The Indian government is set to introduce stringent regulations banning surrogate advertising used by liquor brands to market their products. Due to the prohibition on direct alcohol advertising, major companies have relied on promoting non-alcoholic items like water, music CDs, or glassware as proxies. These surrogate ads often feature prominent Bollywood stars.
What will the new rule imply?
Once implemented, the new rules will hold both companies and endorsing celebrities accountable if the ads are deemed misleading, potentially leading to substantial fines. Nidhi Khare, an official involved, emphasized that indirect promotion of products would no longer be tolerated, and violators, including celebrities, will face consequences.
Companies such as Carlsberg, Diageo, and Pernod Ricard may face penalties up to Rs 50 lakh ($60,000) if they continue with current promotional practices. These regulations, expected to be enforced within a month, could significantly impact the industry. India, the world’s eighth-largest alcohol market by volume, generates annual revenues of $45 billion, with per capita alcohol consumption projected to increase from five liters to nearly seven liters by 2030.
No more ‘brand extensions’
The draft rules will also cover sponsorships and advertisements for products considered “brand extensions” that resemble the characteristics of alcohol brands. This move could spell the end of some of the most iconic surrogate ad campaigns in India. For example, Kingfisher, India’s largest beer-maker, is renowned for its “Oh la la la la..le O” jingle and calendar, while Seagram’s Imperial Blue whisky has been marketed with the “men will be men” tagline for nearly two decades, using CDs as surrogates. Similarly, McDowell promoted its alcohol through club soda with the popular “No.1 Yaari” (Ultimate friendship) tagline, resonating even with non-drinkers.
With these new regulations, liquor brands will need to devise innovative marketing strategies to comply with the law while continuing to reach their audience. They will need to ensure that their marketing strategies are effective without ruffling legal feathers.
