Hangover blues

Government is all set to clamp down on brand extensions by liquor companies

From Teacher's Achievement Awards to Royal Challenge golf accessories. From Bacardi and Smirnoff cassettes and CDs to 8 PM juice and Haywards 5000 soda.

After a three-year lull, surrogate advertising from liquor companies is back with a vengeance, especially, in the print media. The lull came post-2002, when the government clamped down on two liquor brands"" McDowell's No 1 and Gilbey's Green Label"" and issued show-cause notices to Star, Zee, Sony and Aaj Tak, for carrying their ads.

But the spirits makers' current party may also be over soon. The ministry of information & broadcasting is in the process of adding a new clause to the Cable Television Network Regulation Rules, 1994.

Till recently, Section 7 (2) of the Cable Act merely stated that "no broadcaster is permitted to show an advertisement which promotes directly or indirectly, sale or consumption of cigarettes, tobacco products, wine, alcohol, liquor or other intoxicants, infant milk substitution, feeding bottle or infant food."

Now, a new clause stating "any advertisement for a product that uses a brand name which is also used for cigarette, tobacco product, wine, alcohol, liquor or any other intoxicant will not be permitted", is being added and the file on the subject has already moved"" to get the final nod from the I&B secretary and the minister. A senior I&B official says that after the approval, the clause will be ready for enforcement.

"The moment it comes into force, all brand extensions will have to stop. Then it will be up to the Advertising Standards Council of India (ASCI) to take up the matter with the respective companies. If ASCI fails to take action, then the government will step in to use the danda," says the official.

The prospect of a bigger danda is making the Rs 60,000 crore liquor industry feel low. "If the new law is enforced, it will be really unfortunate. If a brand has equity, why shouldn't it be allowed to advertise? Also, brand extension is an industry practice, adopted by different product categories," says Aloke Gupta, executive vice-president, UB group.

So can Wills (tobacco) continue with the apparel brand and Kingfisher (beer) with its airline brand? According to government sources, the companies may have to rework the nomenclature of their brand extensions or refrain from advertising them in the mass media.

Siddharth Bannerjee, regional director, Kyndal India, however, feels that the universal trademarks like Wills or Kingfisher may not be harmed. Besides, the government cannot stop events and promos of its liquor brands organised on licensed premises or at the point of consumption, he adds.

But the prospect of doing away with brand extensions has upset the industry. "When we advertise our 8 PM juice or Old Admiral Aqua Pura, we follow all the guidelines," says Raju Vaziraney, president, sales & marketing, Radico Khaitan.

Concurs Santosh Kanekar, director marketing, UDV, "Smirnoff cassettes and CDs are legitimate business ventures involving actual manufacture and definite revenues for the company. Our cassettes and CDs are available at all the Planet M outlets in the country."

Ashwin Deo, MD, Moet Hennessey in fact wants advertising to be allowed: "If we have the right to manufacture and sell then why are we denied the right to talk about the product," he asks.

The liquor industry complains that it's denied the privilege to advertise despite contributing a whopping Rs 22,000 crore to the state exchequer.

Even the advertising code of the Confederation of Indian Alcoholic Beverages Companies (CIABC), which is benchmarked against guidelines in the US and UK, maintains that advertisement of products (read brand extensions) by the liquor industry must be allowed.

Especially, if they comply with the appropriate Federal or state laws concerning the marketing of alcohol beverages. "Frankly speaking, if a product is duly registered and conforms to all the guidelines then where's the issue?," says Pramod Krishna, director-general, CIABC.

Miffed by the liquor advertising law turning even more stringent, the Indian Broadcasting Federation (IBF) director Naresh Chahal says: "If it's so distasteful to have ads which have anything to do with alcohol, then why not ban the sale and consumption of liquor?" A frightening thought for liquor connoisseurs.