Coca-Cola Co (NYSE:KO) is closely watching the cannabis-infused drink market. This was announced after a media report said that Coca-Cola and Canada’s Aurora Cannabis Inc were corresponding.

Canadian financial channel BNN Bloomberg, reported the possible product collaboration. This may drive new interest in Coca-Cola as it faces a slump in demand because of its not so healthy beverage.

The partnership between the two companies could be one of the first of its kind. It would make Coca-Cola the first of the major non-alcoholic beverage manufactures to delve into the cannabis market.

Coca-Cola is in “serious talks” with Aurora Cannabis to develop a cannabis-infused beverage.

The non-alcoholic beverage would be infused with cannabidiol, or CBD, the non-psychoactive chemical found in marijuana plants. Additionally, the beverage is likely to be more health-focused, reducing inflammation, pain and cramping.

The Hemp Business Journal predicts significant growth in the cannabidiol market. In fact, in 2015, th market was valued at US$202 million. By 2020 market value is set to grow to a staggering $2.1 billion.

Interestingly, a spokesman from Coca-Cola declined to comment about the Aurora partnership. That said, in an emailed statement to BNN Bloomberg, he said:

“along with many others in the beverage industry, we are closely watching the growth of non-psychoactive CBD as an ingredient in functional wellness beverages around the world. The space is evolving quickly. No decisions have been made at this time.”

Earlier this year, the UK government legalised medicinal cannabis. After being advised by the Advisory Council on the Misuse of Drugs, doctors will be permitted to prescribe medicinal cannabis for its therapeutic benefits within months. However, doctors will only prescribe products provided they meet safety standards.

Recent studies have shown that cannabis can be useful for the treatment of chronic pain, spasticity, nausea and vomiting in chemotherapy and drug-resistant epilepsy, just to name a few conditions.

Moreover, we reported that UK’s first medicinal cannabis investment vehicle, Sativa, has appointed a new Director and CFO.

With the UK’s legalisation of medicinal cannabis, opportunities in the market are opening. Could Coca-Cola be the first to capitalise on this if the non-alcoholic cannabis-infused beverage is marketed for its health benefits?