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The Central Consumer Protection Authority (CCPA) is developing new rules to restrict celebrities and influencers from promoting alcohol and tobacco products through surrogate advertising. According to media reports, the guidelines will include fines of up to ₹50 lakh for violating the restrictions on surrogate ads.

Under these new rules, which are being drafted by the central consumer protection agency, celebrities and influencers found engaging in surrogate ads will incur a ₹10 lakh penalty for a first violation and a ₹50 lakh fine for each additional violation.

Draft guidelines indicate that celebrities and social media influencers must avoid promoting restricted products, such as alcohol or tobacco. Celebrities endorsing items like soda, bottled water, CDs, USB drives, or apparel are required to ensure that these products don’t have messaging, branding, or packaging that closely resembles any alcohol or other restricted brands.

India has a total ban on tobacco and alcohol advertising. However, liquor brands often circumvent this restriction by advertising sodas or other products. The new rules aim to prevent brands from subtly promoting restricted items by linking them to permissible products.

Recently, the CCPA issued notices to Bacardi, Pernod Ricard, United Breweries, Radico Khaitan, and William Grant & Sons for allegedly promoting alcohol indirectly by advertising non-alcoholic products with similar branding.

Celebs, Influencers will face Rs 50 Lakh fine for surrogate alcohol and tobacco ads

The premium liquor category has provided some relief to liquor manufacturers this festive season, driven by young consumers upgrading their preferences and habitual drinkers transitioning to premium options. Liquor brands have increased their ad spends by 15-20 percent focusing on digital and experiential mediums. 

India’s $32-billion liquor industry is projected to grow by an additional $7 billion by 2028, according to London-based drinks consultancy IWSR. Manufacturers, from whisky to beer producers, are ramping up production, betting on the country's young population—460 million, or 33 percent of Indians, are of legal drinking age, according to the Economic Survey.

In fiscal year 2023, the industry sold 385 million cases of 9 liters each, representing a 14 percent growth over fiscal year 2022 and a 12 percent increase compared to pre-COVID levels in fiscal year 2020, according to data released by the Confederation of Indian Alcoholic Beverage Companies (CIABC) in July. In 2023, liquor sales in Delhi increased by 31% during the festive season compared to the same period last year.

Premium Liquor in Demand

Recently, Diageo expanded its McDowell’s & Co. portfolio with the X Series, venturing into white spirits and dark rum. The lineup features Vodka, Dry Gin, Citron Rum, and Dark Rum, marking the brand's move into new categories.

Vikram Damodaran, Chief Innovation Officer at Diageo India, told Storyboard18, "Premiumization stems from changes in core consumer behavior. Disposable income has been increasing, especially among the youngest drinking demographic. These consumers are exploring a variety of categories, and premiumization is the way to meet this demand through value, offerings, and variety."

Discussing Diageo's focus on two types of consumers—affluent and young—Damodaran said, "Affluent consumers desire unique products and personalized experiences, such as limited edition bottles, while younger consumers are embracing cocktail culture, seeking variety in flavors and categories."

Jitin Merani, Co-founder of The Glenwalk, said, "There’s been a shift towards premium brands and products, which has led to higher revenue generation for various alcohol and beverage companies. The premium segment has grown significantly, with its share rising from 42% to 49%."

Increase in Ad Spending

The Glenwalk is on track to cross Rs 100 crore in sales this festive season, targeting 100,000 cases sold by December 31. The company has increased its ad spend by 20 percent to expand its reach.

Merani commented, "Our team has been efficient, and we’ve taken an optimized approach to ad spending. While we’ve entered new markets that require launch resources, our below-the-line (BTL) spends are within budget, although trade marketing and material procurement costs have been higher per case this year."

He added, "We’re focusing on maintaining our relevance and staying consistent with the approach we adopted last year. We’ve wisely allocated more budget to influencer marketing and digital initiatives to ensure our marketing communications are fully monitored."

Merani also highlighted their use of digital media through social platforms and partner opinion leaders, noting, "We can’t do much with traditional media like TV, radio, or print, so we’re working on creating brand extensions that could drive our above-the-line (ATL) efforts."

Latambarcem Brewers, expecting 1,100 percent revenue growth compared to last year, introduced two new premium mass-market products: The Rocket Rice Lager and Super Maka 15%. Discussing ad spending, co-founder Ishan Varshnei said, "This year has been crucial for us as we’ve expanded our market presence. We’ve increased our ad spend by 30% to sustain this momentum."

He further explained, "As consumer preferences evolve and demand for premium, craft beverages grows, we’ve focused on amplifying our reach across both digital and offline channels to engage a broader audience."

Varshnei also noted that Latambarcem has expanded its offline presence through events and experiential marketing, stating, "This holistic approach has significantly boosted our brand presence, aligning with consumers' rising interest in authentic, premium experiences."

Upgrading to Premium

Moksh Sani, Founder and Director of Living Liquidz, observed that regular drinkers are upgrading to premium liquor. He said, "Indian consumers, especially the younger generation, are becoming more conscious of their alcohol choices. With access to information on the internet and companies’ focus on showcasing their brands via social media and digital platforms, consumers are increasingly influenced to try premium alcohol, resulting in this upgrade."

Latambarcem’s Varshnei added, "Over the years, we’ve noticed a subtle yet significant shift among habitual drinkers. Many are seeking not just a drink but an elevated experience. This has led to a natural transition towards premium liquor, as consumers look for refined flavors and better-quality ingredients."

He continued, "This trend reflects a broader mindset shift—people are willing to invest more in what they consume, seeking brands that align with their evolving preferences. At Maka di, we see this as an exciting opportunity to introduce consumers to the craftsmanship behind our brews, offering a unique blend of premium ingredients and authentic experiences."

Shifting consumer preferences and a younger, more discerning drinking population, is driving significant growth in India’s alcohol industry. With premiumization at the forefront, liquor manufacturers are well-positioned to capture the market’s evolving tastes and preferences in the coming years.

Tipplers to raise their bar this festive season, premium liquor in demand

Shweta Jain, Chief business development officer: Luxury Reserve and Craft – India and South Asia at Diageo has stepped down. 

Jain announced the movement in a LinkedIn post that started off with John Legend and Rajakumari’s Walker/ Walkers and Co anthem.

“Marked my last days at Diageo this week and spent them well with people who fuel it all. You have all left me with huge gratitude for your partnership in every dimension possible. Teams, stakeholders, colleagues who walk the talk, learn and unlearn , challenge, equally get challenged and yet prevail. A gigantic thanks for every bit of the enrichment that I leave with,” read an excerpt from the post.  


On what’s next for her she said, “A new chapter you say… I say its time for a new book! Very excited for the leap on the horizon... but for now, it's all about a wee savour the pause!”


Jain who is also Member Board of Directors, Nao Spirits and Beverages Private Ltd has been with Diageo for over six years working across teams. Prior to Diageo, she was the head of marketing at William Grant & Sons. Janin has also worked in companies like ShopsClues, Pernod Ricard India, Ogilvy, McCann Worldgroup, Gillette India, Rediffusion DY&R.



Diageo India’s Shweta Jain quits; Jain was the chief business development officer

DIAGEO INDIA