While The Coca-Cola Company (NYSE:KO) was taking a closer look at the CBD-infused beverage space back in September, it seems the Coke’s interest in cannabis has subsided for now.
“We don’t have any plans at this stage to get into the space. So that’s kind of where we are,” said James Quincey, according to earnings call transcripts from FactSet.
This comes as no surprise since an entry into the CBD-infused beverage space would have been premature for the beverage behemoth.
As proven by the company’s recent definitive agreement to acquire coffee brand Costa Limited, The Coca-Cola Company clearly likes getting into new beverage spaces through acquisition.
Sure, Coca-Cola could have launched its own coffee brand to compete with Costa. However, it is far easier for Coca-Cola to acquire a well-known brand and apply its distribution and marketing infrastructure to achieve further growth and synergies.
If we had to guess, that’s how Coca-Cola will enter the CBD-infused beverage space. That is when and if they ever enter the CBD-infused beverage space.
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