New Delhi: Diageo has accepted a tweak in the formulas of some of its popular whisky and rum brands in India after the country’s Food Safety Commissioner raised concerns over the addition of flavouring substances in the drinks. The move follows the Food Safety and Standards Authority of India (FSSAI) banning the sale of some of its products in some States.
The impacted products are Antiquity Blue and Royal Challenge whisky from Madhya Pradesh and McDowell’s No. 1 Celebration Matured XXX Rum from Maharashtra. In a reformulation process, Diageo has agreed to strip whisky of whisky and rum of rum flavouring, government sources told Reuters.
The conflict stems from the ingredients and labels applied to some locally-created spirits that came into question by the food safety authorities. Some manufacturers were recommending flavours that had the same kind of drink, for example rum flavour to rum, the regulator said. FSSAI also granted a passage of some natural flavoring substances in alcoholic beverages, but the products it has checked did not comply with the rules, FSSAI said.
India’s business, United Spirits, a Diageo division, had previously stated that it complies with the law. The company also had objected to the prohibition of McDowell’s No. 1 Celebration Matured XXX Rum, claiming it was made without due process. The issue is now being considered by the Bombay High Court.
The changes in the latest understanding will not just be for products produced in states that had restrictions. Government sources say the reformulation will be applicable to the impacted brands produced all over India. This implies that this company will have to make more than just the changes in their production process.
Additionally, Diageo will also be giving consumers better information on product labels during the transition. The company has stated it will make any added flavouring evident on the front of the pack until the new versions of the drinks are available. The decision is believed to provide consumers with more information on the content of the products they purchase.
One of the biggest whisky brands in India by Diageo is ‘Royal Challenge’. It has played an important role in the Indian market, with over 4.5 million 9-litre boxes of the brand being sold annually, the company says.
The move is part of broadened regulatory oversight of the liquor business. Indian officials have also confiscated approximately 18,000 bottles of Diageo alcoholic beverages along with the bottles’ labels depicting safe recycled plastic use, for other reasons.
The reformulation deal could make a dent in the existing restrictions, and with it, a greater focus on ingredients and labelling in India’s large spirits market.
