In India, the enduring soft drink culture, dominated by iconic brands, such as Coca-Cola, has witnessed a notable shift as the company ventures into the liquor segment. Coca-Cola has introduced its inaugural alcoholic brand, 'Lemon Dou,' marking its entry into this market in regions of Maharashtra and Goa.
Originating in Japan, Lemon Dou, also known as Chuhai, gained popularity as a cocktail drink and was initially launched as a ready-to-drink (RTD) beverage in 2018. Priced at INR 230 for a 250-ml can during the test launch in India, the drink is crafted from a blend of shochu, a distilled liquor akin to vodka and brandy, and lime.
Currently available in select countries like the Philippines, China, Japan, and now India, Lemon Dou is manufactured in different facilities, distinct from Coca-Cola's soft drink production sites. Coca-Cola's extensive soft drink portfolio includes popular beverages like Coke, Sprite, Thumbs up, Fanta, Limca, Maaza, and Minute Maid, along with mineral water under the Kinley brand.
The move into the alcoholic beverage market aligns with India's growing consumption trends. According to the International Spirit and Wines Association of India (ISWAI), the country's alcoholic beverage market could reach approximately $64 billion in the next five years, solidifying India as the fifth-largest contributor to the global market. In 2021, the market size was around $52.4 billion, contributing about 2 percent to India's nominal GDP, as reported by ISWAI.
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