We strictly comply with regulations and promote responsibly: Varuna Koorichha from Diageo

What was it like for you to transition from a category as limitless as Pepsi to one that has as many restrictions as alcohol?

The transition was frustrating at first. There are many limitations in this category – media dark, so to speak. However, looking at the evolving media landscape, traditional ads such as 60-second ads are on the decline. Today, digital channels and influencers are driving marketing, and alcohol brands, especially in India, are leading the game. We focus more on experiential marketing, PR (public relations) and advocacy. At the point of sale, both on- and off-site, it’s all about people engaging with the product, which is like going back to old school marketing.

How do you balance restrictions on alcohol advertising while still reaching your audience?

Even though alcohol marketing is limited, we can still use three of the four classic P’s: product, price and place. We focus on experiential marketing and let the product speak for itself. Alcohol consumers are more engaged than in categories such as Pepsi. They pay for quality and want to be associated with brands that resonate with their values. Our marketing reflects this – whether through brand support or creating meaningful brand experiences.

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The surrogate ad has been analyzed. How do you deal with this at Diageo?

We do not consider our brand extensions to be surrogate advertising. These are legitimate business extensions to adjacent categories. We fully comply with all advertising regulations. In fact, three years after launching the brand, we are only able to allocate up to 50% of its revenues to advertising, and we strictly adhere to this.

(The Advertising Standards Board of India Code states that the advertising budget for a brand extension should not exceed 200% of sales turnover in the first and second year after launch, 100% in the third year, 50% in the fourth year and 30% thereafter. )

How do you respond to the growing demand for integration in advertising?

We have moved towards intentional brand positioning. Social inclusion is at the core, whether it’s representing people with disabilities, women or the LGBTQIA+ community. For example, we recently launched a campaign for McDowell’s featuring Kartik Aaryan, where he learns sign language for his friend. To spread this message, we even took over leading Indian newspapers running advertisements in sign language.

What role do influencers and digital technologies play in your marketing strategy?

Influencers and digital platforms are key. We spend approximately 50% of our marketing budget on events and 30% on digital activities, including influencers. For mass-market brands like McDowell’s and Royal Challenge, we still need to reach a wide audience, which is why mass media such as television and cinema remain important. However, digital marketing and influencer marketing are helping us connect with younger consumers in a more meaningful and authentic way.

Could you share the key brands in Diageo’s prestigious portfolio and their positioning?

Our prestigious portfolio includes some of the most well-known and trusted brands in India. We have McDowell’s No. 1, the world’s best-selling whiskey, Royal Challenge, Signature and Antiquity. Each brand serves different consumer segments, but shares a common focus on quality and heritage. McDowell’s is our flagship brand, known for its rich heritage and mass appeal. Royal Challenge means daring and is closely associated with cricket and sportsmanship. Signature leads the way in sustainability with campaigns centered around nature and craftsmanship. Antiquity represents refined luxury, aimed at the upper echelons of whiskey drinking. We also recently launched Royal Challenge American Pride (RCAP) to meet the needs of premium consumers looking for innovation and quality. Each brand plays a key role in meeting the diverse needs of our consumers, while strengthening Diageo’s leading position in the premium segment.

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Does McDowell’s premiumization threaten to cannibalize the mid-tier portfolio?

Not really. The alcohol market in India is growing rapidly and there is room for everyone. McDowell’s is the world’s best-selling whiskey with a 125-year tradition. It was a natural move toward premium as today’s consumers seek quality, experiment with options and embrace new-age brands that reflect their identity.

How do you deal with distribution challenges across states with different policies?

We comply with government regulations in each state and adapt our strategies accordingly. Prices and policies may vary, but consumption continues and we ensure compliance. Diageo is committed to responsible marketing and educating consumers about responsible drinking through programs such as our ‘Drink better, not more’ initiative.

Sustainability is increasingly important to consumers. What is Diageo doing in this space?

Sustainability is key to our brand, especially with Signature leading our sustainability efforts. Our campaigns, such as the iconic mangrove restoration project in Odisha, reflect our commitment to conservation. We’re always looking for ways to align our brands with sustainable practices, ensuring we don’t just talk the talk, but take action.