We strictly adhere to regulations and promote responsibly: Diageo’s Varun Koorichh

How has the transition been for you from a highly unrestricted category like Pepsi to one with so many limitations, like alcohol?

The transition was initially frustrating. In this category, there are many restrictions—media-dark, so to speak. But when you look at the evolving media landscape, traditional advertising, like 60-second ads, is fading. Today, digital channels and influencers drive marketing, and alcohol brands, especially in India, are ahead in this game. We focus more on experiential marketing, PR (public relations) and advocacy. At the point of sale, both on- and off-premise, it’s about having people engage with the product, which feels like a return to old-school marketing.

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

Even though alcohol marketing is restricted, 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 involved than in categories like Pepsi. They’re paying for quality and want to associate with brands that resonate with their values. Our marketing reflects that—whether it’s through advocacy or creating meaningful brand experiences.

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Surrogate advertising has come under scrutiny. How do you manage this at Diageo?

We don’t consider our brand extensions as surrogate advertising. These are legitimate business extensions in adjacent categories. We fully comply with all advertising regulations. In fact, after three years of launching a brand extension, we can only spend up to 50% of its revenue on advertising, and we follow that closely.

(The Advertising Standards Council of India Code states that the advertising budget for a brand extension should not exceed 200% of sales turnover in years one and two after the launch, 100% in year three, 50% in year four and 30% thereafter.)

How are you addressing the growing demand for inclusivity in advertising?

We’ve moved toward purposeful brand positioning. Inclusivity is core to that, whether it’s representing differently abled people, women or LGBTQIA+ communities. For example, we recently launched a campaign for McDowell’s featuring Kartik Aaryan, where he learns sign language for his friend. We even took over leading Indian newspapers with ads in sign language to spread this message.

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

Influencers and digital platforms are crucial. Roughly 50% of our marketing budget goes to events and 30% to digital, which includes influencers. For mass brands like McDowell’s and Royal Challenge, we still need to reach a broad audience, so mass media like TV and cinema remain important. But digital and influencer marketing help us engage with younger consumers in a more meaningful, authentic way.

Could you break down the key brands in Diageo’s prestige portfolio and their positioning?

Our prestige 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 caters to different consumer segments but shares a common focus on quality and heritage. McDowell’s is our flagship brand, known for its rich legacy and mass appeal. Royal Challenge stands for boldness and is closely associated with cricket and sportsmanship. Signature leads in the sustainability space, with campaigns centred around nature and craftsmanship. Antiquity represents refined luxury, targeting the upper echelon of whiskey drinkers. We also recently introduced Royal Challenge American Pride (RCAP) to cater to premium consumers seeking innovation and quality. Each brand plays a critical role in meeting the diverse needs of our consumers while reinforcing Diageo’s leadership in the premium segment.

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Does premiumizing McDowell’s risk cannibalizing your mid-level portfolio?

Not really. The alcohol market in India is growing fast, and there’s space for everyone. McDowell’s is the world’s top-selling whiskey, with a 125-year legacy. It was a natural move to premiumize because today’s consumers are looking for quality, experimenting with different options and embracing new-age brands that reflect their identity.

How do you manage distribution challenges across states with varying policies?

We comply with government regulations in each state and adjust our strategies accordingly. Pricing and policies may vary, but consumption continues, and we ensure compliance. Diageo is committed to responsible marketing and educating consumers on responsible drinking through programmes like our ‘Drink Better, Not More’ initiative.

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

Sustainability is key to our brand, particularly with Signature, which leads our sustainability efforts. Our campaigns, such as the Signature Mangrove Restoration Project in Odisha, reflect our commitment to protecting nature. We’re always looking for ways to align our brands with sustainable practices, ensuring that we’re not just talking but taking action.