India is known for its strict regulations on the advertising of liquor, with a ban on direct advertisements in place. However, in a recent development, the country is set to announce sweeping rules that will further restrict surrogate ads and sponsorships related to alcohol products. This move could have a significant impact on major players in the industry such as Carlsberg, Pernod Ricard, and Diageo, forcing them to rethink their marketing strategies.
Surrogate ads have been a common practice in India, where companies promote products that are seemingly unrelated to alcohol but carry the branding and messaging associated with their main liquor products. These ads often feature popular Bollywood celebrities and use creative tactics to indirectly promote alcohol consumption. The new rules aim to crack down on such practices and hold both companies and endorsers accountable for misleading advertisements.
One example of a surrogate ad is Carlsberg’s promotion of its Tuborg drinking water in India, which features film stars at a rooftop party with the slogan „Tilt Your World“, reminiscent of its beer ads. Similarly, Diageo’s YouTube ad for its Black & White ginger ale uses the signature black-and-white terriers from its scotch brand. These ads blur the lines between alcohol and non-alcohol products, creating confusion among consumers.
The changes proposed by the Indian government could have a significant impact on the liquor industry in the country, which is the eighth-largest alcohol market globally. Companies like United Breweries, Diageo, and Pernod have a substantial market share in India, making it a key market for their business. The new rules call for a prohibition on surrogate advertising and brand extensions that mimic the characteristics of alcohol brands, with penalties for violators.
The World Health Organization supports bans or restrictions on alcohol advertising as a public health measure. India’s per capita alcohol consumption is expected to rise in the coming years, leading to concerns about alcohol-related harm and deaths. The new rules aim to align with global best practices, following the example of countries like Norway, which have successfully reduced alcohol consumption through advertising restrictions.
The draft rules in India also target misleading ads for tobacco products, emphasizing the need for transparency and accuracy in advertising. While the government is not against brand extension ads, it wants to ensure that consumers are not misled by ads that promote non-alcohol products but bear similarities to liquor brands. The enforcement of these rules could lead to fines for companies and bans for celebrities endorsing such ads.
Overall, the proposed rules on surrogate advertising in India represent a significant step towards promoting responsible marketing practices and protecting public health. By cracking down on misleading ads and sponsorships, the government aims to create a more transparent and accountable advertising environment for the alcohol industry. It remains to be seen how companies will adapt to these new regulations and reshape their marketing campaigns in compliance with the law.