Beverage giant Coca-Cola refutes claims that it wants to enter the CBD market as claims by a video that surfaced last week (now pulled down) claimed they had a prototype of the can to the beverage.
- A video by a blind Canadian, Gabor the Blind Guy, got a buzz after its content claimed to be a can that Coca-Cola would use to store its CBD infused drink
- The video, currently pulled down, demonstrated how it was hard for children to open the can, making sure that the new beverage was only designated for adults
- Coca-Cola, through its spokesperson, denied these claims stating that they have no intention of venturing into the CBD market.
Coca-Cola, the Atlanta based beverage giant, has denied rumors that the firm is planning to venture into the CBD business. From a statement released to newsrooms, Coca-Cola spokesperson Kent Landers quashed the rumors saying they are irrelevant and untrue.
“Coca-Cola has no plans to enter the CBD market, that has always been our position, and it still stands,” said Kent.
The allegations come after a video, since deleted, showing a Coca-Cola can with a childproof lid was posted online. The man behind the video, Gabor the Blind Guy, claimed to have obtained the can from his father, a head engineer for a certain company that manufactures cans for food and beverage companies, Coca-Cola is one of them. He says that the can is proof that Coca-Cola is preparing to start manufacturing a drink that will contain CBD extract.
Gabor narrated that recently, his father was approached by the Canadian based Coca-Cola company to help design a machine that will put childproof caps on the said drink to be manufactured.
“Coca-Cola is planning on releasing a new drink in Canada that contains CBD extracts,” said Gabor.
According to him, the cap design is meant to prevent little kids from popping the cans open, so his dad was approached to design a cap that will avoid such a scenario. According to the video, the alleged partnership was a deal with Aurora Cannabis Inc, a company based in Europe.
This is not the first time the beverage company is being linked to venturing in CBD. A year ago, the beverage giants were said to be looking to penetrate the cannabis drinks. This led to massive stock gains for cannabis companies at that time.
It is not surprising that Coca-Cola is being linked to the CBD business. Do you wonder why Coca-Cola is willing to risk it all and venture into such a reputation ruining their business? CBD is an established business, booming, and with transactions that exceed billions of dollars. CBD is literally finding its way in almost everything, and considering a company driven by profits, who are we to judge? Coca-Cola might want to tap this lucrative market that could lead to the creation of a leading category of a drink. Though it’s CEO on previous speculations earlier in October denied the allegations stating,
“We don’t have any plans at this stage to get into space. So that’s kind of where we are.”
Reasons to Enter Into CBD Business
People have been drinking less soda in recent years, and Coca-Cola is looking to diversify its products. CBD is one of the products that prove to be very crucial to help beverage companies land a foot in the fast-growing market. According to Cowen Investment Firm, the marijuana industry will generate over 75 billion dollars by 2030 if it is legalized nationwide. Coca-Cola, seemingly, doesn’t want to be left out of this breathtaking deal!
As speculations continue to surge, people are having a divided take on a potential Coke cross over. Warren Buffet, who has 10% shares in Coca-Cola, thinks it will be a wrong move for the beverage company to venture into CBD business.
“It will honestly be a mistake for Coca-Cola to venture in the CBD market,” he said. “They have a perfect image and doing that will ultimately damage it,” he added.
Coca-Cola is arguably the biggest beverage company in the world, with 94% of the population recognizing its brand. It has over 500 different products, and according to Buffet, venturing in CBD might bring its reputation down to the ground.
Americans have gone crazy over CBD products. A report by Gallup earlier in 2019 revealed that one in seven Americans had taken a CBD product once in the past two years, with many more using it daily. The survey further showed that people used CBD most for stress and anxiety, with a good number of them using it for insomnia and pain. CBD is in a perfectly poised position to be an additive for beverages, though the legalities around it will as well push away most investors.