For all this company's disappointments that have been well laid out on chats here, the news of expanding their vape smoking sales doesn't excite me as much as the broader opportunities out there in the market.
I'm calling for a deal with Coke for a number of reasons.
For this stock to go ballistic it needs to execute its stated production capabilities - 100 liters per day. You can only smoke so much, so it's getting into the food additives market where they can really capitalize on their sales.
Coke might seem a few steps too far for most, but if you look at the history of the company it's a perfect fit.
In short, Coke is a now flat brand in a world that's woken up and is in need of some fizz to get some excitement back about it. Just like in it's earliest days, additives were a key component until regulation came along.
"Coca-Cola (Coke) had cocaine in it, in varying amounts, from 1886 – 1929. At the time cocaine was
and treated as a
. From 1900 – 1929 opinion turned against cocaine, but Coke continued to use trace amounts of cocaine and “spent” coca leaves to maintain its flavor and trademark. Today Coca-Cola uses caffeine rather than cocaine."
Some will argue ESE's offering is a chemical, but when you look at Coke's branded range of diet drinks, you could also easily argue Coke has had little interest in chemical additives and the health of its consumers.
On the other hand, ESE claim their product is made from 100% natural ingredients and doesn't get you high while having some pleasant side effects, so if that were the case it looks like it could be an exciting addition to the tired Coke range.
Canna-Cola?
