Just a week after the centre’s directive to alcobev makers to submit a list of products sold as surrogate extensions, the Confederation of Indian Alcoholic Beverage Companies (CIABC) has urged the consumer affairs ministry to let liquor companies have an unfettered right to advertise the brand extensions. “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,” it said.
On March 20, the Central Consumer Protection Authority (CCPA) asked liquor companies to ensure that there is no violation of the norms and sought a list of products sold under the same brand as alcohol beverages (known as brand extensions) in the last three years, after identifying several instances of liquor brands violating regulations of surrogate advertising. It also asked for revenue and turnover data related to the sale of alcobev as well as on brand extension products (such as mineral water, playing cards and music CDs) besides payments to celebrities and other sponsorship details.
The CIABC letter to the ministry added, “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.” Liquor industry group lobby also added that the regulatory focus on alcohol should be “on creating quality brands, encouraging responsible behaviour and reducing health risks”.
CIABC’s members include Allied Blenders & Distillers, Amrut Distilleries, Devans Modern Breweries, Globus Spirits, Jagatjit Industries, Mohan Meakin, Radico Khaitan and Sula Vineyards.