Diageo faces regulatory bans and seizures in India

Diageo and its Indian unit, United Spirits, are facing significant regulatory challenges in India following a series of enforcement actions by the Food Safety and Standards Authority of India (FSSAI).

United Spirits is contesting a ban on its McDowell’s No. 1 Celebration Matured XXX Rum in Maharashtra, arguing that the prohibition lacked due process, transparency, and proper legal notice. The company described the order as “premature, prejudicial.” This follows a broader FSSAI crackdown on liquor products, including brands like Old Monk and Bagpiper, which regulators claim used artificial flavorings to mimic the taste of aged spirits.

In a separate development, Indian food safety inspectors seized approximately 18,000 boxes of Diageo liquor bottles. The seizure, which includes brands such as Smirnoff, reportedly stems from concerns that the bottles lacked required markings indicating they were made from safe recycled plastic. Government officials stated the action was taken to address potential food safety, misleading, and misbranding compliance concerns regarding the finished beverages.