Billionaire investors Warren Buffett and Charlie Munger, who lead legendary holding company Berkshire Hathaway, told FOX Business on Friday that a partnership between Coca-Cola and the cannabis industry would be a serious problem.
“It would be a big mistake,” Munger told Liz Claman during the Berkshire Hathaway Annual Shareholders Meeting. "[Coca-Cola has] got such a wholesome image and cannabis doesn’t. It’s that simple.”
Buffett, whose Berkshire Hathaway is Coca-Cola’s largest shareholder, said he wouldn’t divest his shares of the beverage giant it if decided to get into the legal cannabis industry.
"There's something in everybody's mind in the world practically about Coca-Cola...I'm not sure that you would want to muddy that image a little bit," he said.
|THE COCA-COLA CO.
In October 2018, Coca-Cola CEO James Quincey brushed off any rumors that the soft drink maker is considering partnering with cannabis companies.
“We don’t have any plans at this stage to get into the space,” Quincey said during an earnings call. "So that’s kind of where we are.”
Coca-Cola faces stiff competition as other beverage brands explore drinks infused with cannabidiol (CBD), a non-psychoactive compound in marijuana.
Cannabis industry analysts at the Brightfield Group predict the marijuana CBD market could reach upwards of $22 billion by 2022.