Coca-Cola Dives Into Alcoholic Beverages with Lemon-Dou Pilot In India

Iconic soft drink producer, Coca-Cola Co's (NYSE: KO), is stepping into the alcoholic beverage market in India. The company has begun a pilot test of Lemon-Dou, a globally enjoyed alcoholic ready-to-drink beverage in Goa and select areas of Maharashtra. Lemon-Dou merges shochu — a distilled Japanese liquor similar to brandy and vodka — with lime, offering a unique and refreshing blend.

This venture into the alcohol industry signifies a substantial shift for Coca-Cola India, which has traditionally been concentrated on non-alcoholic beverages, as per a report from ET.

Originally from Japan, Lemon-Dou is a ‘chuhai’, an alcoholic cocktail, retailing at ₹230 for a 250-milliliter can. This aligns with Coca-Cola's ambition to evolve into a "total beverages company."

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The Indian alcohol market is intricate and heavily regulated. Despite this, Coca-Cola intends a careful expansion, aware of the complexities of distribution and manufacturing. This is the company’s first step into alcoholic beverages since its re-establishment in India three decades ago.

Besides, Coca-Cola announced a partnership with Pernod Ricard to debut a pre-mixed cocktail blending Absolut vodka and Sprite, set to launch in the UK, Netherlands, Spain, and Germany in 2024.

In related news, Coca-Cola is investing ₹3,000 crore in a new plant for beverage bases and concentrates in Sanand, Gujarat, bolstering its presence in the region. Previously, significant investments were made in Gujarat through its bottling partner, Hindustan Coca-Cola Beverages Limited.

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