2 weeks ago
Diageo to reformulate India whisky, rum after flavouring ban
A big drinks company called Diageo makes whisky and rum in India.
The Indian food safety regulator, FSSAI, checks that food and drinks are safe and honestly labelled.
It found that some Diageo drinks had flavours added that were not allowed.
The regulator banned some of these drinks in certain parts of India.
Diageo has now agreed to change how it makes the drinks.
It will stop adding whisky flavour to whisky and rum flavour to rum.
While it changes the recipe, it will put clear labels on the bottles.
The government says it will lift the ban because of this promise.
Some of the drinks are very popular, like Royal Challenge whisky.
The company sells over 4.5 million cases of Royal Challenge every year.
Diageo agreed to reformulate Royal Challenge, Antiquity Blue whisky and McDowell's No. 1 Celebration Matured XXX Rum after FSSAI banned them in some states over added flavours.
The regulator will drop its ban on the understanding that Diageo stops adding whisky flavour to whisky and rum flavour to rum, two government sources said.
The changes will apply to the brands made anywhere in India, not only restricted states, with front-of-pack labels disclosing flavourings during the transition.
Royal Challenge, one of Diageo's top-selling products in India, sells over 4.5 million nine-litre cases a year.
Separately, inspectors seized around 18,000 boxes of Diageo liquor bottles over missing recycled-plastic safety markings, and FSSAI questioned Royal Challenge's 'matured in American oak casks' claim.
United Spirits had earlier challenged the ban in court, arguing it was imposed without adequate due process and that its products complied with the law.
- Who
- Diageo and its India unit United Spirits, along with the Food Safety and Standards Authority of India (FSSAI).
- What
- Diageo agreed to reformulate popular whisky and rum brands to remove added flavourings, and the regulator will drop its ban.
- Where
- India; the banned brands were made in Madhya Pradesh and Maharashtra.
- When
- The ban was imposed early this month; the agreement was reported on Monday.
- Why
- The regulator alleged mislabelling and improper addition of flavours, such as rum flavour in rum.
Regulator's position
Diageo's position
Flavouring compliance
Regulator's position
FSSAI alleged mislabelling and improper addition of flavours, such as rum flavour in rum, and banned the brands in some states.
Diageo's position
Diageo said it complies with the law and agreed to reformulate the drinks while adding clearer front-of-pack labels.
Ban and due process
Regulator's position
FSSAI restricted sales over alleged flavouring and labelling violations in one of India's biggest food safety crackdowns in years.
Diageo's position
United Spirits challenged the ban in court, arguing it was imposed without adequate due process and prematurely while consultations were ongoing.
Label claims
Regulator's position
FSSAI warned that Royal Challenge's claim of being 'matured in American oak casks' could be misleading, as most of the spirit was not matured.
Diageo's position
Royal Challenge's label describes it as a rich blend of Indian grain spirit and imported scotches matured in American oak casks.
Key facts
- Company
- Diageo
- India unit
- United Spirits
- Regulator
- Food Safety and Standards Authority of India (FSSAI)
- Banned brands
- Antiquity Blue, Royal Challenge, McDowell's No. 1 Celebration Matured XXX Rum
- Royal Challenge annual sales
- Over 4.5 million nine-litre cases
- Indian spirits industry size
- $40 billion
- Seized liquor boxes
- Around 18,000
- Reformulation timeline
- Expected to be implemented within three months
Quotes
Two Indian government sources
Unnamed officials from the Indian Food Safety and Standards Authority
“Diageo has agreed to reformulate its drinks to stop adding whisky flavour in whisky or rum flavour in rum”
CNBC TV 18
Sources
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