Growing regulatory and judicial scrutiny of the food and beverage sector is prompting celebrities and influencers to rethink their endorsement deals, with at least a dozen personalities reportedly stepping back from new brand associations.
People familiar with the decisions said a leading Bollywood actor has declined a proposed endorsement for a global chocolate brand, while another celebrity has withdrawn from a deal with one of India’s major snacks companies ahead of the upcoming festive season.
The shift comes at a time when food and beverage brands traditionally increase spending on celebrity-led advertising, particularly for categories such as chocolates, snacks and other indulgence products during the high-sales festive period.
A senior executive at a Mumbai-based talent management firm said the industry is witnessing an unusual level of caution among celebrities and influencers. According to the executive, two endorsement deals that had been under discussion since April were cancelled amid concerns over the regulatory environment.
The growing caution comes as the Food Safety and Standards Authority of India (FSSAI) faces increased judicial scrutiny over proposed mandatory labelling requirements for packaged foods containing high levels of salt, sugar and fat. The regulator has also warned celebrities against promoting food products through unverified or misleading claims.
For celebrities, however, the biggest concern appears to be reputational damage rather than financial penalties. Advertising industry experts said social media criticism, public scrutiny and the possibility of regulatory action could have a lasting impact on an endorser’s image.
Advertising executive Sandeep Goyal said celebrities are increasingly concerned about the possibility of stringent action and the reputational consequences that can follow. The changing environment, he said, signals a growing recognition among endorsers that regulatory provisions cannot be ignored.
The regulatory pressure has extended beyond packaged foods. On August 16, the Maharashtra Food and Drug Administration issued show-cause notices to actors ShahRukh Khan, Ajay Devgn and Tiger Shroff over their endorsements of Vimal Elaichi, alleging that the advertisements indirectly promoted pan masala and tobacco-related products carrying the same brand name.
Celebrity management executives said their clients have consequently increased scrutiny of endorsement contracts and brand claims. However, they also maintained that celebrities cannot be expected to take responsibility for every regulatory lapse committed by a brand.
The developments could lead to greater due diligence before celebrities sign food and beverage endorsement agreements, potentially forcing brands to provide stronger assurances on product compliance, advertising claims and regulatory requirements.
With enforcement and legal scrutiny intensifying, the F&B industry may increasingly have to account not only for the commercial value of celebrity endorsements but also for the reputational risks associated with them.