Liquor companies seek advertising leeway for brand extensions

The Confederation of Indian Alcoholic Beverage Companies (CIABC) has made a plea to the consumer affairs ministry regarding advertising regulations for brand extensions in the liquor industry. In a letter addressed to Anupam Mishra, joint secretary at the Ministry of Consumer Affairs, Food and Public Distribution, Vinod Giri, director general of CIABC, highlighted the need for a balanced approach to advertising restrictions.

The letter emphasised that while companies should have the right to advertise brand extensions permitted under the law, they must ensure there is no misrepresentation or misleading communication regarding the products. This move from CIABC follows a recent directive from the government to alcohol manufacturers, requesting them to submit a list of products sold as surrogate extensions within a specified timeframe.

Liquor companies often market products such as packaged water, music CDs, playing cards, and soda under brand names identical to their alcoholic beverages, as advertising the latter is restricted. Despite these limitations, advertisements for such products are widespread.

"Brand extensions are legitimate endeavours, and due to historical restrictions, companies have de-risked by creating parallel businesses. Since creating a new brand name is a very expensive proposition, companies tend to extend the same brand name which is familiar to consumers even if it is in a different product category since such familiarity lends credibility," the letter reads.