India, one of the world's largest alcohol maker, is on the brink of implementing a regulation that could drastically reshape the liquor advertising landscape.
Currently, India prohibits direct adverstising of alcohol beverages. So to navigate this ban, companies use 'surrogate ads' , which means promoting it indirectly through seemingly unrelated products. However, as per the report, the country is brinking for a new regulation, aiming to close these loopholes and enforce a stricter controls.
What is surrogate ads?
Surrogate advertisement is one of the other way for liquour brands to promote their brand to the public while sidestepping the direct advertisement bans.
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These ads often features products like water bottles, music CDs, or glassware, but carry branding and design elements closely associated with the alcoholic beverages, according to Reuters report.
The new regulation, if finalised will have a major impact on the alcohol market as India is one of the major player in alcohol market. | Pixabay
Although yet to be finalised, the upcoming new regulatoin will target these surrogate ads. According to Reuters reports, the new proposed law could impose a hefty fine upto Rs 5 million (approx. USD 60,000) on comapanies caught in violation of this and also can enforce a ban of 1-3 years on celebraties endorsing in such ads.
Impact on Major players
The new regulation, if finalised will have a major impact on the alcohol market as India is one of the major player in alcohol market.
Among the leading companies in the market include Carlsberg, Pernod Ricard, and Diageo.
Diageo and Pernod Ricard together hold a market share of about 20 per cent in India and Pernod Ricard’s Indian operations contribute around 10 per cent of its global revenue, added the report.
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