Alcobev companies seek clarification on classification between brand extension and surrogate advertising

On March 20, alcobev (alcohol beverage) makers expressed their concern with respect to the classification put down by the government on the difference between brand extension and surrogate advertising.

As stated by two alcobev companies, the Central Consumer Protection Authority’s (CCPA) new directive requires the companies to submit details highlighting their business activities related to brand extensions, highlighted a Business Standard report.

The heads of the companies also stressed upon the need for broader consultation, and its impact on ad expenditures.

On March 19, CCPA came across and highlighted numerous liquor brands that violated the existing regulations by advertising alcoholic beverages in mainstream media. This was by advertising under the guise of promoting other products or services which are associated with the same brand, stated the report.

The CCPA also emphasised on the need to develop comprehensive guidelines, and has given 15 days time to the alcobev companies to provide details pertaining to a list of products sold under the same brand name in the last three years. This is followed by highlighting details on the states where the products were marketed.

This is also followed by submitting details on the revenue and turnover data on the brand extension products over the past three years.

The companies are also expected to furnish data related to the sale of alcoholic beverages and total expenses incurred on promoting brand extensions. This included costs associated with collaborations, sponsorship events, award ceremonies, music festivals, television advertisements, social media promotions, payments to celebrities, and influencers over the past three years, stressed the report.

Read More: Rohit Kumar Singh, Secretary DoCA: ‘Need to halt surrogate ads’