Coca-Cola India, known for its iconic soft drinks, is taking a bold leap into the alcoholic beverage market. The company has initiated a pilot test of Lemon-Dou, a globally recognized alcoholic ready-to-drink beverage, in Goa and parts of Maharashtra. Lemon-Dou is a blend of shochu — a distilled liquor akin to brandy and vodka — and lime, offering a refreshing twist.

Why it matters? According to an ET report, this foray into the alcohol segment marks a significant diversification for Coca-Cola India, which has traditionally focused on non-alcoholic beverages.

Lemon-Dou, priced at ₹230 for a 250 millilitre can, originates from Japan and falls under the category of ‘chuhai’, an alcoholic cocktail. It represents Coca-Cola's strategy to evolve into a "total beverages company."

Entering a regulation minefield: In India, a complex and heavily regulated market for alcohol, Coca-Cola plans a gradual expansion, mindful of the intricacies of distribution and manufacturing. The company’s entry into alcoholic drinks comes three decades after its re-establishment in India.

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Coca-Cola has also announced a collaboration with Pernod Ricard to launch a pre-mixed cocktail combining Absolut vodka and Sprite, starting in the UK, Netherlands, Spain, and Germany in 2024.

Setting up base: Coca-Cola is also investing ₹3,000 crore to set up a new plant for beverage bases and concentrates in Sanand, Gujarat, accelerating its presence in the state. Previously, the company made significant investments in Gujarat through its bottling partner, Hindustan Coca-Cola Beverages Limited.

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