Coca-Cola India plans to enter alcoholic beverage segment with Lemon-Dou: Report

Coca-Cola India has been reportedly working on entering the alcoholic beverage segment in the country with the introduction of Lemon-Dou, a global alcoholic ready-to-drink beverage.

The company is currently conducting pilot tests for Lemon-Dou in select regions such as Goa and parts of Maharashtra, reported The Economic Times. This marks Coca-Cola's maiden venture into alcoholic drinks in the Indian market, expanding its product portfolio beyond the realm of non-alcoholic beverages.

Lemon-Dou, originating from Japan where it is known as a chuhai cocktail, is a distinctive blend of shochu, a distilled liquor similar to brandy and vodka, combined with the zesty flavor of lime. Coca-Cola plans to price the Lemon-Dou at Rs 230 for a 250 ml can during the test launch phase.

A Coca-Cola India spokesperson quoted in the ET report confirmed the pilot testing of Lemon-Dou and highlighted that the preparation and distribution of these alcoholic beverages are carried out independently in dedicated facilities separate from those producing non-alcoholic, ready-to-drink beverages.

Coca-Cola's foray into the alcoholic drinks segment in India comes more than three decades after the company re-entered the Indian market. The decision aligns with Coca-Cola's vision as a "total beverages company," catering to diverse consumer preferences beyond soft drinks.

"We're very clear what kind of beverages consumers are demanding. I call it fuel for the body and the mind,” Manolo Arroyo, Coca-Cola’s global marketing chief, was quoted as saying in a recent ET interview. Arroyo further highlighted that Alcohol is a very big category and “we have on purpose decided to experiment”.

While Coca-Cola is gradually entering the Indian alcoholic beverage market, executives familiar with the company's plans suggest a cautious approach, considering the complexities associated with large-scale alcohol distribution and manufacturing in India. Moreover, the alcoholic beverage sector in India is highly regulated and heavily taxed, with pricing controlled by individual states.

Coca-Cola's Lemon-Dou has previously been introduced in Japan in 2018 and is available in select countries such as China and the Philippines.

The company is exploring various opportunities in the alcoholic beverage space globally, including collaborations with spirits makers like Pernod Ricard. In October, Coca-Cola and Pernod Ricard announced a global collaboration to launch Absolut vodka and Sprite as a ready-to-drink pre-mixed cocktail, starting in 2024.