Diageo reformulates Indian whiskies and rum after crackdown

Diageo has reportedly agreed to reformulate some of its biggest-selling whiskies and rums in India following a regulatory crackdown on the use of flavourings in spirits. The changes are expected to apply nationwide to brands including Royal Challenge, Antiquity Blue and McDowell’s No. 1 Celebration Matured XXX Rum.

Diageo has moved to protect sales of its most popular whiskies and rums in India by agreeing to minor reformulations.

Government sources told Reuters this is a reaction to the country’s food safety regulator banning some brands for adding flavours that breached regulations.

Neither Diageo’s India unit, United Spirits, nor the Food Safety and Standards Authority of India have confirmed the report, but Diageo has previously stated that it fully complied with the law.

The sources said Diageo has agreed to the reformulations and to stop adding whisky flavouring to whisky or rum flavours to rum.

Crackdown affects major brands

This is in response to an industry-wide crackdown by the regulator earlier, which banned several Diageo brands and those of some competitors, alleging mislabelling and improper addition of flavours.

It covered Diageo’s high-selling Antiquity Blue and Royal Challenge brands made in Madhya Pradesh and its McDowell’s No. 1 Celebration Matured XXX Rum made in Maharashtra.

The changes now being introduced will be required for these brands made anywhere in India.

Indian-made Royal Challenge is one of Diageo’s top-selling products in India, selling more than 4.5 million nine-litre cases a year.

Labels to disclose flavourings

The government sources said that while Diageo introduces the changes, it will make clear via front labels what flavouring has been added to the spirits.

Separate dispute over recycled bottles

Separately, Indian inspectors have seized around 18,000 boxes of Diageo bottles for allegedly lacking markings to show they were made using safe recycled plastic.

The bottles are produced by a third party for Diageo and present no health hazard. However, they lacked the required stamp to show their compliance with regulations.

Tags: