Coca-Cola India breaks ground in alcoholic drinks with Lemon-Dou
What's the story
Coca-Cola, known for its soft drinks worldwide, has stepped into new territory by testing the alcoholic beverage market in India, per an Economic Times (ET) report. The company has introduced Lemon-Dou, a globally recognized ready-to-drink blend that combines shochu, a distilled liquor similar to brandy and vodka, with lime for a refreshing twist. This departure by Coca-Cola from its usual lineup reflects a strategic shift to adapt to changing consumer tastes and expand its product range in a dynamic market.
Details
Lemon-Dou's origins and pricing
Lemon-Dou falls into the "chuhai" category of alcoholic cocktails, and for the test run, the beverage is priced at Rs. 230 for a 250ml can in India. "Alcohol is a very big category and we have on purpose decided to experiment," Manolo Arroyo, marketing chief at Coca-Cola Global, told ET. Debuting in 2018 in Japan, Lemon-Dou swiftly expanded its presence across other Asian markets like China and the Philippines.
Insights
Lemon-Dou undergoing trials in specific Indian states
A Coca-Cola India spokesperson told ET that the company is currently conducting a trial of Lemon-Dou only in a few Indian states. Elaborating on the development, the company clarified to ET that the preparation and distribution of these beverages take place in separate, dedicated facilities within the country. These facilities are distinct from those involved in producing and distributing their non-alcoholic, ready-to-drink (NARTD) beverages.
Insights
Navigating India's complex alcohol market
Coca-Cola plans a cautious expansion in India, a complex and heavily regulated market for alcohol. The company is aware of the intricacies of distribution and manufacturing as it enters the alcoholic drinks sector three decades after its re-establishment in India. Separately, Coca-Cola has also announced collaborations with Pernod Ricard to launch pre-mixed cocktails combining Absolut vodka and Sprite in the United Kingdom, Netherlands, Spain, and Germany in 2024.
Facts
Coca-Cola's investment in Gujarat, commitment to responsible expansion
Coca-Cola is investing Rs. 3,000 crore to establish a new plant for beverage bases and concentrates in Sanand, Gujarat, strengthening its presence in the state. Previously, the company made significant investments in Gujarat through its bottling partner, Hindustan Coca-Cola Beverages Limited. The beverage giant has affirmed its commitment to responsible and sustainable expansion within the alcohol ready-to-drink arena, as stated on its website.