The consumer affairs ministry has issued notices to more than half a dozen liquor brands for non-compliance with rules that prohibit surrogate advertising, said officials with knowledge of the matter. Liquor brands are advertising themselves using music CDs, packaged water and non-alcoholic beverages, said one of them.
"These are advertising liquor under the garb of selling something innocent," the official said, without divulging names. India doesn't allow alcohol advertising.
The companies have been given time to respond to the notices, said the people cited above.
"We have already responded to the notice received and have furnished all the necessary details. We have brand extensions that have a revenue model. Since these extensions are in their initial stage of the launch, it will take some time for their volume to grow. We are extremely hopeful that these brand extensions will grow as successful standalone brands in the times to come," said Amar Sinha, COO at Radico Khaitan.
Experts said liquor companies have to comply with the rules.
CCPA Guidelines
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"The fact, however, remains that it is a challenge to advertise in India, especially when there is a need to reach out and communicate during new brand launches or extensions," said Nita Kapoor, CEO, International Spirits and Wines Association of India (ISWAI).
Rediffusion managing director Sandeep Goyal said, "Top liquor brands are still advertising despite the regulations. There are foreign companies hoodwinking Indian laws which is not good. Any kind of ambiguity in regulations will only be incentivising marketers to find loopholes in the law."
Other companies didn't respond to ET's queries.
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The Central Consumer Protection Authority (CCPA), the consumer rights protection body of the consumer affairs ministry, issued guidelines in June against surrogate or indirect advertising. Notified by the consumer affairs ministry, these came into force with immediate effect. In August, the ministry directed industry groupings to ensure compliance, failing which violators were warned of "stern action." The grouping included ISWAI, the Indian Society of Advertisers, Advertising Standards Council of India (ASCI), Confederation of Indian Industry (CII), Assocham and others.
Advertising for liquor has been banned in the country since 1995 but companies often use brand names on unrelated products to help with recall.
