Coca-Cola India, the country’s largest soft drinks company, has made a significant foray into the alcohol segment with the introduction of Lemon-Dou, its global alcoholic ready-to-drink beverage. This move marks Coca-Cola India’s first venture into the alcoholic drinks market in the country, expanding its product portfolio beyond non-alcoholic beverages.
Pilot tests of Lemon-Dou in select regions have begun, including in Goa and parts of Maharashtra. Coca-Cola India is taking a cautious approach to gradually enter the Indian alcoholic beverage market due to the complexities associated with large-scale alcohol distribution and manufacturing in the country. 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.
Lemon-Dou, originally launched in Japan in 2018, is a distinctive blend of shochu, a distilled liquor similar to brandy and vodka, combined with the zesty flavour of lime. This ready-to-drink beverage has gained popularity in Japan, China, the Philippines, and other select countries. In the test launch phase in India, Lemon-Dou has been priced at Rs 230 for a 250 ml can.
Coca-Cola’s entry into the alcoholic drinks segment in India reflects its vision as a “total beverages company,” catering to diverse consumer preferences beyond soft drinks. The company aims to meet the demands of consumers seeking a variety of beverages that fuel both the body and the mind. By experimenting with the alcohol category, Coca-Cola India aims to tap into the immense potential of this market. The alcoholic beverage sector in India is highly regulated and heavily taxed, with pricing controlled by individual states. This poses challenges for companies entering this sector. However, Coca-Cola India is strategically navigating these complexities and gradually expanding its presence in the alcohol ready-to-drink space.
Coca-Cola India is exploring various opportunities in the alcoholic beverage space globally. In collaboration with spirits maker Pernod Ricard, the company plans to launch Absolut vodka and Sprite as a ready-to-drink pre-mixed cocktail in 2024. This collaboration highlights Coca-Cola’s strategic expansion plans and its commitment to growing its brands responsibly and sustainably in the alcohol ready-to-drink space.
RTM Watch’s Take
Coca-Cola India’s entry into the alcohol segment with Lemon-Dou is a significant move that showcases the company’s commitment to diversifying its product portfolio and meeting evolving consumer demands. By venturing into the alcoholic beverage market, Coca-Cola India aims to leverage its brand strength and capitalise on the growing popularity of ready-to-drink alcoholic beverages. While the Indian market presents unique challenges, Coca-Cola India’s cautious approach and strategic collaborations position the company for success in this new segment.
