Coca-Cola is closing in on a deal with Aurora Cannabis to add cannabis to canned soft drinks in hopes of taking a slice of the booming cannabis market, the Daily Mail reported. The news sparked a lot of media coverage. Under the headline "Coca-Cola develops drug drink", they hyped and misled the public, causing quite a commotion and heated discussion.

In fact, Coca-Cola aims to develop functional health drinks that contain CBD, which is a health-focused drink that can relieve inflammation, pain and spasms.

This “hemp” is not the “marijuana”

As for the much-hyped drink containing "cannabis", in fact, this "cannabis" is not the "marijuana". One of the reasons marijuana is listed as a drug is that it contains a large amount of the psychoactive ingredient THC, which has a hallucinogenic effect. The content of THC in industrial hemp is less than 0.3%, and the cannabinol (CBD) it contains has extremely high medicinal value (it can treat depression, epilepsy and other diseases). Currently, CBD is used as raw material for 4 hemp drugs approved for market in the United States and the European Union.

There are huge differences in planting conditions between the two: most of the drug cannabis is grown in greenhouses, while most of the industrial hemp is grown in fields, which can adapt to various climatic environments. In addition, industrial hemp is used in fields including textiles, papermaking, food, medicine and health, and was recognized by the World Health Organization at the end of 2017 and included in the international list of uncontrolled substances. There are currently 115 types of hemp that can alleviate or treat diseases, and medical marijuana trials are underway in various countries.

Official response: it is actually a functional health drink containing CBD

A Coca-Cola spokesperson said: "we, like many in the beverage industry, are closely following the global growth of nonpsychoactive CBD as a functional health beverage component." Coca-Cola aims to develop health-focused drinks that reduce inflammation, pain and cramps.

For Coca-Cola, revenue began to decline in 2012, with operating profit of $7.501 billion last year, down 13% from a year earlier. In the era of advocating "natural" drinks, Coca Cola has to face more fierce competition. How to make "healthy" drinks that meet the public demand? Non-psychoactive CBD, or functional cannabis beverages, may be a way out.

If Coca Cola signs a contract with Aurora, it will become the first large soft drink company to enter the industrial hemp market. The partnership with Aurora Cannabis could lead Coca-Cola to sell drinks infused with CBD, which has health benefits such as reduced inflammation, pain and cramps. Coca Cola may use cannabidiol (CBD) to develop these drinks. CBD, a non-psychoactive ingredient found in hemp, is said to help relieve pain without knocking users off their feet. People close to the talks said Coca Cola and Aurora are "making good progress" toward a deal, Bloomberg News reported, adding that "the drink will be more like a recovery drink".

Industrial hemp drinks market has huge potential

Specifically, the industrial hemp beverage market has huge potential, and each giant has its own layout. In addition to Coca Cola's cross-industry agreement with the Cannabis manufacturer Aurora Cannabis, the Corona brewer Constellation Brands has invested $4 billion in Canopy Growth. Bank of Montreal has invested $175 million in Canopy Growth Corp, a marijuana manufacturer. Labatt Breweries, ABInbev's subsidiary in Canada, will partner with Tilray for $50 million each to develop non-alcoholic beverages containing the non-psychoactive compound CBD in hemp. Altria, a cigarette maker owned by Marlboro, has agreed to acquire a C$2.4bn stock in Canadian cannabis company Cronos. Heineken's Lagunitas brand launched an industrial hemp drink in California in 2018.