NEW DELHI, August 10 (Reuters) – Indian inspectors have confiscated approximately 18,000 boxes of Diageo liquor bottles due to an alleged absence of markings indicating they were produced using safe recycled plastic. This action represents the latest challenge for the world’s largest spirits group, according to government sources.
Diageo India confirmed the regulatory intervention, stating that some of its bottles “have been quarantined by authorities until further direction.” The company clarified that these bottles were sourced from a recycler approved by the Food Safety and Standards Authority of India (FSSAI), and mandatory tests were conducted by the suppliers.
“Our products are completely safe for consumption… We are engaging with FSSAI for further direction on this matter,” Diageo India unit United Spirits told Reuters in a statement.
FSSAI officials visited United Spirits’ factory in Bengaluru last week. During their inspection, they were informed that the Diageo India unit utilized recycled plastic bottles, but the required markings were found to be missing, as per a government memo.
“This raised serious food safety, misleading and misbranding compliance concerns regarding the safety of finished alcoholic beverages for consumers,” the memo stated, adding that the seizure was conducted in the interest of public health.
The FSSAI has not yet responded to inquiries regarding the seizure of the thousands of Diageo bottles, an incident which Reuters is reporting for the first time. The food standards regulator has adopted an increasingly stringent approach towards liquor firms, energy drink manufacturers like PepsiCo, and food producers concerning labeling and compliance issues.
During their checks, inspectors discovered that Diageo’s bottles only bore markings indicating they were made from polyethylene terephthalate (PET). However, they should have displayed a government-mandated recycled PET symbol, which also signifies their food-grade quality, according to a second government memo. While the majority of large Diageo drink bottles are glass, this action specifically targeted plastic bottles used for smaller retail quantities, typically 180 milliliters.
The inspection in the southern city resulted in the seizure of products and plastic materials valued at approximately $1.6 million, affecting more than half a dozen brands. These included DSP Black Deluxe Whisky, Smirnoff Zesty Lime Triple Distilled Flavoured Vodka, and VAT 69 blended scotch whisky, as detailed in the memos.
Diageo, which has previously referred to India as its “consumer market of the decade,” has maintained its compliance with the law. The company recorded a revenue of $3 billion in India in the fiscal year ending March 2026, positioning it as one of the two dominant foreign players in the market alongside France’s Pernod Ricard.
This move by the FSSAI follows closely on the heels of another decision days prior, where the regulator barred two of Diageo’s popular whisky brands. Those actions stemmed from allegations of misleading declarations regarding the liquor’s maturity and the use of artificial flavoring.
The crackdown on flavoring, which has also impacted some Indian companies, has significantly rattled India’s $40 billion alcohol industry. This is due to its implications for popular Indian Made Foreign Liquor (IMFL), which are locally produced spirits modeled after international brands.
Additionally, the FSSAI had previously cautioned Diageo for allegedly making misleading claims that one of its top-selling whiskies was “matured in American oak casks,” when in fact, the majority of the product had not undergone such maturation, as reported by Reuters on Saturday.
