The Coca-Cola Company says it is "closely watching" the expanding use of a cannabis element in drinks, another sign the controversial product is getting more acceptance in mainstream culture.

The statement came after reports the beverage giant was in talks with a Canadian cannabis company to create a health drink infused with cannabidiol, a naturally occurring non-psychoactive compound derived from the cannabis plant.

Shares of the company, Aurora Cannabis Inc, closed up nearly 17 per cent on the Toronto Stock Exchange after the report.

Spokespeople for the companies declined to comment on the report but acknowledged their interest in that segment of the cannabis market.

Cannabidiol, or CBD, does not produce the high commonly associated with marijuana.

It is believed by many to have anti-inflammation and pain-relieving properties, and numerous CBD-infused products have emerged recently.

Aurora spokeswoman Heather MacGregor said her company "has expressed specific interest in the infused-beverage space and we intend to enter that market".

Coke spokesman Kent Landers said the beverage giant had made no such decision.

"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," Mr Landers said.

Coke's interest is another indication of the growing acceptance of cannabis by established companies and of the importance of Canada to the development of those businesses.

Marijuana becomes legal across Canada on October 17 and cannabis companies from the US — where marijuana remains illegal at the federal level — have flocked to Canada to raise funds and establish businesses there.

American companies interested in making a play in the cannabis space can try things out in Canada without risking doing something illegal at home.

Constellation Brands, a giant spirits company that counts Corona beer among its labels, bought a multi-billion-dollar minority stake in Canopy Growth, a Canadian medical marijuana producer.

Coca Cola was a latecomer to the energy-drink boom and is keen to enter the cannabis realm early. ( ABC News )

Coca Cola's statement shows the company has learned from its past missteps picking up on new drink trends, said Ali Dibadj, a senior analyst at AllianceBernstein with an expertise in US beverage and snack food companies.

"The company has been caught flat-footed in the past in not keeping up with trends in beverages," Mr Dibadj said.

"They missed the energy drink phenomenon, they missed — and then had to buy into — the functional waters like Vitamin Water and coffee.

"I think what they're saying is what they should be saying on this very new and emerging beverage."

Coca-Cola, quite famously, used to contain cocaine — exactly how much is the topic of much contention — via its coca leaf extract, but has been cocaine free since 1929.

AP/ABC