Alcohol advertising hiccup: Will allowing responsible mktg bring the much-needed cheer(s)?

Since its first Bud Bowl advertisement in the Super Bowl, Budweiser beer, along with its ancillary brands, has created some of the most watched ads in the world over its 37-year run. Meanwhile, Indian cricket players have happily exhorted their fans to consume fizzy colas that have far more calories and sugar.

With the recent furore over surrogate advertising, as well as the fanfare of the ongoing World Cup, we relook Cable Television Networks (Regulation) Act 1995, which bans direct promotion of cigarettes, tobacco products, wine, beer and liquor, in the current Indian market that is bubbling up with local brewers, vintners and distillers.

“The biggest aspect is the monopoly, or at most duopoly, in the Indian market, where only a few players are controlling multiple brands and labels. Add on the ban on advertising in mainstream media, it becomes even tougher for new smaller brands to make their presence felt in markets,” says Abhinav Jindal, CEO, Founder, Kimaya Himalayan Beverages, which owns Bee Young and Yavira, a beer and pilsner brand respectively.

“I completely understand the ban on tobacco products as it is both more harmful and more addictive. But drinks, especially milder beverages, when enjoyed responsibly and legally, aren’t nearly as harmful, and the government can look at supporting local businesses in the latter industry through some form of advertising. And the market is growing exponentially across categories,” he opines.

Radico Khaitan Ltd recently unveiled its luxury range of products in both brown and white spirit categories. The launch of Magic Moments Dazzle Vodka and Royal Ranthambore Heritage Collection-Royal Crafted Whisky mark the onset of the festival season.

As Amar Sinha, COO, Radico Khaitan Limited, emphasises, “Vodka currently accounts for less than 5% of the domestic IMFL volumes compared to around 25- 30% globally. With the favourable demographic profile and changing consumer preferences, we believe that the vodka industry is bound to expand. Over the last five years, premium vodka space has grown at a faster pace than the overall vodka industry which is a positive sign.”

However, given the prohibition on advertising across mainstream India, where the ever growing number of cell phone users isn’t completely translating into as many smartphone users, companies can still take a while to cover every corner of the company.

“France has a wine promotion board, while Carlsberg sponsors FIFA and is promoted widely, and of course there’s the Super Bowl Budweiser ad. Local industries and made-in-India products need similar support, especially when you see so much happening in the space across the country,” expresses Jindal adding that no brand will be looking to court controversies.

Rocky Mohan, the grand old man of Old Monk, points out that the revered rum has never done any marketing, and the band’s pedigree survived almost entirely through word of mouth. “We did some in-shop advertising some 30 odd years ago and a few promotions at the Delhi, Mumbai, and Dubai airports, but apart from that people have celebrated and spread the word about our product because of its quality and price. It’s one spirit that both CEOs and their drivers can drink, and enjoy the same experience.”

“Look at what happened over the years; we had Glenlivet Books, Magic Moments CDs, and so much more. And at the same time, governments have taken their own calls, whether it’s Gujarat, Bihar or Goa. The fact of the matter is that no matter what, alcohol is addictive, and once we open the floodgates, people would find ways to exploit it,” states Mohan.

Ishwaraj Singh Bhatia, Co-founder and COO, Simba Craft Beer, says there are other tools in the marketing arsenal, especially for new brands, saying "Being a new age brand we rely heavily on social media and likeminded partnerships to connect with our consumers and create meaningful experiences. Responsible advertising in mainstream media platforms will definitely open newer avenues for the industry to reach a wider audience. Digital platforms have emerged as a boon for the alco-bev industry, introducing opportunities that were formerly unavailable to the sector to engage and grow their consumer base, especially given the limited reach and impact of surrogate messaging."

 "Customers today indulge in intensive research before consuming a particular product and Simba Craft Beer has done well on that front since its launch. However, unlike before, marketing today is a heterogeneous approach that encompasses various threads of a brand such as communication, strategy, product, activations and even consumer experience," notes Bhatia, adding, "Social media has not only allowed us to build deeper in-roads in metros but also in tier towns resulting in expansion of our digital footprint and Simba Craft Beer community.  So far, Simba’s virtual initiatives have been well received by our target audience, encouraging us to explore and create similar experiences."

“Instead of having a blanket ban, let us have some forms of advertising, which can help educate all legal-age consumers so that each person can make an informed decision. If there can be associations like Blender’s Pride with Fashion Week, then authorities should also allow us to advertise responsibly,” adds Jindal.

Hemanth Rao, founder of The Single Malt Amateur Club (SMAC), agrees. With close to 4000 registered members, ranging from amateur enthusiasts to tastemakers, across the globe, it has the distinction of having its own bottling from some of the most reputed distilleries. Rao points out, “The US lifted the Volstead (Prohibition) Act in 1933, and over that time has evolved a series of checks and balances to regulate the sale and advertising of beer. However, in the Indian ecosystem, authorities are only interested in the production guidelines, with no thought of the health aspects, and educating the public. And one of the best ways of doing that is responsible advertising.”