FSSAI warned Diageo over Royal Challenge's 'American oak' maturation claim

A confidential government notice reveals what India's food safety regulator found misleading about Diageo's Royal Challenge whisky label, as the company faces wider scrutiny over its spirits.Bottles of Royal Challenge and Antiquity Blue whisky are displayed at a liqor shop. (REUTERS/Francis Mascarenhas/File Photo Purchase Licensing Rights)India warned liquor giant Diageo that its claim that one of its top-selling whiskies was “matured in American oak casks” was misleading, saying most of the spirit in the product had not been matured.A confidential July 20 notice from the Food Safety and Standards Authority of India (FSSAI), reviewed by Reuters, said Diageo’s Royal Challenge Whisky contains grain neutral spirit as its second ingredient after demineralised water, while the “major portion is non-matured spirit”.“The complete alcohol is not matured in wood cask as claimed on the label, and therefore misleading the consumer,” the regulator said.The FSSAI also told Diageo that any claim about the age of spirit used in a blend must refer to the youngest spirit used, rather than the oldest. The notice, which had not previously been reported, adds to the regulatory pressure facing Diageo in India, where the FSSAI has also moved against several whisky and rum brands over the use of artificial flavouring.WHAT DIAGEO’S LABEL SAYSRoyal Challenge is one of Diageo’s top-selling products in India. The company says more than 4.5 million nine-litre cases of the whisky are sold in the country every year, describing it as a product in the “mid prestige price segment”. The front label of the whisky says:“A rich blend of Indian grain spirit & imported scotches, matured in American oak casks.”The FSSAI, however, questioned the accuracy of the maturation claim, pointing to the presence of grain neutral spirit and saying a major portion of it was not matured.The regulator said the product could therefore give consumers a misleading impression about the maturation of the alcohol in the bottle.The back label lists “demineralised water, grain neutral spirit, Scotch”, along with permitted natural colour and added nature-identical whisky flavouring substances.The FSSAI also questioned the reference to “Scotch”, saying it was vague and “does not inform its true characteristics”. It told Diageo that the label must mention what Scotch is used.FSSAI WIDENS LIQUOR CRACKDOWNThe warning over Royal Challenge comes as India's food safety regulator increases scrutiny of the country's $40 billion alcohol industry.On Sunday, the FSSAI prohibited the sale of Diageo's Royal Challenge Whisky made in Madhya Pradesh, along with Antiquity Blue Whisky and two products made by Indian liquor company Inbrew in the state — Bagpiper Deluxe Whisky and Old Cask Deluxe XXX Rum.The regulator's action relates to the use of artificial flavouring, including whisky and rum flavours, rather than proper ageing and ingredients.The industry says it complies with the law.The FSSAI's wider crackdown has also extended to energy drink makers such as PepsiCo and food producers over what the regulator considers incorrect labelling and weak compliance.The action against liquor companies has triggered some legal challenges.DIAGEO RESPONDSDiageo India, the commonly used name for the local unit of United Spirits, said it remains committed to the highest quality standards.The company told Reuters on Saturday that it was “actively engaging with FSSAI to address their queries on labelling”.The FSSAI did not respond to Reuters queries about its assertions concerning the maturation of the whisky.United Spirits told stock exchanges this week that it anticipated no financial implications from the ban but was closely monitoring the matter.ROYAL CHALLENGE SALES IN INDIARoyal Challenge is sold across India, where alcohol prices vary from state to state.In Uttar Pradesh, a 375-millilitre bottle of the whisky costs Rs 360, or around $3.80.The FSSAI notice puts a fresh focus on how blended spirits are labelled, particularly claims concerning maturation, the age of spirits used and the ingredients in the final product.For Diageo, the warning comes alongside a broader regulatory challenge over the way spirits are made, flavoured and described to consumers in one of the world's largest alcohol markets.- EndsPublished By: Sonali VermaPublished On: Aug 8, 2026 16:50 IST