* Indian regulator concerned about flavours added to some
rum, whiskies
* Industry sources say companies concerned about regulator’s
order
* India is among the world’s biggest alcohol markets
NEW DELHI, Aug 3 (Reuters) – India’s food safety regulator
has barred the sale of some popular whiskies and rum made by
Diageo‘s India unit and India’s Inbrew Beverages for using
artificial flavouring instead of proper ageing and ingredients
to achieve their taste and aroma.
India is one of the world’s biggest alcohol markets, with
annual revenue estimated at $40 billion. Diageo is the
nation’s biggest alcohol company by market share, with its
popular brands competing with the likes of Pernod Ricard.
The locally made spirits subject to the regulator’s bans are
more affordable than imported rum, whisky and Scotch.
The Food Safety and Standards Authority of India (FSSAI)
said it allows the use of natural flavouring substances in
alcoholic drinks, but its tests found that some Diageo and
Inbrew factories were adding flavours of the alcoholic beverage
itself, like adding rum flavour to rum.
“There is no internationally recognized manufacturing
practice whereby rum flavour is added to rum or whisky flavour
is added to whisky,” the FSSAI said in a statement late on
Sunday.
Such flavours would allow companies to bypass maturation or
the use of natural ingredients such as molasses, malt, or
grapes, FSSAI added.
OLD RUM BRANDS, POPULAR WHISKIES
The FSSAI said it has ordered a ban on sales from Diageo’s
Indian subsidiary United Spirits, including popular
brands such as Antiquity Blue Whisky and Royal Challenge Whisky
made in Madhya Pradesh state and Inbrew’s Bagpiper Deluxe Whisky
and Old Cask Deluxe XXX Rum produced in the same state.
The FSSAI also banned sales of three popular variants of Old
Monk – one of India’s best-known and oldest rum brands – made by
Mohan Rocky Springwater in western Maharashtra.
Diageo India, Inbrew and Mohan Rocky Springwater did not
respond to requests for comment.
Royal Challenge Whisky is one of Diageo’s most popular
products in India, described on its website as “a perfect fusion
of scotch, Indian malts and grain spirits that’s been blended to
perfection.” Over 4.5 million nine-litre cases of Royal
Challenge are sold every year in India, Diageo says.
Alcohol pricing differs in each Indian state but in Uttar
Pradesh, a 375 millilitre bottle of the Royal Challenge
whisky costs just 360 Indian rupees ($3.78).
A Reuters review of its product label said it contained
water, grain neutral spirit, scotch with “permitted natural
colour” as well as “nature identical (whisky) flavouring
substances”.
“SUB-STANDARD”
The FSSAI tests found the products investigated were
“sub-standard due to the presence of external artificial or
nature identical flavours in the product,” the regulator said.
Two senior industry executives said the companies were
concerned about the order, and they believed the addition of
flavours was in line with Indian regulations. They declined to
be named as the matter is sensitive.
It was not clear if the ban extended to the same brands
being produced in other company factories, or only in a few
states. The FSSAI did not respond to Reuters queries.
The FSSAI’s action comes as the regulator tightens scrutiny of
the food and beverage sector.
It has ordered makers of high-caffeine beverages sold as
“energy drinks” to stop using that description, rejecting
efforts by the likes of Pepsi and Red Bull to stall the
regulatory intervention, Reuters reported last week.
(Reporting by Aditya Kalra; Additional reporting by Saurabh
Sharm; Editing by Jamie Freed, Kirsten Donovan)
Corporate News Consumer Goods Food & Beverages 
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