Diageo India has approached the Bombay High Court challenging an order issued by the Food Safety and Standards Authority of India (FSSAI) that prohibits the sale of McDowell’s No. 1 Rum manufactured at the company’s Baramati facility in Maharashtra.
The writ petition was filed on August 1, 2026, challenging FSSAI’s order dated June 29, 2026, which was issued under the Food Safety and Standards Act, 2006.
Why Did FSSAI Take Action?
FSSAI recently initiated enforcement action against several alcoholic beverage manufacturers after laboratory testing allegedly found non-compliance with the Food Safety and Standards (Alcoholic Beverages) Regulations.
According to the regulator, some manufacturers were using external artificial or nature-identical flavours in products primarily made from neutral spirit while marketing them as standard rum or whisky.
FSSAI stated that such products should instead be labelled as:
- Rum-flavoured Spirit
- Whisky-flavoured Spirit
The regulator said incorrect product descriptions could potentially mislead consumers regarding the nature of the alcoholic beverage.
Diageo India’s Response
Diageo India has disputed FSSAI’s findings and maintains that its product labels fully comply with the applicable legal and regulatory framework in India.
In its stock exchange filing, the company stated that its position is based on legal advice and that the declarations on the labels are consistent with long-standing industry practices.
Since the matter is now before the Bombay High Court, Diageo has declined to comment further on the case.
The company also noted that industry bodies, including the Confederation of Indian Alcoholic Beverage Companies (CIABC) and the International Spirits & Wines Association of India (ISWAI), are engaging with FSSAI as the issue affects multiple manufacturers across the industry.
Products Covered Under FSSAI’s Prohibition Order
The prohibition order includes several alcoholic beverage brands, including:
- McDowell’s No. 1 Rum
- McDowell’s No. 1 Celebration Matured XXX Rum
- Royal Challenge Whisky
- Antiquity Blue Whisky
- Bagpiper Deluxe Whisky
- Old Monk The Legend
- Old Monk Gold Reserve
- Old Monk XXX Matured Rum
- Old Cask Deluxe XXX Rum
- Central Province Whisky
In addition, FSSAI has issued notices to six other manufacturers in Maharashtra, with further regulatory action expected after ongoing investigations are completed.
Operational Impact
Diageo India has stated that the FSSAI order currently has no material operational or financial impact on the company. However, it is closely monitoring the legal proceedings and the regulatory developments.
Why This Case Matters
The case is likely to have significant implications for India’s alcoholic beverage industry, particularly regarding food labelling compliance, product classification, flavour declarations, and regulatory enforcement. The Bombay High Court’s decision could influence future labelling practices across the sector and provide greater clarity on the interpretation of FSSAI’s Alcoholic Beverages Regulations.
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