Govt to announce stricter regulation on alcohol advertisements

Alcohol ads in India: The government is set to implement stricter regulations on alcohol advertising, which could significantly impact major liquor brands like Carlsberg, Pernod Ricard, and Diageo. The new rules, expected to be finalised within a month, aim to eliminate not only direct liquor ads but also surrogate advertisements and sponsorships linked to the industry.

Currently, surrogate ads evade the direct liquor advertising ban by promoting alternative products—such as water or glassware—while subtly endorsing the alcoholic brand through visual or thematic elements. For instance, Carlsberg’s ad for Tuborg drinking water and Diageo’s YouTube campaign for Black & White ginger ale have faced scrutiny for their indirect promotion of their alcohol products.

Under the forthcoming regulations, companies could face fines of up to Rs 50 lakh (approximately $60,000) if found in violation. Additionally, celebrities endorsing such ads may face endorsement bans ranging from one to three years. The new rules also prohibit sponsorships and advertisements for items that resemble or are associated with alcoholic beverages, effectively targeting indirect promotional strategies.

India’s alcohol market, valued at $45 billion and ranked as the eighth-largest by volume globally, is seeing growing interest due to increasing affluence among its 1.4 billion people. Major players like United Breweries, which has a significant market share, and Diageo and Pernod Ricard, which together hold about a fifth of the market, are likely to be affected by these changes.

The new draft regulations are designed to align with global best practices and public health recommendations. The World Health Organization supports comprehensive advertising curbs as effective public health measures, noting that similar restrictions in countries like Norway have led to reduced alcohol sales over time.

While the International Spirits and Wines Association of India, representing companies like Diageo and Pernod, supports the intention behind the new rules, it advocates for clear and genuine brand extension advertising that accurately represents the products being promoted.

(With Reuters inputs)