Coca-Cola Looking To Dips Into India's Alcoholic Beverage Market

In a bid to diversify its beverage portfolio, Coca-Cola has begun market trials for its Lemon-Dou alcoholic beverage in select regions of India, marking the company's inaugural venture into the alcohol sector. The rollout commences in Goa and parts of Maharashtra, integrating Lemon-Dou—a lemon-flavored drink infused with shochu—into the local market. Coca-Cola India's spokesperson, told Economic Times about the company's commitment to this new segment, underlining the distinct operations for alcoholic and non-alcoholic product lines.

Lemon-Dou, first introduced in Japan as chuhai in 2018, now seeks to capture the Indian market priced at Rs 230 for a 250 ml offering. This move is emblematic of Coca-Cola's ambition to establish itself as a comprehensive beverage provider, responding to the evolving demands for varied drink options. As Manolo Arroyo, Coca-Cola's global marketing head, elucidated in an interview with Economic Times, the expansion into alcohol is a deliberate and experimental shift, aimed at catering to consumer desires for diverse 'fuel' for both body and mind.

Beyond Japan, Lemon-Dou has made its mark in other Asian markets, including China and the Philippines. The foray into India—three decades post Coca-Cola's re-entry—mirrors the company's broader strategy to incrementally seed new products, acknowledging the complexities and regulations unique to the Indian spirits sector.

Meanwhile, on the international front, Coca-Cola has declared a collaboration with Pernod Ricard, set to launch a pre-mixed Absolut vodka and Sprite cocktail in 2024. This partnership is but one facet of Coca-Cola's forays into alcohol, which also include ventures like Topo Chico Hard Seltzer and the iconic Jack Daniel's & Coca-Cola mix.

The beverage titan has affirmed its commitment to a responsible and sustainable expansion within the alcohol ready-to-drink arena, as stated on its website, marking a significant leap into a category far-removed from its traditional soft drink dominion.