Coca-Cola released an alcoholic drink for the first time in history

Coca-Cola began selling alcohol for the first time in its history - the drink, called Lemon-Do, went on sale today in Japan. The company's management emphasizes that it has no plans to produce alcoholic beverages in other countries. But the problem that has forced Coca-Cola to expand in Japan is the same in all developed countries: sales of the company's main product, sweet soda, are declining.

Details

• The new low-alcohol drink from Coca-Cola can be purchased in three strengths (3, 5 and 7%), one 350 ml can will cost 150 yen (about 85 rubles).
• Japan was not chosen by chance: for several years now, “chuhai”, a low-alcohol carbonated drink with various flavors based on the local drink shochu, which is considered an alternative to beer, has been rapidly gaining popularity in the country. Since 2011, the tyuhai market has grown by 40%. Also, the Japanese market is the main platform for the manufacturer's experiments: every year an average of 100 new Coca-Cola products are tested there, and only a few of them go outside the country.
• Coca-Cola does not plan to sell Lemon-Do, the recipe of which is kept secret, outside Japan. The company calls the release of the alcoholic drink “a modest experiment in a specific market segment.”
• As the Financial Times wrote , Coca-Cola released an alcoholic drink against the background of declining sales of its main product - carbonated drinks. In 2017, the company's revenue decreased by 20%, net profit fell by 80% to $1.25 billion.
• Other carbonated drink makers are facing a similar problem - younger generations are avoiding sugar consumption, and the company is investing in products in more growth segments - bottled water and tea.
• Bloomberg notes that in the economies of developed countries, alcohol consumption as a medical problem is decreasing, while obesity, on the contrary, is becoming a growing problem. Soda taxes already exist in Mexico, the UK and some US states.

What's in it for me?

In Russia, sales of sweet soda are not falling yet, but there is no doubt that this will happen - when launching new products, this global trend must be taken into account.

Artem Gubenko