9-09-2024; Story by editor@republicworld.com
Surrogate ads baned: India is preparing to introduce stringent new advertising regulations that will impact major liquor brands including Carlsberg, Pernod Ricard, and Diageo. The forthcoming rules will ban not only direct liquor advertisements but also surrogate ads and sponsorships of events, reshaping how these companies market their products in the country.
Currently, liquor companies often bypass direct advertising bans by promoting unrelated products, such as water, music CDs, or glassware, while subtly linking them to their alcoholic beverages. These ads, often featuring Bollywood celebrities, are set to face significant scrutiny under the new rules.
Nidhi Khare, Consumer Affairs Secretary said, “You can’t take a circuitous way to promote products. If we find ads to be surrogate and misleading, then even those endorsing these products, including celebrities, will be held responsible.” Final regulations are expected within a month. For instance, Carlsberg’s promotional content for its Tuborg drinking water and Diageo’s Black & White ginger ale ads, which use imagery and slogans reminiscent of their alcoholic beverages, may face penalties under the new rules.
India’s alcohol market, valued at $45 billion annually, is the eighth-largest in the world by volume. With increasing affluence, India represents a key market for major brewers and spirits producers. Diageo and Pernod Ricard together hold about 20 per cent of this market, while Pernod’s Indian operations contribute around 10 per cent to its global revenues.
The new regulations will prohibit surrogate advertising and sponsorships that imply a connection to alcohol brands. Penalties could include fines up to 5 million rupees ($60,000) and endorsement bans ranging from one to three years.
Nita Kapoor, outgoing CEO of the International Spirits and Wines Association of India, which includes Diageo and Pernod, mentioned that the industry is in discussions with the government. She emphasised support for advertising genuine brand extensions, provided they adhere to the new standards.
The World Health Organization supports comprehensive alcohol advertising bans as effective public health measures. India’s new draft rules are inspired by global best practices and aim to curb misleading marketing tactics, reflecting a broader trend toward stricter advertising controls.
The proposed rules will also target items like soda or glassware that use designs or logos similar to those of alcoholic products, aiming to prevent indirect promotion of alcohol brands.(With Reuters inputs)