Diageo to reformulate Antiquity Blue, Royal Challenge and McDowell’s No. 1 rum after FSSAI action

NEW DELHI: Diageo is giving some of its best-selling Indian spirits a new flavour of compliance. The global drinks company has agreed to reformulate several whisky and rum products after India’s food safety regulator objected to the use of added flavouring, according to a Reuters report citing two government sources. The move could pave the way for the regulator to withdraw restrictions imposed on the affected products in some states.

The products in question include Antiquity Blue and Royal Challenge whisky manufactured in Madhya Pradesh, along with McDowell’s No. 1 Celebration Matured XXX Rum manufactured in Maharashtra.

Importantly, the changes will apply to the products made across India, rather than only to batches sold in states where restrictions were imposed. Diageo has agreed to remove added whisky flavour from whisky and rum flavour from rum as part of the reformulation.

Until the new formulations are in place, the company has also agreed to make the presence of added flavouring clearer on the front of product packaging, Reuters reported. The reformulation is expected to take place within three months.

The dispute stems from a broader regulatory push by the Food Safety and Standards Authority of India (FSSAI) over the use of flavouring substances in alcoholic beverages. The regulator has objected to products where added flavours were used to recreate the characteristic taste and aroma associated with standard spirits, alongside concerns over labelling and how such products are presented to consumers.

The action has put several major liquor makers under pressure. United Spirits, Diageo’s Indian arm, has challenged some of the regulatory orders, while Mohan Meakin, the maker of Old Monk, has also moved court. The Bombay High Court is examining challenges from liquor manufacturers.

Diageo’s latest agreement marks a shift from courtroom resistance towards a compliance-led solution for the affected products. The regulator’s restrictions could be withdrawn if the agreed changes are implemented, according to the Reuters report.

The flavouring dispute is not the only regulatory headache facing Diageo in India. Authorities recently seized around 18,000 boxes of the company’s liquor bottles over alleged non-compliance with markings indicating the use of safe recycled plastic. Diageo’s Indian business has said the products are safe for consumption and is engaging with authorities on the matter.

The action against spirits companies forms part of a wider FSSAI enforcement drive covering misleading claims, labelling, formulations and packaging across the food and beverage industry.

In separate cases, six food companies have withdrawn or modified claims, changed trademarks, revised packaging or delisted products after receiving notices from the regulator. Livyor Ventures removed “vegan” and “healthy” claims from its Livyor Roasted Edamame Beans packaging, while Honest Innovations For You and Heliostone Specialities changed trademarks flagged as potentially misleading.

Rajasthan Agro and General Industries removed disputed claims and promotional material. Iota Nanotechnology removed misleading claims and stopped production of non-standardised water, while Panchamurtha Industries delisted an electrolyte drink from its website.

FSSAI has also tightened rules around pan masala packaging. Regulations notified on August 7 prohibit plastic, aluminium foil and metallised layers in specified packaging formats, while paper, paperboard, cellulose, tin and glass remain permitted under the applicable rules.

The regulator has separately issued notices to brands including Emami Healthy & Tasty, Neuherbs, Troovy and Plan B over product names, branding and health claims, including the use of terms such as “plant-based” and “vegan”.

Dabur India has also faced scrutiny over “100 per cent” claims on products including honey, apple cider vinegar, coconut milk, sesame oil and ghee. FSSAI has argued that such claims must be objectively substantiated and should not give consumers a misleading impression.

The regulator has further stepped up checks on nutraceuticals and health supplements, while beverage companies have been asked to remove the word “energy” from packaging following changes to the applicable classification.

For Diageo, however, the immediate task is more specific: change the recipe, sharpen the label and get its affected bottles back on firmer regulatory footing. In India’s increasingly watchful spirits market, the message from the regulator is clear: what is in the bottle and what is on the bottle now need to match more closely.