India's New Crackdown on Surrogate Advertising: What It Means for Liquor Firms

India is set to implement strict rules banning surrogate liquor ads and event sponsorships, impacting major firms like Carlsberg, Pernod Ricard, and Diageo. These new regulations target misleading advertisements that promote alcohol indirectly through associated products and carry penalties for both companies and endorsing celebrities.

India is preparing to introduce stringent regulations that will prohibit surrogate liquor advertisements and event sponsorships, compelling companies like Carlsberg, Pernod Ricard, and Diageo to reevaluate their marketing strategies. These surrogate ads often circumvent the current ban by showcasing less desirable items such as water, music CDs, or glassware adorned with logos similar to those of their alcohol products, frequently endorsed by Bollywood celebrities.

The new rules could impose fines on companies and bans on celebrities for promoting misleading ads related to tobacco and liquor. Nidhi Khare, a top civil servant for consumer affairs, stated that final regulations are expected within a month, emphasizing that circumventing advertising rules will not be tolerated.

Violations will result in fines up to 5 million rupees ($60,000) and endorsement bans ranging from one to three years. The changes represent a significant shift for India's liquor market, valued at $45 billion annually, and are supported by the World Health Organization as an effective public health measure.

(With inputs from agencies.)