ETHICS IN ALCOHOL INDUSTRY

Eesha Ahuja 03, Neha Kamat 17, Vinita Rodrigues 43, Amritha Suvarna 60, Tanvi Chheda - 61 Indian Liquor Industry with estimated market value of INR 340 bn is growing at about 20 percent annually. India is the dominant producer of alcohol in the South-East Asia region (65 per cent) and contributes to about 7% of the total alcohol beverage imports into the region. United spirits with 60 % of market share in IMFL is the undisputed leader. The major international players are Pernod Richard, Remy Cointreau, and Diageo. ALCOHOL AND ITS EFFECTS Alcohol affects all parts of the body majorly affecting the Liver and the Kidneys. It also affects social and family life leading to violence, marital conflicts, infidelity, jealousy, economic insecurity. However research has shown that Sensible drinking which is moderate drinking helps in increased life span, reduces risks of heart problems and prevents various other diseases. ADVERTISING Marketing of alcohol in India is done through surrogate advertising i.e. creating brand extensions with the same brand name. Surrogate advertising is illegal in India according to the AICA 1995. The strong argument against the marketing of alcohol is that it has a bad influence on Indian culture as it promotes pride and celebration. Trends of alcohol marketing are changing with industry biggies like MALLYA GROUP sponsoring sports and cultural events to promote their brand. But there are quite a few brands like SEAGRAMS ROYAL STAG, KINGFISHER PREMIUM which have had to withdraw their campaigns as they have gone beyond the framed rules for marketing. There are no proper guidelines prescribed by the law of India on surrogate advertising enabling marketers to take advantage of the loopholes. MANUFACTURING PROCESS AND CSR INITIATIVES Country liquor has a lot of flaws in its manufacturing process. It is made of local ingredients and in many cases industrial spirits and methyl alcohol has been used in place of ethanol which is toxic and fatal. The organized sector practices better and ethical production standards. Liquor companies also realize their responsibility in creating awareness of the ill effects of alcohol. Many companies like Diageos, Bacardi, SABMiller and Pernod Ricard have started with various CSR initiatives to create awareness against drunken driving and promote responsible drinking. REASONS FOR PRODUCTION OF ALCOHOL IN INDIA 1. Heavy Demand India consumes 2/3 of the total alcohol in South East Asia. The population in the country is young and is the major consumer of alcohol. 2. Government Revenues Alcohol production provides substantial taxes to the states amounting to 1/4th of the state budget. Alcohol policy is under the legislation of the individual states and so an All India ban is not possible. Gujarat has banned alcohol but to low levels of success. 3. Employment The alcohol industry provides employment to approximately 1.5 million people in the country and also benefits the health and pharmaceutical industry. CONCLUSION - Production and consumption of alcohol should not be considered to be unethical. Addiction to alcohol is what should be termed as an unethical practice.