced legal scrutiny. Since CBD does not intoxicate you and it's extremely unlikely an overdose will, or could even, occur, it's likely CBD beverages will be sold much like any other health drink, over the counter. And that is just perfect for The Coca-Cola Co (NYSE:KO).



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