Indian Government to enforce tougher ad curbs on liquor manufacturers

In India, direct advertising of alcoholic beverages is prohibited. To bypass this restriction, companies often use surrogate ads that promote less controversial products, such as water, music CDs, or glassware. These ads, however, often feature logos and elements that closely resemble those of their liquor brands.

However, the Indian government is considering a ban on liquor manufacturers using surrogate advertisements and sponsoring events for their primary alcoholic products. According to new draft regulations, companies such as Carlsberg, Pernod Ricard, and Diageo could face fines of up to ₹50 lakh if they persist in promoting their main products through surrogate ads in India, as reported by Reuters.

Additionally, the new laws prohibit the marketing and branding of products such as soda, CDs, water, and glasses if they use labels, designs, patterns, or logos similar to those of alcoholic beverages, which was heavily practised in India thereby specifically targeting attempts to circumvent existing bans.

However, the exact penalties under these laws are still to be finalized and will be based on consumer protection regulations. As reported by Reuters, manufacturers and promoters of surrogate ads could face fines of up to ₹5 million (₹50 lakh) and potential bans ranging from one to three years.

The implementation of these new rules is expected to have a substantial impact on the liquor industry in India, which is recognized as the world's eighth-largest alcohol market by volume.