New Delhi, India – The Food Safety and Standards Authority of India (FSSAI) has seized approximately 18,000 cases of Diageo whisky and vodka due to safety concerns. This action follows allegations that the packaging lacked proper markings indicating it was made from safe recycled plastic.
FSSAI inspectors specifically targeted 180ml ‘quarter’ bottles of Smirnoff Zesty Lime Triple Distilled Flavoured Vodka, DSP Black Deluxe Whisky, and VAT 69 Scotch whisky.
In response to the seizures, Diageo’s Indian subsidiary, United Spirits, released a statement to Reuters, asserting, “Our products are completely safe for consumption. We are engaging with FSSAI for further direction on this matter.” The company has since declined to provide additional comments.
This incident marks the second significant challenge for United Spirits in recent weeks. Previously, the FSSAI banned the sale of several brands owned by the spirits giant, including Royal Challenge Whisky and McDowell’s No.1 Rum. Laboratory reports had indicated the potential use of unauthorized flavorings and “misleading” age-related claims for these products. United Spirits has since contested the ban, citing a lack of due process in the investigation.
Despite these regulatory setbacks, United Spirits reported a strong financial performance for the three months ending June 30, 2026, with a profit after tax of INR 391 crore (US$40.5 million), representing a 51.6% increase compared to the previous year. McDowell’s Whisky, a United Spirits brand, was recognized as the second-largest selling Indian whisky brand this year, having sold 31.9 million nine-liter cases in 2025.
United Spirits is not alone in facing regulatory scrutiny in India. Pernod Ricard is currently grappling with a US$314 million tax bill after the Indian government accused the company of misrepresenting the age and composition of imported whiskies to lower import tariffs.
Despite the government crackdown on spirits producers, industry experts predict continued growth in India. IWSR forecasts that India’s spirits, wine, and beer markets will experience a Compound Annual Growth Rate (CAGR) of between 3% and 4% over the next decade, as producers aim to expand their presence in one of the world’s fastest-growing economies. India is currently the world’s largest whisky market by volume.
