Diageo Challenges India Ban and Faces Product Seizures

The Food Safety and Standards Authority of India (FSSAI) has launched a regulatory crackdown on Diageo, resulting in both product seizures and sales prohibitions. Indian authorities seized approximately 18,000 cases of Diageo products, valued at US$1.6 million, because 180ml bottles of brands such as VAT 69, Smirnoff Zesty Lime, and DSP Black Deluxe lacked required food-grade markings for recycled plastic.

Simultaneously, the FSSAI banned the sale of several whisky and rum brands, including McDowell's No. 1 Celebration Matured XXX Rum, alleging the use of artificial flavors and misleading maturity declarations. The regulator asserts that rum flavor must be characteristic of natural ingredients and maturation techniques rather than artificial additives.

In response, Diageo filed a legal challenge in Mumbai's High Court, arguing the prohibition order was premature and commercially prejudicial. The company noted that the FSSAI began consulting the industry on labeling rules only after the ban was issued. While a judge denied immediate relief during a Monday hearing, the federal government must respond by August 19. Diageo and its subsidiary, United Spirits, maintain that all products are safe for consumption and that the recycled bottles were sourced from FSSAI-approved recyclers.