3 weeks ago
India regulator warns Diageo whisky oak cask claim misleading
Whisky is a strong drink that is supposed to be kept in wooden barrels so it gets its taste and colour, which is called maturing.
A big drinks company called Diageo wrote on some of its whisky bottles that the drink was 'matured in American oak casks'.
A government group in India called FSSAI checked the bottles and said that claim was not really true.
The group said most of the whisky was a plain spirit that was never matured in wooden barrels at all.
The government group also said the companies used added flavours instead of letting the drinks age properly.
Because of this, India said some of these drinks cannot be sold anymore.
The banned drinks include Royal Challenge and Antiquity Blue whisky, plus a rum and whisky made by another company called Inbrew.
Diageo says it follows the highest quality standards and is talking to the government about the labels.
The government thinks the labels can mislead people who buy the drinks, and the checks are part of a big review of India's alcohol business.
FSSAI's July 20 notice told Diageo its 'matured in American oak casks' claim was misleading because most of the whisky is non-matured spirit.
FSSAI banned sales of Diageo's Royal Challenge and Antiquity Blue whisky and Inbrew's Bagpiper Deluxe Whisky and Old Cask Deluxe XXX Rum, all made in Madhya Pradesh, for using artificial flavouring.
The regulator said the 'Scotch' mention on the label is vague and that any age claim must refer to the youngest spirit in the mix, not the oldest.
United Spirits says it remains committed to quality, is actively engaging with FSSAI on labelling, and anticipates no financial implications from the ban.
The crackdown on India's $40 billion alcohol industry has triggered some legal challenges as FSSAI increases scrutiny of labelling and compliance.
- Who
- India's Food Safety and Standards Authority of India (FSSAI) and liquor giant Diageo, through its Indian unit United Spirits, along with drinks maker Inbrew.
- What
- FSSAI warned Diageo that its 'matured in American oak casks' whisky label claim was misleading and banned some Diageo and Inbrew spirits for using artificial flavouring instead of proper ageing.
- Where
- India, covering spirits produced in the state of Madhya Pradesh.
- When
- The FSSAI notice was dated July 20; the sales ban was announced on Sunday and reported on Aug 8.
- Why
- The regulator says labels mislead consumers because a major portion of the liquor is non-matured spirit flavoured with additives rather than properly aged whisky.
Regulator (FSSAI)
Diageo and the industry
Matured in American oak casks claim
Regulator (FSSAI)
The label claim is misleading because grain neutral spirit is the second ingredient after demineralized water, the major portion is non-matured spirit, and age claims must refer to the youngest spirit used, not the oldest.
Diageo and the industry
Diageo India says it remains committed to the highest quality standards and is actively engaging with FSSAI to address queries on labelling; the industry says it complies with the law.
Artificial flavouring instead of ageing
Regulator (FSSAI)
Some Diageo and Inbrew spirits were banned for using artificial flavouring, such as whisky and rum flavours, rather than proper ageing and ingredients.
Diageo and the industry
The products' labels disclose permitted natural colour and added nature identical (whisky) flavouring substances, and the industry maintains its products comply with the law.
Impact of the crackdown
Regulator (FSSAI)
FSSAI is increasing scrutiny of liquor companies, energy drink makers like PepsiCo and food producers over what it contends are incorrect labelling and weak compliance, and the crackdown has triggered some legal challenges.
Diageo and the industry
United Spirits told stock exchanges it anticipates no financial implications from the ban but is closely monitoring the matter.
Key facts
- Regulator
- Food Safety and Standards Authority of India (FSSAI)
- Notice date
- July 20
- Banned products
- Royal Challenge Whisky and Antiquity Blue Whisky (Diageo); Bagpiper Deluxe Whisky and Old Cask Deluxe XXX Rum (Inbrew)
- Production state
- Madhya Pradesh
- Industry size
- India's $40 billion alcohol industry
- Royal Challenge sales
- Over 4.5 million nine-litre cases sold annually in India
- Retail price (Uttar Pradesh)
- 360 Indian rupees ($3.80) per 375ml bottle
- Company response
- United Spirits anticipates no financial implications; actively engaging with FSSAI on labelling
Quotes
United Spirits (Diageo India)
Local unit of Diageo operating in India
“United Spirits told Reuters that it remains committed to the highest quality standards and was 'actively engaging with FSSAI to address their queries on labelling'.”
livemint.com
“Your product has a grain neutral spirit as second ingredient after demineralised water, and major portion is non-matured spirit.”
livemint.com








