DIAGEO India is facing heightened regulatory scrutiny after food safety authorities seized around 18,000 boxes of liquor bottles from a United Spirits facility in Bengaluru over alleged non-compliance with mandatory recycled-PET markings. The action comes amid separate regulatory proceedings concerning flavouring and labelling of alcoholic beverages.

18,000 Boxes Seized in Bengaluru

The latest action followed an inspection by the Food Safety and Standards Authority of India (FSSAI) at a United Spirits facility in Bengaluru. According to government documents reviewed by Reuters, inspectors found that certain liquor bottles made using recycled polyethylene terephthalate (PET) did not carry the government-mandated recycled-PET symbol indicating that the material was suitable for food contact.

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The action involved approximately 18,000 boxes of liquor bottles, with the seized products and plastic material valued at around US$1.6 million, according to the government documents. The affected portfolio included DSP Black Deluxe Whisky, Smirnoff Zesty Lime Triple Distilled Flavoured Vodka and VAT 69 Blended Scotch Whisky, among more than half a dozen brands. The action focused on smaller plastic bottles, typically around 180 ml.

The government memo said the missing markings raised food-safety, misleading and misbranding compliance concerns. However, the regulatory action concerns the packaging and its required markings; DIAGEO has maintained that its products are safe for consumption.

DIAGEO Responds to the Action

United Spirits, DIAGEO’s India unit, confirmed that regulatory action had been taken. The company said the affected bottles were sourced from a recycler approved by FSSAI and that mandatory tests had been conducted by suppliers.

DIAGEO India said some of the bottles had been quarantined by authorities pending further direction. The company has maintained that its products are safe for consumption and said it is engaging with FSSAI on the matter.

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The Bengaluru action is therefore centred on compliance with packaging and recycled-PET marking requirements, with DIAGEO disputing any implication that the products themselves are unsafe.

Separate Scrutiny Over Flavouring

The Bengaluru seizure is separate from FSSAI’s recent action concerning artificial or “nature-identical” flavouring substances in certain alcoholic beverages.

Earlier in August, FSSAI barred the sale of specified products made by United Spirits and Inbrew Beverages, alleging the use of flavouring corresponding to the alcoholic beverage itself. The action included Antiquity Blue Whisky and Royal Challenge Whisky made in Madhya Pradesh, as well as McDowell’s No. 1 Rum made in Maharashtra. 

United Spirits has disputed the regulatory interpretation, stating that the product labels in question comply with applicable laws and regulations. The company has also challenged the prohibition concerning McDowell’s No. 1 Celebration Matured XXX Rum in the Mumbai High Court, arguing that the order was issued without due process. The court has sought a response from the central government. 

Royal Challenge Label Under Review

Separately, an FSSAI notice dated July 20 questioned the “matured in American oak casks” claim on Royal Challenge Whisky.

According to the notice reviewed by Reuters, FSSAI alleged that the product contained a major portion of non-matured spirit and argued that the maturation claim could mislead consumers. The regulator also questioned the product’s reference to “Scotch” without specifying its characteristics. DIAGEO has said it remains committed to quality standards and is engaging with FSSAI on the labelling concerns. 

These concerns remain regulatory allegations and notices rather than final judicial findings.

What It Means for the Spirits Industry

The developments highlight the increasingly detailed compliance environment facing India’s alcoholic beverage industry. Regulatory scrutiny is extending beyond the liquid itself to packaging materials, recycled-PET markings, flavouring practices and consumer-facing claims.

For DIAGEO, the Bengaluru seizure represents the latest physical enforcement action, while the separate flavouring and labelling proceedings could have broader implications for how alcoholic beverages are formulated, packaged and marketed in India.

For the wider spirits sector, the cases underscore the importance of end-to-end compliance, spanning packaging suppliers, manufacturing facilities, product formulation, labelling and consumer-facing claims.