Such a move would compel the likes of Carlsberg, Pernod Ricard, and Diageo to reinvent their outreach programmes in India completely. These are only the principal players in India’s liquor industry, where annual sales are inching towards US$ 50 billion. 

As the government looks to add more regulatory hurdles, the implications could go even further. But first, let's demystify what these ads are that are facing the policy axe.

Surrogate Ads, Sponsorships Face Policy Axe

The Secretariat managed to get some insights into the draft of the new rules, which call for “prohibition on surrogate advertisement”, as well as on sponsorships and ads for products that are disguised as “brand extensions” but share the original characteristics of an alcohol brand. 

The new draft prohibits marketing of surrogate items such as glass tumblers or music CDs that use “similar label, design, pattern, logo” as that in alcobev products.

Such has been the ripple effect of the proposed clampdown on ‘sister ads’ that even the international media has taken note of and reported on. The Drinks Business wrote of the “world’s largest country by population, which already outlaws direct advertising of alcohol” being on the verge of bringing in “legislation that will outlaw surrogate commercials and the sponsoring of events”. 

The report also noted that this could have a huge impact on liquor companies that are fighting for this growing market, forcing them to redraw their brand strategies.

The World Health Organization has forecast that India’s consumption of alcohol will rise to seven litres per person yearly by 2030, compared to five litres in 2019. 

This 40 per cent increase will be driven by a growing urban population with higher spending capacity, in addition to the 20 lakh urban Indians who will reach the legal age for alcohol consumption each year.

India: A Must-Win Market That Entices All

According to Euromonitor, a London-based market research company, India is already the eighth-largest market for alcoholic beverages in the world by volume, worth US$ 45 billion annually and growing quickly.

For liquor firms such as Pernod Ricard, India is its second-largest consumer, notching up over 10 per cent of global sales, catalysing Chairman Alexandre Ricard to label India as a ‘must-win’ market.

To get not just their foot in the door of this ‘must-win’ prize, but to get body, soul, and gravitas inside the venue itself, liquor firms are thinking out of the box. 

Similar to the medical drugs and pharmaceutical products, where some doctors unofficially ‘empanel’ themselves to prescribe particular brands, thereby pushing sales, alcobev firms are also reaching out to a ‘last mile’ in the sales chain.

Salespersons at liquor vends are being further incentivised to promote select labels, which is a practice that has been prevalent before these draft rules entered the picture. 

In places like Delhi, still in the middle of a liquor excise storm, most erstwhile popular brands have disappeared from shelves and new options and labels are reaping sales highs. 

“Try this brand, it is really good” is a typical and oft-heard pitch made to Bacchus-worshippers when they reach the counter. Many a time, the brands pushed are so vague or expensive, or both, that many head to border states where choices are more soothing for both pocket and soul.

Of Private Vends And Happening Joints

That brings us to private vends, be they in Gurgaon, Mumbai, or elsewhere. Pushing brands here is simpler as the business of economics enters the picture, and profits become the primary concern. 

Unlike Government-owned liquor vends (as in Delhi), home delivery is a primary USP here and insofar as liquor firms are concerned, that is a Godsend. Brands are blatantly promoted and pushed, more so as the clock ticks to midnight and beyond.

Another target arena is where youngsters, or those who want to remain thus, in a bid to socialise enter pubs, resto bars, and discotheques. These ‘happening joints’ frequently host events around bands and rock stars, particularly their anniversaries, their coming, their ripening, and even their going. 

A fad is to push brands at these events, even without visible promotion, and free of cost.

For instance, on Jim Morrison’s birthday and the anniversary of Rolling Stones, discotheques in Delhi-NCR gave out free Jack Daniels shots to all present. 

Celebrities To Face The Brunt Too

A welcome monkey wrench in the draft rules is the heavy comedown on celebrities endorsing liquor (and tobacco) products. Many companies have used them in circuitous ways to promote their wares. 

In case surrogate ads with any celebrity make it through the fine-mesh strainer of censorship, both the owner firm and the endorsing celebrity will face the whip as stringent fines are being devised.

Therefore, Carlsberg may no longer be allowed to promote its Tuborg drinking water in India, at least not through its erstwhile ad that had film stars crooning and dancing on a rooftop with the tag-line ‘Tilt Your World’, reminiscent of its beer ads elsewhere in the world, finishing off rather appropriately with the caveat – ‘Drink Responsibly’.

Also under attack would be advertisements such as Diageo’s social media ads for Black & White ginger ale, which walked into YouTube’s Hall of Fame with 60 million views, showcasing monochromatic terriers from its scotch brand of the same name.

Finally, the chances of anyone in India ever seeing Vijay Mallya’s pin-up calendar promoting Kingfisher beer, now part of the Heineken Group, will become even slimmer once the new rules come into force. 

(The writer is a veteran journalist and communications specialist. Views expressed are personal)