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• India Liquor, Tobacco Firms Shift Tack 

Now, following complaints by health activists, the Indian government is clamping down on surrogate TV ads. In late March, it ordered broadcasters to stop airing ads from tobacco and liquor companies for products with names identical to their tobacco and liquor brands, regardless of the product being promoted. Though several brands were granted an exemption, the move could cost broadcasters as much as $50 million in lost advertising revenue, according to estimates by industry analysts. If the government decides to bar surrogate ads in other media, such as print, the cost to media companies would rise.

In response, liquor companies and tobacco businesses, which have some of the strongest brand names in India despite the restrictions, are beginning to carve out an alternative outlet: sponsorships. Many are pouring money into the branding of sports teams, concerts and other entertainment events. While the government has challenged the legality of liquor and tobacco sponsorships in sports, the marketers have so far prevailed. . . .

Indian tobacco companies got a head start on making the transition out of surrogate ads, as they started moving to sponsorships after the global crackdown on tobacco advertising more than a decade ago. Since 1990, cigarette maker Godfrey Phillips India has been handing out "Godfrey Phillips Bravery Awards" to people who have helped strangers in need. Originally, the awards were named after the company's Red & White cigarette brand, but that was changed in 2003. Rival ITC sponsors an annual fashion week in India under the Wills name.

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