Good Morning All. Let me tell you a story about s
Post# of 85490
Rumor has it Coca-Cola is poised to join the rush to CBD. One of the truths about the rapidly expanding CBD market is that its sudden expansion caught nearly every major corporation by surprise. Why? Major corporations were caught off-guard because the market expanded organically and by word of mouth advertising as the consumers themselves created the market. And, because the tail wagged the dog some of the biggest dogs are struggling for traction with CBD.
Perhaps one of the biggest is Coca-Cola. Coca-Cola was said to be courting Canadian based Aurora Cannabis according to Forbs, but a deal has yet to be announced. Although each of them is said to still have an interest in the other. That said, I am not trying to promote either company. Instead, I want investors to understand the importance of this trend.
I know Coca-Cola well, and can tell you this company has been doing research for years aimed at producing a PET bottle for their products utilizing hemp. That research is still on-going.
What makes Coke ideally suited for the U.S. CBD market is that it has bottling plants in every state. This means a CBD beverage from Coca-Cola has the potential to create a huge demand in the CBD market, and that demand could easily exceed supply.
Moreover, Coca-Cola would likely be an aggressive entrant into the CBD market where it would expect its brands to dominate. And not just because Warren Buffett is by far the company’s largest investor (holding something like 100 million shares). It should be noted that Buffett owned or operated companies were well represented at Hope Global Forum (at least four companies that I know of).
Coca-Cola is likely to demand major CBD brand success because it has 20 different brands that generate more than a billion dollars in sales per year (each).
In my opinion, it is time we start to pay attention to what is about to take place. Market share and distribution together with logistics is about to be the theme of the day, and we are in this market with the largest distribution network by far.
Kgem