India Cracks Down on Sneaky Alcohol Ads, Big Brands Like Carlsberg and Diageo to Change Tactics

India Plans Tougher Rules on Alcohol Ads

India is getting ready to announce strict rules that will stop even indirect ads for alcohol. This will impact big companies like Carlsberg, Pernod Ricard, and Diageo, who will have to change their marketing strategies.

Current Ad Tactics

Since direct advertising of liquor is banned in India, companies use “surrogate ads” to promote other products like water, CDs, or glassware with their alcohol brand logos. These ads often feature popular Bollywood stars.

New Rules Coming Soon

Nidhi Khare, a top government official, said the new rules will be out within a month. They will ban these indirect ads and hold both companies and celebrities accountable for misleading promotions.

Examples of Surrogate Ads

Carlsberg promotes its Tuborg water in India with ads that resemble its beer promotions. Diageo uses its Black & White ginger ale ads featuring its scotch brand’s famous terriers.

Impact on the Market

India is the eighth-largest alcohol market in the world, worth $45 billion a year. Companies like United Breweries, Diageo, and Pernod Ricard have a big share of this market.

Specifics of the New Rules

The new rules will ban surrogate ads and sponsorships that look like alcohol brand promotions. Penalties can include fines up to 5 million rupees ($60,000) and bans on endorsements for one to three years.

Industry Response

Carlsberg declined to comment. The International Spirits and Wines Association of India, which includes Diageo and Pernod, said they are committed to following the rules and support genuine brand extensions.

Health Impact

The World Health Organization says strict alcohol advertising bans help public health. India’s alcohol consumption per person is rising, unlike in China, where it is dropping.

Government’s Stand

India wants ads for brand extensions to clearly show the product, not mislead consumers into thinking it’s an alcohol ad. For example, a Pernod ad showed Bollywood star Alia Bhatt promoting glassware but looked more like a whisky ad.

Conclusion

The new rules aim to stop misleading ads and ensure that brand extensions are advertised properly. This will bring major changes to how alcohol companies promote their products in India.