Diageo India is set to comply with new labelling rules set forth by the Food Safety and Standards Authority of India (FSSAI) regarding whisky and rum products. The company has been given a 90-day timeline to clear its existing stock in Maharashtra. Despite changes to product labels, the composition of the spirits will remain the same, indicating terms like “whisky-flavoured spirit” or “rum-flavoured spirit” on the packaging. This decision comes as part of broader action by the FSSAI against several liquor companies for alleged violations related to flavouring and age declarations.

The FSSAI’s directives have prompted discussions surrounding the impact on the liquor industry, particularly concerning recurring flavouring agents and established manufacturing practices. Executives from Diageo mentioned that they would challenge the regulator’s position in court, emphasizing that their products have consistently met applicable safety and quality standards.

Industry experts have raised concerns regarding the potential disruption to the manufacturing of whisky and rum, highlighted by the FSSAI’s stance which may necessitate a fundamental reformulation of existing products. Presently, the Indian market relies heavily on extra-neutral alcohol (ENA), derived from broken rice, which is less costly than matured spirit, causing concern over how brands will maintain pricing and quality.

The FSSAI’s ruling points towards a more stringent definition of spirits, which should be distilled from specific raw materials like cereals for whisky and sugarcane for rum. This stringent definition poses challenges for brands that have historically relied on additives to achieve desired flavour profiles. The rum and whisky sectors in India, which collectively manage around 432 million cases annually, could face significant operational and economic impacts due to the inability to provide sufficient matured spirits in response to regulatory demands.

The liquor industry appears divided on how to navigate the regulatory landscape, with calls for transitional periods to allow manufacturers to adjust without substantial losses. This development highlights the ongoing tension between maintaining product integrity and adhering to evolving regulations in India’s vast alcohol sector.

For more information, visit the FSSAI website and follow updates on the Ongoing developments regarding the liquor industry.