Marijuana News Today
The marijuana news today is familiar in that another massive beverage producer is said to be looking into the cannabis industry. But what’s unique is that this beverage producer is not a “Big Alcohol” company, but instead is one of the largest soft drink producers in the world: The Coca-Cola Co (NYSE:KO).
Reports are coming in that Coca-Cola is in talks with Aurora Cannabis Inc (OTCMKTS:ACBFF, TSE:ACB) to produce non-alcoholic, cannabis-infused beverages. (Source: “Coke, Aurora Cannabis in talks to make marijuana-infused drinks: BNN Bloomberg,” CNBC, September 17, 2018.)
As a result, Aurora Cannabis stock has been climbing swiftly this morning, while KO stock hasn’t seen much movement since the talks were announced.
Should the partnership come to fruition, the two companies will likely develop health-focused beverages to ease inflammation, pain, and cramping.
“Along with many others in the beverage industry, we are closely watching the growth of non-psychoactive [cannabidiol] as an ingredient in functional wellness beverages around the world,” said The Coca-Cola Co. “No decisions have been made at this time.”
Aurora also declined to give specifics about a potential deal, but did say, “[we have] expressed specific interest in the infused beverage space, and we intend to enter that market.” (Source: Ibid.)
This marks the first time a non-alcoholic beverage company has looked into getting involved in the marijuana sector.
What This Means for Marijuana Stocks
This news is massive. We’ve already seen just how impactful large investments from multinational companies can be on the marijuana sector.
Constellation Brands, Inc. (NYSE:STZ) put $3.8 billion into Canopy Growth Corp (NYSE:CGC) and the entire marijuana stock market shot up, with many stocks gaining double- or even triple-digits in a few short weeks.
If Coca-Cola (or another company of a similar size) were to do the same, expect to see another huge run among marijuana stocks.
Interest in the legal marijuana industry is growing fast. More and more companies from a variety of backgrounds are showing interest in the cannabis business. It’s no longer limited to Big Alcohol companies; the floodgates have opened for a variety of larger investors to enter the market.
If several big investments came into the pot industry one after the other, I could see many stocks doubling their value in a matter of weeks.
The increased capital flooding the cannabis market will facilitate expansion, sure, but more importantly, the trend speaks to the marijuana industry’s growing acceptance in the eyes of other types of businesses.
Whereas before, a stigma tailed the marijuana sector, now it’s growing more apparent by the day that this stigma is fading (and giving way to massive inflows of cash). And as the cash rolls in, stock values will rise.
Aurora Cannabis Stock
Being the main target of talks with Coca-Cola, Aurora Cannabis stock has naturally seen a huge jump in value at the beginning of this week. In early-morning trading today, the stock was up by about 15%.
Investors are very interested to see how these talks pan out. While both companies were non-committal about the possible partnership, the very fact that talks are taking place is a huge step forward for the marijuana industry.
If a deal comes about wherein the value is anywhere near that of the Constellation Brands investment in Canopy Growth, expect to see another jump in the value of the overall marijuana industry.
Aurora has been busy this year, making acquisitions left and right, having entered the South American market with its acquisition of ICC Labs Inc (OTCMKTS:ICCLF, CVE:ICC) in a deal valued at CA$290.0 million.
A partnership with Coca-Cola would not only be a powerful move for the long-term ACBFF stock forecast, but would also send the stock flying in the short term.
Meanwhile, the Aurora Cannabis stock price has risen by about 56% over the past month.
While Aurora Cannabis stock has been grabbing headlines today, we can’t talk about the marijuana stock market without mentioning Tilray Inc (NASDAQ:TLRY).
Tilray stock was once again up big in early-morning trading, jumping by about seven percent after ending last week on a sour note.
Overall, however, no company can compete with the gains that TLRY stock has made. In fact, Tilray makes Aurora Cannabis’s 56% jump over the past month look underwhelming; the former is up nearly 300% in the past 30 days.
Investors have tripled their investments in Tilray stock in just 30 days. That kind of return is what we all dream of.
Of course, Tilray can’t maintain this run forever, but as of now, there is no better short-term play in the marijuana stock market.
TLRY & ACBFF Stock Performances
On the chart below are the recent performances of Tilray Inc stock (blue line) and Aurora Cannabis Inc stock (black line).
Chart courtesy of StockCharts.com
The marijuana news today features a pivotal point for the cannabis industry as it sees more investment from—and partnerships with—other types of massive companies.
The Coca-Cola Co is the latest—and perhaps most important—big corporation to look into the marijuana sector. Not only does the company have the money to spend, its interest shows that the cannabis sector’s appeal is growing beyond pot smokers and beer drinkers—in other words, beyond its reputation as a vice industry.
This growing acceptance is going to pay off massively for marijuana companies, especially if other large investors pour much-needed capital into the sector.