Coca-Cola is 'closely watching' the cannabis space - and is reportedly eyeing a deal with one of Canada's biggest producers

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• Coca-Cola has been in talks with Aurora Cannabis to produce CBD-infused drinks, Bloomberg reported Monday.
• Shares of Aurora popped more than 15% on the report, but the company did not confirm the discussions.
• An increasing number of beverage companies are rapidly investing in the marijuana space as the drug gains legalization in more jurisdictions.

Coca-Cola is said to be in discussions with Aurora Cannabis to develop beverages infused with CBD, one of the non-psychoactive compounds found in cannabis, Bloomberg News reported Monday.

While neither company confirmed the talks, Coca-Cola said it was "closely watching the growth of non-psychoactive CBD as an ingredient in functional wellness beverages around the world."

"The space is evolving quickly," spokesman Ken Landers told Bloomberg. "No decisions have been made at this time."

Aurora, which did not respond to a request for comment from Business Insider, was up more than 15% in early trading Monday following the report. Coca-Cola was higher by about 0.4%.

Coca-Cola's potential foray into marijuana beverages follows a two investments by Constellation Brands, the conglomerate behind drinks like Corona and Svedka, totaling more than $4 billion, into Canopy Growth, the largest publicly traded marijuana firm.

Molson Coors has also entered the marijuana space through a joint venture with Canada's Hydrotherapy Corporation to make non-alcoholic, cannabis-infused beverages.

Monday's report also catalyzed a rally in other marijuana stocks. Tilray was up about 7% while Canopy Growth and Cronos Group were both up about 2%. Despite Monday's pop, shares of Aurora are down 31% this year.