Liquor Industry Body Seeks Lenient Terms for Surrogate Ads

In a letter to the consumer affairs ministry, the Confederation of Indian Alcoholic Beverage Companies (CIABC) stated that “for brand extensions permitted under law to advertise, companies should have unfettered right to advertise provided there is no misrepresentation or miscommunication suggesting the product to be something else.”

The CIABC’s letter follows a government directive to alcohol makers asking for a list of products sold as surrogate extensions in fifteen days, along with revenue earned from each brand extension. According to a report in The Economic Times, the letter was signed by Vinod Giri, Director General of CIABC, and addressed to Anupam Mishra, Joint Secretary at the Ministry of Consumer Affairs, Food, and Public Distribution. CIABC’s members include Allied Blenders & Distillers, Amrut Distilleries, Devans Modern Breweries, Globus Spirits, Jagatjit Industries, Mohan Meakin, Radico Khaitan, and Sula Vineyards.

Earlier in December, the Advertising Standards Council of India (ASCI) had tightened guidelines for brand extensions in restricted categories such as liquor and tobacco. These guidelines require the revenue from brand extension to progressively achieve higher threshold levels year after year to be able to advertise. “The proportions for the ad budgets are capped at 200 percent of the turnover in the first two years of the launch of the extension, followed by 100 percent of revenue in the third year, 50 percent in the fourth year, and 30 percent thereafter,” the updated guidelines for brand extensions stated.