India Bars Sale of Some Diageo and Inbrew Liquor Brands Over Artificial Flavouring Concerns
India’s food safety regulator has restricted the sale of several popular whisky and rum brands produced by Diageo’s Indian unit and Inbrew Beverages after tests found the presence of external artificial or nature-identical flavouring substances in the products. The Food Safety and Standards Authority of India (FSSAI) said the products did not meet required standards because flavours were being added to replicate characteristics that should come from natural ingredients or ageing processes.
FSSAI Raises Concerns Over Flavouring Practices in Alcoholic Drinks
The Food Safety and Standards Authority of India (FSSAI) said it allows the use of natural flavouring substances in alcoholic beverages but raised concerns over the addition of flavours that imitate the characteristics of the same alcoholic product.
According to the regulator, tests found that some manufacturing facilities were adding flavours such as rum flavour to rum and whisky flavour to whisky.
“There is no internationally recognized manufacturing practice whereby rum flavour is added to rum or whisky flavour is added to whisky,” the FSSAI said in a statement.
The regulator said such practices could allow companies to bypass traditional production methods, including maturation and the use of natural ingredients such as molasses, malt and grapes.
Diageo Brands Included in FSSAI Action
The FSSAI has ordered restrictions on sales of certain products manufactured by Diageo’s Indian subsidiary United Spirits. The affected brands include:
- Antiquity Blue Whisky produced in Madhya Pradesh
- Royal Challenge Whisky produced in Madhya Pradesh
- McDowell’s No. 1 Rum produced in Maharashtra
United Spirits said in a stock exchange filing that it was addressing the matter with the FSSAI. The company said the concern was related to an industry-wide issue and stated that the product labels involved complied with existing laws and regulations.
The company has also filed a legal challenge against the FSSAI order concerning its rum product. A source familiar with the matter said Diageo may separately challenge directions related to its whisky products.
Inbrew and Old Monk Products Also Face Restrictions
The FSSAI order also covers products from Inbrew Beverages and Mohan Rocky Springwater.
- Bagpiper Deluxe Whisky by Inbrew
- Old Cask Deluxe XXX Rum by Inbrew
- Three variants of Old Monk rum produced by Mohan Rocky Springwater in Maharashtra
Inbrew’s affected products were produced in Madhya Pradesh. The companies involved did not immediately respond to requests for comments.
Industry Executives Question Regulatory Order
Two senior industry executives said companies were concerned about the regulator’s action and believed the use of flavours was permitted under Indian regulations. They declined to be named because the matter remains sensitive.
The extent of the restriction across different manufacturing locations remains unclear. It is not confirmed whether the order applies only to selected factories or all production units making the same brands.
India’s Alcohol Market Under Greater Regulatory Watch
India is among the world’s largest alcohol markets, with annual sales estimated at around $40 billion. Diageo holds the largest market share among alcohol companies in India, competing with brands from companies such as Pernod Ricard.
The locally manufactured spirits affected by the order are generally more affordable compared with imported whisky and rum products.
Royal Challenge Whisky is one of Diageo’s major products in India. The company describes it as a blend of scotch, Indian malts and grain spirits. Diageo says more than 4.5 million nine-litre cases of Royal Challenge are sold annually in India.
FSSAI Continues Regulatory Action in Food and Beverage Sector
The latest move comes as FSSAI increases scrutiny of products across the food and beverage industry.
The regulator recently directed manufacturers of high-caffeine beverages marketed as “energy drinks” to stop using that description, as part of broader regulatory action.
FSSAI said the products examined in the liquor case were classified as “sub-standard” due to the presence of external artificial or nature-identical flavours.
What Happens Next
Diageo’s India unit is in discussions with the FSSAI and has challenged the order related to its rum product in court. Further action will depend on regulatory proceedings and legal developments.
The case may also impact discussions around flavouring practices, ageing processes and product labelling standards in India’s alcoholic beverage industry.
