The Food Safety and Standards Authority of India (FSSAI) has impounded approximately 18,000 cases of Diageo whisky and vodka over safety concerns.
India is currently the world’s largest whisky market by volume
FSSAI inspectors seized stocks of Diageo products, alleging that the packaging lacked markings indicating it was made of safe recycled plastic.
The action focused on 180ml ‘quarter’ bottles of Smirnoff Zesty Lime Triple Distilled Flavoured Vodka, DSP Black Deluxe Whisky and VAT 69 Scotch whisky.
Diageo’s Indian subsidiary, United Spirits, told Reuters in a statement: “Our products are completely safe for consumption. We are engaging with FSSAI for further direction on this matter.”
The company has declined a request for further comment on the matter.
This intervention is the second such blow to United Spirits in as many weeks, following the FSSAI’s decision to ban sales of several brands owned by the spirits giant.
Brands including Royal Challenge Whisky and McDowell’s No.1 Rum were withdrawn from sale after laboratory reports identified the possible use of unauthorised flavourings and ‘misleading’ age-related claims.
United Spirits has since challenged the ban, citing a lack of due process in the investigation.
In the three months ending 30 June 2026, the company reported a profit after tax of INR 391 crore (US$40.5 million), reflecting an increase of 51.6% on the previous year.
McDowell’s Whisky, which is owned by United Spirits, took the number two spot in The Indian Whisky Brand Champions this year after selling 31.9m nine-litre cases in 2025.
United Spirits isn’t the only drinks company experiencing difficulties in India.
Pernod Ricard is currently facing a bill for US$314m in back taxes after the Indian government alleged the firm had misrepresented the age and composition of whiskies entering the country to reduce outgoings from import tariffs.
The government crackdown on spirits producers is unlikely to deter them from seeking to expand their footprint in one of the world’s fastest-growing economies. IWSR predicts India will continue to grow over the next decade, with spirits, wine and beer expected to record CAGR growth of between 3% and 4%.
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