The Food Safety and Standards Authority of India (FSSAI) issued a confidential notice on 20 July to Diageo, the parent company of United Spirits, alleging misleading claims on its whisky label.
FSSAI said the label for Royal Challenge Whisky states that the spirit is “matured in American oak casks”, but most of the product is not matured and contains a large portion of grain neutral spirit.
In addition to the labeling issue, the regulator banned the sale of several Diageo and Inbrew brands that used artificial flavourings instead of proper ageing. The ban covers Royal Challenge and Antiquity Blue Whisky, and Inbrew’s Bagpiper Deluxe Whisky and Old Cask Deluxe XXX Rum.
Diageo India, the local name for United Spirits, said it remains committed to the highest quality standards and is actively working with FSSAI to address the labeling concerns.
The company also told stock exchanges that the ban is unlikely to affect its finances, but it is closely monitoring the situation.
Royal Challenge is one of Diageo’s best‑selling products in India, with more than 4.5 million nine‑litre cases sold each year. The brand is marketed as a mid‑prestige price segment whisky.
In Uttar Pradesh, a 375‑ml bottle of Royal Challenge sells for about 360 rupees (US$3.80). The front label reads “A rich blend of Indian grain spirit & imported scotches, matured in American oak casks.”
The back label lists ingredients such as demineralised water, grain neutral spirit, Scotch, and added natural flavouring substances. FSSAI pointed out that the use of “Scotch” is vague and does not inform consumers about the true characteristics of the spirit.
The regulator’s notice also states that any claim about the age of a spirit must refer to the youngest spirit used in the mix, not the oldest.
This action is part of a broader crackdown on India’s $40‑billion alcohol industry, which has prompted several legal challenges. FSSAI is increasing scrutiny over liquor companies, energy drink makers like PepsiCo, and food producers for incorrect labeling and weak compliance.
Diageo remains engaged with FSSAI and is monitoring the situation closely, while the ban covers products made in Madhya Pradesh and other states where the company operates.
The case highlights the importance of accurate labeling and compliance with food safety standards in India’s growing alcoholic beverage market.