NEW DELHI – India, which currently prohibits direct advertising of alcoholic beverages, is poised to implement comprehensive regulations that will also ban surrogate advertising and event sponsorships related to liquor brands. This move is expected to compel companies such as Carlsberg, Pernod Ricard, and Diageo to overhaul their marketing strategies. Surrogate advertising has traditionally circumvented the liquor advertising ban by promoting seemingly unrelated products—such as water, music CDs, or glassware—while subtly incorporating branding elements linked to their alcoholic products. These advertisements are often endorsed by prominent Bollywood celebrities. Under the new regulations, such practices will be prohibited, with significant penalties for non-compliance.
Nidhi Khare, the top civil servant for consumer affairs, stated that the new rules will target misleading surrogate advertisements and hold both companies and endorsers accountable. “You cannot use indirect methods to promote alcoholic products,” Khare explained. “If advertisements are deemed surrogate and misleading, both the companies and the celebrities endorsing these products will face repercussions.”
For instance, Carlsberg has been promoting its Tuborg-branded drinking water in India with an advertisement featuring celebrities at a rooftop dance party, accompanied by the slogan “Tilt Your World,” which mirrors its beer advertising elsewhere. Similarly, Diageo’s YouTube ad for its Black & White ginger ale prominently features the black-and-white terriers associated with its scotch brand.
These new regulations are set to transform the marketing landscape for alcohol brands in India, which ranks as the eighth-largest alcohol market globally by volume, with annual revenues estimated at $45 billion by Euromonitor. The burgeoning affluence among India’s 1.4 billion people makes it a key market for major players such as United Breweries, Diageo, and Pernod Ricard. United Breweries, part of the Heineken Group, holds over a quarter of the market share, while Diageo and Pernod Ricard together account for approximately 20% of the market, with India contributing significantly to their global revenues. The draft rules specify a prohibition on surrogate advertising and extend to sponsorships and advertisements for products perceived as extensions of alcohol brands. The regulations impose fines of up to 5 million rupees (approximately $60,000) and may result in endorsement bans for one to three years for those who violate the rules.
Carlsberg declined to comment on the new regulations, and other companies have yet to respond to inquiries regarding the impact on their non-alcoholic product sales. The International Spirits and Wines Association of India, which includes members such as Diageo and Pernod Ricard, indicated its commitment to adhering to the new regulations and is engaged in discussions with the government regarding the advertising of legitimate brand extensions, according to Nita Kapoor, the association’s outgoing chief executive.
