Cannabis shares lost some of their early gains Tuesday after Coca-Cola Co. CEO said the beverage giant has no plans for the sector, disappointing hopes that global beverage companies would be willing to sacrifice their capital and marketing power Market to bring burgeoning industry.
KO, + 1.74%
said last month that they are targeting the cannabis sector, specifically the market for CBD drinks, or those containing non-psychoactive ingredients that are included in the market Cannabis found to have health benefits.
"Space is developing fast, no decisions were made at the time," Coca-Cola said at the time.
The comment furthered the speculation that Coca-Cola would follow Constellation Brands Inc.
the $ 4 billion in Canada's Canopy Growth Corp. invested
CGC, + 2.57%
WEED, + 2.07%
There have been reports competing with Diageo PLC
DGE, + 0.39%
also searched for targets. The market for CBD drinks is expected to increase to more than $ 2 billion within two years, according to Science Daily.
Coca-Cola boss James Quincey was clear in his answer to an analyst question about winning the company, "We have no plans to go into space at this stage, so that's where we are," Quincey said aloud a fact-set transcript of the call.
Jason Wilson, President of Budding Equity Asset Management and partner in the ETFMG Alternative Harvest ETF, said it was not surprising that Coca-Cola was holding back for now and should not be interpreted as being unable to enter the sector ,
"Unlike the beer, wine and spirits sectors, cannabis or CBD-soaked beverages pose no immediate threat to the sale of non-alcoholic beverages. Therefore, it makes sense that a large, multinational, non-alcoholic beverage company like Coca-Cola would wait, "he said in e-mail comments. "In contrast, sales of alcoholic beverage manufacturers and distributors are more directly threatened by cannibalization, which is why we have seen companies like Constellation Brands and Molson Coors
TAP, + 2.30%
enter the cannabis room.
Read: Dubious IPO IGC has suspended trading, shares are to be delisted
A Guide to Pot Stocks: What You Need to Know to Invest in Cannabis Companies  The Horizons Marijuana Life Sciences ETF
HMMJ, + 0.82%
was last increased by 1.1%, while the ETFMG Alternative Harvest ETF
MJ, + 1.10%
Canadian cannabis stocks were mixed. Tilray Inc.
shares were down 1%, Aleafia Health Inc.
ALEAF, + 1.56%
ALEF, + 0.00%
was 1% lower, but Aurora Cannabis Inc.
ACB, + 3.35%
ACB, + 3.90%
was 2% higher. 22nd Century Group Inc.
had dropped 3.6%
Among the winners of the meeting was Canada's Aphria Inc.
APH, + 4.07%
gained 5.4% after trading on the New York Stock Exchange on November 2. The company, currently listed on the Toronto Stock Exchange and the US OTC market, is listed under the ticker symbol "APHA."
Also read: Everything you need to know about CBD, the cannabis elixir that you do not care high
Chief executive Vic Neufeld said that the company plans to use Canada, the cannabis legalized for recreational use for adults on 17 October to expand to Latin America, the Caribbean and Europe.
Cronos Group Inc.
CRON, + 2.79%
rose 3.2% and Canopy Growth Corp. rose 1.7%.
US companies MedMen Enterprises Inc.
was 0.3% and GrowGeneration Corp.
GRWG, + 0.16%
had dropped by 1%.
had lost its initial gains of 6%.
Canaccord analysts covered over two cannabis games in Nevada on Tuesday with Canadian listings, both attributing speculative buy ratings. Planet 13 is a vertically integrated operator with a retail distribution and growing facilities and is planning a Las Vegas "superstore," just outside the strip, analyst Bobby Burleson wrote in a note. 1933 Industries is a producer and manufacturer of cannabis flowers and concentrates with a variety of branded products and a wholesale distillate supply to the Nevada vapor market.
"Although PLTH and TGIF are targeting different points in the legal cannabis supply chain, both companies offer differentiated business models that are well positioned to benefit from the strong recovery of the recreational use market in Nevada EV / EBITDA base," Burleson said.
The S & P 500
SPX, + 0.72%
was flat and the Dow Jones Industrial Average
DJIA, + 0.98%
had risen by 0.2%.
In case you missed it: Pot Stocks Take Another Down After the Worst Week in the Sector in Nearly 9 Months
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