In Part 1 of the blog post series, we explored the complex and multi-layered regulatory framework governing alcohol advertising and packaging in India. We discussed how both central and state laws — shaped by constitutional mandates, statutory provisions, and evolving self-regulatory guidelines — intersect to create a challenging compliance landscape. As we highlighted, the rise of surrogate advertising and the tightening grip of regulators have significantly reshaped industry practices. In this second part, we turn our focus to the fast-evolving regulatory environment specific to digital media, packaging and labelling norms, and the divergent approaches adopted by Indian states. As online platforms become increasingly central to brand communication and consumer engagement, and as product labelling becomes a site of regulatory scrutiny, it is essential to unpack the distinct legal developments shaping the alcohol industry’s future in India.

The Digital Frontier: Social Media and OTT Platforms

Digital media, including social media platforms and Over-The-Top (“OTT”) streaming services, initially represented a less regulated space for alcohol promotion. Brands leveraged these channels for direct and indirect marketing, often using influencers and visually appealing content. However, regulatory scrutiny is catching up. ASCI actively monitors digital platforms, reporting direct alcohol advertisements and influencer promotions to relevant authorities. ASCI’s guidelines for influencers mandate clear disclosure of paid promotions and due diligence regarding advertiser claims.

The Ministry of Information and Broadcasting (“MIB”) has issued multiple advisories directed at OTT platforms, emphasizing compliance with the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021. These advisories mandate:

  • Stricter Content Classification: Content depicting alcohol, drugs, or tobacco misuse, or potentially dangerous behaviour, must receive higher age ratings (e.g., ‘A’ rating) to restrict access by minors.
  • Avoiding Glamorization: Portrayals of substance use should not make it appear fashionable or socially acceptable.
  • Warnings and Disclaimers: Content featuring drug or alcohol use should include clear warnings about harmful consequences and potentially public health messages.
  • Legal Compliance: Platforms are reminded that promoting illegal activities (including potential abetment of substance use under the Narcotic Drugs and Psychotropic Substances Act, 1985) is prohibited.  

MIB is also in the process of formulating specific rules to regulate online advertisements generally. Despite these efforts, enforcement on digital platforms remains challenging due to their borderless nature. The increasing regulatory focus signifies that the perceived ‘grey area’ of digital marketing for alcohol is shrinking, demanding greater caution and compliance from businesses utilizing these channels.

Packaging and Labelling Mandates: The FSSAI Regime

The packaging and labelling of alcoholic beverages sold in India are primarily governed by the Food Safety and Standards (Alcoholic Beverages) Regulations, 2018, issued by Food Safety and Standards Authority of India (“FSSAI”) under the Food Safety and Standards Act, 2006. These regulations, supplemented by the general labelling and packaging standards, impose highly specific and mandatory requirements. Key labelling requirements include:

• Statutory Warning: A mandatory warning must be printed prominently. This must be in English, though states may permit additional local languages.


• Font Size: The warning’s font size is regulated based on package volume.


• Alcohol Content Declaration: Alcohol content must be declared as percentage alcohol by volume (% abv) or as proof. Specific tolerance limits for declared strength are also defined.


• Prohibition on Health Claims: Making any health claims on alcoholic beverage labels is strictly prohibited.


• Nutritional Information: Labels generally cannot contain nutritional information, with the exception of a voluntary declaration of energy content in kcal.


• Allergen Information: Potential allergens must be declared. For wines, this includes declarations if sulphur dioxide exceeds 10 mg/litre or if residues of animal-origin fining agents (like egg white or isinglass) are present. A non-vegetarian logo is required if such residues are present.


• Other Mandatory Details: Labels must also include the product name, list of ingredients (if applicable), manufacturer’s name and address, batch number, date of manufacture, “Best Before” or “Use By” date (for beverages <10% abv other than wine), country of origin for imported beverages, and relevant FSSAI logo and license number.


• Specific Product Standards: The regulations define standards for various beverage types (e.g., brandy origin, whisky definitions like single malt/single grain, low alcoholic beverages) which impact labelling. Matured spirits must be aged for at least one year, and age claims must refer to the youngest spirit in a blend.


• Bulk Containers: Containers not intended for retail sale must carry the declaration “For Manufacturer of Alcoholic Beverages only”.

In addition, products sold through e-commerce platforms are also subject to the Legal Metrology (Packaged Commodities) Rules, 2011, which require key declarations—like MRP, net content, and origin—to be displayed online. While FSSAI regulations primarily target physical labelling, companies operating through digital channels must ensure alignment with these consumer protection rules.

Labels on alcoholic beverages must comply with state-specific excise laws, many of which impose additional sticker or hologram requirements, barcoding for traceability, and unique identification numbers for tax and anti-counterfeiting purposes. For instance, states like Maharashtra and Delhi mandate digital label registration through online excise portals before products can be sold. Imported alcoholic products require label rectification at bonded warehouses before clearance for sale, if they do not fully comply with Indian norms. This includes affixing FSSAI license numbers, standardised warnings, and converting non-metric declarations (e.g., ounces, proof) into Indian-accepted units.

Rules Governing Sale and Consumption: A State-by-State Affair

Legal Drinking Age

A prime example of state variation is the Legal Drinking Age (LDA). There is no uniform national LDA; it ranges from 18 in some states to 25 in others. Some states even differentiate the LDA based on the type of alcoholic beverage. For instance, Maharashtra permits beer and wine consumption at 21 but restricts spirits consumption until age 25. This fragmentation requires businesses involved in retail or hospitality to be acutely aware of and enforce the specific LDA in each state of operation.  

Prohibition and Licensing

Several states enforce complete prohibition on alcohol sale and consumption, including Bihar, Gujarat, Nagaland, Mizoram, and the Union Territory of Lakshadweep. Manipur has partial prohibition. In states permitting alcohol, obtaining licenses issued by the state excise department is mandatory for manufacturing, wholesale distribution, and retail sale State laws may also dictate operational parameters like permissible locations (e.g., minimum distance from schools, places of worship, highways) and operating hours. The legality of online sales and home delivery remains ambiguous in most states, generally requiring specific amendments to existing excise laws, though some states explored this during the COVID-19 pandemic.  

Conclusion

The regulatory framework governing alcoholic beverages in India is exceptionally intricate, characterized by a division of powers between the Centre and States, stringent advertising prohibitions that are continuously evolving to counter surrogate and digital marketing tactics, detailed FSSAI mandates for packaging and labelling, and highly localized rules for sale and consumption. The constitutional designation of alcohol as a state subject creates a diverse and often complex operational environment across the country.  

Businesses operating in this sector face significant compliance challenges. The near-total ban on direct advertising has pushed promotion into grey areas like brand extensions and digital media, which are now under intense scrutiny from regulators like ASCI, CCPA, and MIB, leading to stricter guidelines and enforcement actions. FSSAI’s detailed labelling requirements demand meticulous attention to detail to avoid penalties. Furthermore, the wide variations in state laws regarding legal drinking age, licensing, sale conditions, and consumption rules necessitate tailored compliance strategies for each region of operation.  Navigating this complex and dynamic regulatory landscape requires constant vigilance and a proactive approach to compliance. The trend towards stricter regulation, particularly concerning advertising practices and online content, underscores the substantial legal, financial, and reputational risks associated with non-adherence.