For an industry that’s built around brand stories, distinct identities, bottling heritage and craftsmanship to innovation and aspiration, few things matter more than trust. But what happens when regulatory scrutiny enters the picture?
Trust, built on years of hard work and resilience, can easily crumble in the face of regulatory scrutiny. And trust is tested on more than one front.
Recent regulatory action involving selected whisky and rum products has put questions around product identity, composition, labelling and manufacturing practices under renewed focus. But as industry voices point out, the conversation need not be reduced to a question of compliance alone. For India’s thriving alcobev industry, where total beverage alcohol volumes grew at a compound annual rate of three per cent between 2019 and 2024, the bigger question is what moments like these say about the relationship between brands and the consumers.
Sanjiv Kumar Puri, Regional Director – Indian Sub-continent, Angus Dundee Distillers, points out that recent action by the Food Safety and Standards Authority of India concerns “specific whisky and rum products and manufacturing units, rather than the alcobev sector at large. Some of these matters are also subject to legal review.”
That distinction is quite important. Regulatory scrutiny should not automatically translate into suspicion around an entire category or the industry as a whole.
However, that scrutiny is an opportunity for producers and manufacturers to reflect on how products are made, presented, and brought to market.
In his view, Sanjiv Kumar Puri says that “transparent labels, credible claims, consistent liquid and verifiable production records” will increasingly influence not just purchasing decisions but distributor confidence and strengthen brand valuation. And that may be the more important conversation to have.
Does trust come into the picture only after a crisis or is it something to be built long before one. Mokksh Sani, Founder of Living Liquidz and Co-Founder of The Glenwalk, puts the question of trust rather simply: “it is something that is built before a crisis and continues to be earned after one.”
“Consumers today are quick to question brands and look beyond just what is being advertised,” he says. “They want to know what a brand stands for and whether its actions match its communication.”
And that shift is significant.
Today’s consumers know what they want and have access to information more than ever before. Product descriptions can be scrutinized, labels can be compared, and claims can be verified. This strikes an important conversation around a brand long after an advertisement campaign glosses over the product.
For alcobev brands, this makes authenticity less of a marketing buzzword and more of a business requirement. One simply can’t cut corners when it comes to authenticity.
A polished campaign can create curiosity. A clever bottle can get attention. A celebrity association can generate aspiration. But none of these can permanently compensate for a disconnect between the brand promise and the actual product. So we think that trust is a cumulative sum of all these processes.
Transparency is an increasingly popular word in brand conversations, but in the alcobev industry it needs to mean something concrete.
Gorakh Gaikwad, Chief Operating Officer and Chief Winemaker at Sula Vineyards, believes the current situation is a reminder for the industry to be more thoughtful about how it markets, communicates and conducts itself.
At Sula, he says, “consumer trust starts with providing clear and accurate product information and maintaining high standards across every stage of the business.” That puts the spotlight firmly on the fundamentals.
Everything from the label to the description and marketing claims to manufacturing and documentation processes are building blocks of credibility.
Sanjiv Kumar Puri's emphasis on transparency in each process points towards a “larger opportunity that lies in building an industry recognized for technical competence and authentic offerings.”
Looking at the current conversation on regulatory scrutiny on liquor brands, the simplest, yet the most important question to ask is: “does the product match the promise?”
Mokksh Sani speaks about the importance of ensuring that a brand's actions match its communication.
Gorakh Gaikwad highlights accurate product information and consistency.
And Sanjiv Kumar Puri points towards credible claims, consistent liquid and verifiable production records.
In retrospect, these arguments hint towards an industry-wide shift in how alcobev brands may need to think about building a brand. Today, the product is a vital part of the marketing story yet consumers aren’t simply buying a name or an attractive bottle. They are buying into a set of expectations around quality, value, and craftsmanship. If those expectations are met consistently, trust grows. But if there’s a disconnect, consumers notice. And once consumers start questioning a brand, winning them back is considerably harder than earning their confidence in the first place.
The story doesn’t end with the action itself when a brand is facing regulatory scrutiny. Consumers also look at how the brand reacts, speaks and moves forward. This is where responsible messaging can make or break the brand.
So the question for brands shouldn’t be whether a particular message is technically communicable. It should also be whether that message is clear, responsible and a true reflection of the product.
A carefully worded statement may address an immediate concern. A well-crafted PR statement may help soften the backlash. But neither, on its own, can rebuild trust.
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Mokksh Sani's observation that “trust continues to be earned after a crisis” is perhaps the most useful lens through which to view the current moment.
For an industry as competitive and rapidly evolving as alcobev, regulatory scrutiny may be unavoidable. But the way brands respond to it is a choice. Regulation may seem like an obstacle but it is up to the brands to treat it instead as a prompt to examine the fundamentals of their business.
As headlines fade away and the scrutiny moves elsewhere, consumers will still be holding the bottle. And ultimately, that is where trust is tested.
