Coca-Cola India has ventured into the alcohol market with its inaugural foray, debuting Lemon-Dou, a global alcoholic ready-to-drink beverage. The company is currently conducting pilot tests for this product in Goa and certain regions of Maharashtra.
A spokesperson from Coca-Cola India verified that the company is currently conducting pilot tests for Lemon-Dou, a beverage from its global portfolio, in select states across India. Lemon-Dou is a blend of shochu, a distilled liquor akin to brandy and vodka, combined with lime.
“The preparation and distribution of these beverages is done separately in dedicated and independent facilities in India, which are different from the facilities that prepare and distribute its non-alcoholic, ready-to-drink (NARTD) beverages,” the Coca-Cola India spokesperson said in an email.
Lemon-Dou, recognized as chuhai, is an alcoholic cocktail originating from Japan. During its test launch phase, it is available at a price of INR 230 for a 250 ml can.
“We have deliberately chosen to explore within the expansive category of alcohol,” stated Manolo Arroyo, Coca-Cola’s global marketing chief, in a recent interview. “We’re very clear what kind of beverages consumers are demanding. I call it fuel for the body and the mind.”
In 2018, Coca-Cola introduced Lemon-Dou as its first ready-to-drink alcoholic beverage in Japan, advancing its positioning as a “total beverages company.”
Coca-Cola, the largest soft drinks company in India, offers a range of fizzy drinks including Coke, Sprite, Thums Up, Fanta, and Limca, as well as juices such as Maaza and Minute Maid. Additionally, it provides Kinley water, Honest tea, and coffee under the brands Georgia and Costa Coffee. The company’s venture into alcoholic beverages marks its entry into this market three decades after its re-establishment in India.
“In beverages beyond soft drinks, there’s a dynamic that is very interesting, which is an age of entering categories and retaining consumption of that category,” Arroyo had said during the interview.
“Different beverages, depending on who is drinking, who is making the decision to drink, and who is making the decision to buy, have different dynamics,” he added.
Nevertheless, executives familiar with the company’s strategies have indicated that due to the intricate nature of large-scale alcohol distribution and manufacturing in India, Coca-Cola intends to enter the market gradually. Furthermore, the spirits sector in India is subject to strict regulations and substantial taxes, with pricing under the control of individual states.
Apart from Japan and its recent introduction in India, Lemon-Dou is accessible in specific countries, including China and the Philippines.
In October, Coca-Cola and global spirits manufacturer Pernod Ricard disclosed a worldwide partnership to introduce a ready-to-drink pre-mixed cocktail featuring Absolut vodka and Sprite in 2024. The initial launch will encompass the UK, Netherlands, Spain, and Germany. The product, named Absolut & Sprite, will be crafted using Pernod’s premium Absolut vodka and Coca-Cola’s lemon-lime soft drinks Sprite and Sprite Zero Sugar.
Coca-Cola’s exploration into the alcohol sector in specific international markets extends to offerings like seltzers such as Topo Chico Hard Seltzer and pre-mixed cocktails like Schweppes and Jack Daniel’s & Coca-Cola.
The US beverages giant is strategically expanding in the alcohol ready-to-drink space.
“We take the responsibilities that come with our products in the alcohol ready-to-drink space very seriously as we grow our brands in a responsible and sustainable way,” the company said on its website.