India's food safety regulator has warned liquor major Diageo that a claim describing its popular Royal Challenge whisky as "matured in American oak casks" could mislead consumers because most of the product has not undergone maturation, Reuters reported on Saturday. The Food Safety and Standards Authority of India (FSSAI) raised the issue in a confidential notice dated July 20 that was reviewed by Reuters. The previously unreported notice represents another regulatory challenge for the company after authorities recently acted against certain spirits over the use of artificial flavourings. Royal Challenge is one of Diageo's biggest-selling whisky brands in India, with annual sales exceeding 4.5 million nine-litre cases, according to Reuters.
The regulator's concerns centre on Royal Challenge's label, which says the whisky is "matured in American oak casks". According to Reuters, FSSAI said most of the product comprises grain neutral spirit that has not been matured. The regulator's position is that when a blended spirit carries a maturation or ageing declaration, that claim should correspond to the youngest spirit used in the blend. That would mean a maturation claim covering the overall product could be considered misleading if a significant component of the blend has not undergone the ageing process described on the label.
The regulator also questioned the manner in which the term "Scotch" was used on the product, saying there was insufficient clarity regarding its origin, Reuters reported. The issue is significant because descriptions relating to ageing, maturation and the type of cask used can influence how consumers perceive the quality and characteristics of whisky. Diageo India told Reuters that it remained committed to complying with regulations and was cooperating with the authorities. The company does not expect the regulatory actions to have a financial impact, according to the report.
The warning comes amid heightened scrutiny of India's roughly $40-billion alcoholic beverages market. FSSAI recently took action against certain products manufactured by Diageo's Indian unit, United Spirits, and Inbrew Beverages over the use of artificial or "nature identical" flavouring substances. The affected brands included Royal Challenge Whisky, Antiquity Blue Whisky, Bagpiper Deluxe Whisky and McDowell's No. 1 Rum, as well as some Old Monk variants manufactured by Inbrew.
According to Reuters, the regulator objected to the use of additives intended to replicate flavours and aromas normally associated with properly aged spirits. FSSAI argued that such practices were inconsistent with recognised manufacturing standards and could result in products being classified as "sub-standard". Diageo has challenged aspects of the regulatory action in court, maintaining that its product labels comply with existing regulations and arguing that some of the issues raised have implications for the wider liquor industry.
The latest notice broadens the regulatory dispute beyond ingredients and flavouring practices to the way whisky is described and marketed to consumers. For Royal Challenge, the scrutiny is particularly significant given its scale in the Indian market. FSSAI's objection indicates that regulators are increasingly examining whether claims concerning maturation and production methods accurately represent the composition of the final product.