The Confederation of Indian Alcoholic Beverage Companies (CIABC), a lobby representing the liquor industry, has communicated with the Ministry of Consumer Affairs. In their communication, they advocate for brand extensions to be allowed advertisement rights under the condition that such promotions are free from misrepresentation or misleading information that could suggest the product to be different from what it actually is.
The development comes days after the government issued a directive to alcohol manufacturers, instructing them to submit a list of products sold as surrogate extensions within 15 days. Additionally, they have sought information on revenue generated from brand extensions, which include water, soda, music festivals, payments to celebrities, and other related items.
Liquor manufacturers market packaged water, music CDs, playing cards, soda, and various other products using brand names that are identical to their alcoholic beverage brands, since advertising the alcohol itself is not allowed. Nevertheless, advertising for these associated products remains widespread despite the regulations.
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In a letter signed by Vinod Giri, the Director General of CIABC, addressed to Anupam Mishra, Joint Secretary at the Ministry of Consumer Affairs, Food and Public Distribution, it was stated: “The regulatory emphasis on alcohol should prioritize the development of quality brands, promoting responsible behavior, and minimizing health risks.”
Sula Vineyards, Allied Blenders & Distillers, Mohan Meakin, Radico Khaitan, Devans Modern Breweries, Globus Spirits, Jagatjit Industries, and Amrut Distilleries are among the members of CIABC.
“Brand extensions are valid initiatives. Due to past limitations, companies have mitigated risks by establishing parallel businesses. Given that introducing a new brand name is costly, companies often opt to extend existing brand names familiar to consumers, even across different product categories, as this familiarity enhances credibility,” as stated in the letter on behalf of the alcobev companies.
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