How Alcohol, “Music CDs,” and “Club Sodas” Are Testing the Limits of Surrogate Advertising

This is the second article in our series exploring the advertising laws in India. You can read our article covering the Infant Nutrition industry here.

Introduction

India’s advertising landscape for liquor brands is painted in regulatory red. While the law outrightly prohibits advertisements of alcohol, the liquor industry has long mastered the art of staying visible through legally ambiguous avenues, a practice known as surrogate advertising. From selling "music CDs" and "club sodas" to sponsoring events and merchandise, these brands are constantly testing the outer boundaries of the law.

This article explores how alcohol companies exploit loopholes through cleverly disguised brand extensions and what legal and regulatory responses are shaping up to keep this in check.

Understanding the Legal Landscape

Advertising of alcoholic beverages in India is restricted primarily by:

• The Cable Television Networks (Regulation) Act, 1995, which prohibits direct or indirect promotion of liquor on cable TV.

• The Advertising Standards Council of India (ASCI) Code, which bans advertisements of products that are prohibited by law or promote harmful practices.

• State-specific excise laws, which often impose stricter conditions on advertising within their jurisdiction.

• The Food Safety and Standards (Packaging and Labeling) Regulations, which further restrict misleading labels or promotional tactics.

Yet, despite these prohibitions, we see alcohol brands making regular appearances—in award shows, music festivals, cricket series, and even prime-time TV.

The Mechanics of Surrogate Advertising

Surrogate advertising involves promoting a product or service that is legally allowed but closely associated with a banned product, so much so that consumers automatically connect the dots. Think about:

• "Kingfisher Soda" when people mean Kingfisher beer.

• "Seagram's Music CDs" with the signature branding of premium whisky.

• "Blenders Pride Fashion Tour" hosted by a whisky brand, but featuring no whisky.

These are not coincidental. The aim is brand recall.

Requirements for Surrogate Advertising in India

The Advertising Standards Council of India (ASCI) and the Ministry of Information and Broadcasting have laid down certain conditions that must be satisfied for a surrogate advertisement to be considered legally valid. The most important requirements are:

1. Legitimacy of the Surrogate Product: The advertised product (club soda, music CD, bottled water, etc.) must be a genuine, standalone product, not a front.

2. Availability and Market Presence: The surrogate product should be widely available in the market across retail platforms and not just selectively distributed.

3. Sales Volume and Revenue: The product must generate actual, trackable sales and revenue. A surrogate with zero or negligible market activity is likely to be rejected.

4. Distinctive Branding: The branding and packaging of the surrogate must be distinct from the alcohol variant. Merely changing the label but retaining font, color scheme, or bottle shape could trigger regulatory scrutiny.

5. No Visual or Direct Cues: The ad should not contain visual elements (glasses, pouring shots, bar settings, etc.) that imply consumption of alcohol.

6. Certification and Self-Declaration: Brands may be required to submit an affidavit or declaration confirming the commercial viability of the surrogate product to ASCI or relevant authorities.

7. No Cross-Promotion: The ad for the surrogate product must not directly or indirectly promote the alcohol product by using common taglines, celebrities, or slogans.

   
   

Failure to meet these conditions may lead to the ad being flagged, taken down, or attract penalties.

Music CDs: Outdated Medium, Timeless Strategy

One of the most notorious surrogates is the use of music CDs. Brands like Seagram's and Royal Stag have launched entire music albums, sometimes accompanied by star-studded music videos or high-profile events.

This raises a fundamental question:Who still buys music CDs in the streaming age?

Answer: Almost no one. And that’s exactly why regulators see through the tactic. These music CDs are not profit-generating products, they exist solely to preserve liquor brand visibility in the public eye.

Legal Risk: Since the music CD market is non-existent, the ASCI has flagged such tactics as non-genuine surrogates. If the brand extension has no independent market presence, it is liable to be considered a disguised liquor ad.

Club Sodas and Bottled Water: The New Surrogates

In response to scrutiny on music CDs, alcohol companies pivoted to club sodas, bottled water, and mineral water, products that are at least consumable and legally allowed.

You’ll find labels like:

• "Bagpiper Club Soda"

• "Imperial Blue Packaged Drinking Water"

• "Royal Challenge Soda"

These brand extensions often mimic the original alcohol packaging, fonts, and colors. This results in strong consumer association with the liquor variant, even if the product is technically not alcohol.

Regulatory Take: In 2019, ASCI laid down that the surrogate product must have substantial sales and independent brand identity. If not, it is presumed to be a surrogate and can be banned.

How Far Is Too Far? The Blurred Boundaries

Some brands go further by sponsoring entertainment events, fashion weeks, sports leagues, or awards with brand names that echo their alcohol products.Examples:

• Blenders Pride Fashion Tour

• Royal Stag Mega Music

• McDowell’s No.1 Yaari Jam

These campaigns don't show the liquor bottle but everything else reminds you of it.

Regulators face an uphill task of proving the intent to promote alcohol unless there is a clear causal link between the surrogate product and the actual alcohol.

Enforcement & Challenges

The Ministry of Information and Broadcasting, in coordination with FSSAI and ASCI, periodically issues notices or bans ads that clearly cross the line.

Recent actions include:

• Banning liquor brand campaigns that were passed off as music shows but featured no actual music product on shelves.

• Issuance of advisories to TV channels and print media for running surrogate ads.

• Increased scrutiny on digital and influencer-led advertising, where disclaimers are often missing.

However, enforcement is often reactive and inconsistent, especially across states. Liquor remains a state subject, and interpretation varies.

What This Means for Brands and Legal Teams

Companies looking to stay on the right side of the law must:

• Ensure the surrogate product has genuine commercial value.

• Maintain distinct packaging and marketing from the parent alcohol brand.

• Avoid cross-promotion between the surrogate and the actual alcohol product.

• Keep record of sales, distribution, and marketing expenditure of the surrogate.

Legal teams must also prepare for pre-vetting advertisements with ASCI or relevant state excise departments to avoid costly bans or penalties.

Conclusion

India’s surrogate advertising landscape walks a fine legal tightrope, where music CDs, bottled water, and soda bottles serve as veiled placeholders for whisky and rum. While the regulatory system is catching up, brands continue to evolve their tactics.

The legal question remains: Is the surrogate a real product, or a real ruse?

As enforcement tightens and consumer awareness grows, brands—and their legal advisors—must rethink how to balance visibility with compliance. The days of hiding liquor ads in plain sight may be numbered.