Diageo warned by India over misleading whisky cask maturation claims

India's food safety regulator has issued a formal warning to liquor manufacturer Diageo over product labelling. According to reporting by Reuters via Aol, the Food Safety and Standards Authority of India took issue with assertions that a prominent whisky brand was matured in American oak casks.

The regulatory scrutiny arrives amid broader enforcement efforts affecting the alcohol sector, where authorities have also raised questions regarding artificial flavouring practices. The Food Safety and Standards Authority of India flagged the labelling in a confidential notice reviewed by Reuters. The document states that while the front label highlights maturation in oak casks, the underlying mixture relies heavily on non-matured spirit alongside grain neutral spirit.

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According to the regulator, any designation referencing the age of a spirit must be anchored to the youngest component within the blend rather than the oldest. Furthermore, the notice criticised references to Scotch on product packaging as insufficiently informative regarding the ingredients' true characteristics. The FSSAI notice stated that Diageo's mention of Scotch is vague and does not inform its true characteristics, adding that the company must specify what Scotch is used.

The maturation warning accompanies separate enforcement actions by the Food Safety and Standards Authority of India. Authorities restricted sales of specific spirits produced in select states by both Diageo and Inbrew due to the utilisation of artificial flavourings instead of traditional ageing and ingredients. The FSSAI announced that it prohibited sales of Diageo's Royal Challenge Whisky made in the state of Madhya Pradesh and some whisky and rum brands made in some Indian states by Diageo and India's Inbrew for using artificial flavouring, such as whisky and rum flavours, rather than proper ageing and ingredients.

The whisky ban covers Diageo's Antiquity Blue Whisky and Royal Challenge made in Madhya Pradesh, as well as Inbrew's Bagpiper Deluxe Whisky and Old Cask Deluxe XXX Rum, produced in the same state. Domestically made Royal Challenge is one of Diageo's top-selling products in India. The whisky's front label says it is a rich blend of Indian grain spirit and imported scotches, matured in American oak casks. Its back label says it contains demineralised water, grain neutral spirit, Scotch, permitted natural colour, and added nature identical whisky flavouring substances.

Local unit United Spirits addressed the stock exchanges regarding the restrictions. The company indicated it anticipated no direct financial impact while continuing to monitor developments closely. Diageo India, the commonly used name for the local unit United Spirits, stated that it remains committed to the highest quality standards.

"actively engaging with FSSAI to address their queries on labelling"

Diageo India, via AOL

The crackdown on the alcohol industry has triggered some legal challenges as the regulator increases its scrutiny of liquor companies, energy drink makers like PepsiCo, and food producers over what it contends are incorrect labelling and weak compliance.

What to Watch Next

• Ongoing discussions between Diageo India and the Food Safety and Standards Authority of India regarding labelling adjustments.
• Potential legal challenges within India's broader alcohol manufacturing sector as oversight intensifies.
• Further guidance from regulators concerning age statements and ingredient disclosure across spirits.