Coke Makes Foray into Alcoholic Beverages

In it's 133 years of business, The Coca Cola Company has stood for the values that Norman Rockwell epitomized in his Saturday Evening Post covers.  Pure, just, and true are words that come to mind when I think of The Coca Cola Company.  Today the beverage category is changing faster than ever.  Their cola beverages are losing share, and  Coca Cola has met the new taste buds of the consumer by focusing on tea, juices, bottled water, energy drinks and mocktails.  It seems to be working as it's latest quarter showing a 6% year-to-date revenue growth for Coke. (NYSE Symbol: KO)  Inside sources say that when James Quincey took the helm from Mutar Kent in 2016 he stressed that nothing was off the table when it came to growth for the company. 

Today, Coke has decided to test a new alcoholic product in Japan. The product is a new lemon-flavored fizzy drink called Lemon-Do.  This is a first alcohol product for Coke other than the Sterling Vineyard purchase in the 1970's that didn't turn out so well.  The company said that they have no plans to bring Lemon-Do outside of Japan.  However; the drink sounds like it's very similar to the hard seltzer brands White Claw, Truly, Bon&Viv's Hard Seltzer, and others that have taken a dent out of the beer category this Summer. 

If Coke is really going after growth, can they leave a product like Lemon-Do that has a place in the American market in Japan?  And if they brought this product to the U.S. would it hurt their current image?  These are questions that need to be asked if they are truly a growth brand for the future.