FSSAI has questioned Diageo’s Royal Challenge whisky labelling, saying a major portion of the spirit was not matured despite the product’s ageing claim
Food Safety and Standards Authority of India (FSSAI) has questioned Diageo’s claim that its Royal Challenge whisky is matured in American oak casks, saying a major portion of the spirit used in the product was not matured, according to a Reuters report.
FSSAI issued the notice to Diageo on July 20, raising concerns over the product’s labelling and composition. The notice adds to the regulator’s scrutiny of the liquor maker following action over the use of artificial flavouring in certain spirits.
On Sunday, the FSSAI said it had prohibited the sale of Diageo’s Royal Challenge Whisky manufactured in Madhya Pradesh, along with certain whisky and rum brands made by Diageo and Inbrew in some Indian states. The regulator cited the use of artificial flavouring substances, including whisky and rum flavours, instead of appropriate ageing and ingredients.
The action comes amid increased regulatory scrutiny of India’s USD 40 billion alcohol industry. The FSSAI has also been examining labelling and compliance practices across the wider food and beverage sector, including energy drink makers and food producers.
FSSAI Flags Maturation Disclosure
In its July 20 notice, the FSSAI said Royal Challenge’s label describes the whisky as “matured in American oak casks”. However, it noted that grain neutral spirit was the second ingredient listed after demineralised water and that a major portion of the product consisted of spirit that had not been matured.
The regulator said the entire alcohol content was not matured in wooden casks in the manner suggested by the label, making the claim potentially misleading to consumers.
According to the report, FSSAI also said that any statement about the age of spirit used in a blend should be based on the youngest spirit in the mixture rather than the oldest.
The notice separately questioned the product’s reference to Scotch, saying the description did not adequately communicate its characteristics. The regulator asked Diageo to specify the type of Scotch used in the product.
Royal Challenge Among Diageo’s Top Sellers
The regulatory action covers Diageo’s Antiquity Blue Whisky and Royal Challenge manufactured in Madhya Pradesh, as well as Inbrew’s Bagpiper Deluxe Whisky and Old Cask Deluxe XXX Rum produced in the state.
United Spirits, Diageo’s listed Indian arm, told stock exchanges this week that it did not expect the ban to have any financial implications. The company said it was monitoring the matter closely.
Royal Challenge is among Diageo’s top-selling whisky brands in India. The company says more than 4.5 million nine-litre cases of the brand are sold annually in the country and describes it as part of the mid-prestige segment.
Alcohol prices vary across Indian states. In Uttar Pradesh, a 375-millilitre bottle of Royal Challenge whisky is priced at Rs 360.
The front label describes Royal Challenge as a blend of Indian grain spirit and imported Scotch, with the product stated to be matured in American oak casks. Its back label lists demineralised water, grain neutral spirit and Scotch, along with permitted natural colour and added nature-identical whisky flavouring substances.
The FSSAI’s action comes as the regulator intensifies scrutiny of product claims, ingredient disclosures and compliance across India’s food and beverage industry.
(With Input from Agency)
