India could shake up alcohol advertising regulations in the country, which may impact Pernod Ricard, Diageo and Carlsberg campaigns.
According to Reuters, India is set to ban alcohol companies from sponsoring events and pushing out so-called “surrogate” advertisements that potentially skirt government regulations.
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Nidhi Khare, a secretary at India’s Department of Consumer Affairs told the publication that final rules around the law were expected to be published in a month.
These “surrogate ads” refer to promotional materials that use other products to raise brand awareness of restricted items.
Proposed penalties in the draft consumer law would see violating producers hit with endorsement bans of up to three years. Manufacturers could also have to pay up to Rs5m ($60,000).
If the ban were to come into place, then Diageo’s Black & White ginger ale adverts that feature symbols associated with the Scotch brand or Carlsberg’s Turborg drinking water Indian advert that shares similarities with its beer advertising could be restricted.
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By GlobalDataJust Drinks has reached out to Diageo, Carlsberg and Pernod Ricard for comment.
Last month, Pernod Ricard revealed it was assessing its next steps after its most recent attempt at re-obtaining a liquor sales license in New Delhi was rejected by local authorities.
The Jameson Irish whiskey maker’s legal challenge to regain its sales licence in the Indian capital was declined on the grounds that investigations into its alleged breach of the city’s liquor sale regulations were still ongoing.
Responding to the news at the time, Pernod Ricard said it would “review its options in light of the recent decision” and was “eager to re-start supplying to Delhi at the earliest opportunity”.
In the same period, the chief executive of Diageo’s Indian business was asked to appear before police over how the company provided liquor to government agencies.
Hina Nagarajan, CEO of Diageo’s majority-owned United Spirits, has been asked to provide several documents related to company sales to New Delhi’s anti-corruption police.
