Pick up a bottle of Royal Challenge whisky and the label tells you exactly what you're buying: a rich blend of Indian grain spirit and imported Scotch, matured in American oak casks. It's the kind of line that's supposed to do a lot of quiet work, signal patience, craftsmanship, a reason the bottle costs what it costs. Unfortunately, India's food safety regulator doesn't believe the label is telling the truth.

FSSAI’s Notice to Royal Challenge

On July 20, 2026, the Food Safety and Standards Authority of India (FSSAI) sent Diageo a confidential (later reported by Reuters) notice identifying a specific issue: flip the bottle over and the second ingredient listed, right after demineralised water, is grain neutral spirit. According to FSSAI, most of what's in the bottle simply hasn't spent time in a cask at all. It told Diageo the whisky is not “matured in wood cask” as claimed, and that this misleads consumers. Moreover, as per the FSSAI Regulations, any age claim on a blend has to reflect the youngest spirit in the mix, not the oldest. Further, the front label says the blend includes "imported Scotches." FSSAI wanted to know “which Scotch, exactly” and stated that the word on its own is too vague to mean anything to a consumer trying to figure out what they're drinking.

Two weeks before this notice became public, FSSAI had already moved. On Sunday, August 2, 2026, it announced a ban on the sale of several whisky and rum brands made in the state of Madhya Pradesh, Diageo's Antiquity Blue Whisky and Royal Challenge among them, along with Inbrew's Bagpiper Deluxe Whisky and Old Cask Deluxe XXX Rum. The reasoning there was different: the regulator said these products relied on artificial, "nature-identical" flavouring rather than genuine ageing.

Understanding Alcohol Labelling Requirements in India

The principal framework is the Food Safety and Standards (Alcoholic Beverages) Regulations, 2018, which prescribes standards for alcoholic beverages and requirements relating to their composition and labelling. The framework has subsequently been amended, including through amendments notified in 2025. 

Age and Maturation Claims

Briefly, where an age claim is made using the word “aged”, the age must refer to the youngest spirit in the blend, rather than the oldest component or an average. Further, an alcoholic beverage described as “matured” must have been matured for at least one year in oak or other suitable wooden vats or barrels, or with wooden chips.

Flavoring and Product Standards

The FSAAI Regulations do not impose a blanket ban on use of all flavoring substances in alcoholic beverages. On the contrary, the regulations expressly contemplate the inclusion of certain flavoring agents for differing beverages. For instance, gin’s profile under the Regulations has been distinguished with flavour of “juniper berries and or other flavoring agents of botanical origin.” The FSSAI Regulations create product specific standards for different alcoholic beverages to ensure that they correspond to their specific characteristic taste and aroma. Addition of any flavoring substances in violation of the prescribed standards is prohibited to ensure that the consumers are not deceived to the true nature of the alcohol being consumed. 

Misleading Claims

The issue extends beyond mandatory label declarations. The Food Safety and Standards Act, 2006 defines “misbranded food” to include food offered or promoted with false, misleading or deceptive claims on the label or in advertising. Section 24 separately restricts misleading advertisements and unfair trade practices relating to food. Accordingly, claims concerning age, maturation, ingredients, composition, origin or other product characteristics must accurately represent the product and should be capable of substantiation.

From FSSAI Action to Diageo’s Rebranding Decision 

The crackdown has since moved to court. United Spirits, Diageo's Indian subsidiary, has challenged the prohibition imposed on McDowell's No. 1 Celebration Matured XXX Rum before the Bombay High Court, arguing that the Food Safety Officer lacked authority to issue the order and that the statutory procedure was not followed. The Bombay High Court declined to grant any immediate relief and sought the Union government's response by August 19, 2026.

With the proceedings still pending in Court, Diageo has now agreed to reformulate its affected products by removing the disputed flavouring substances from the beverages. Simultaneously, the brand has also agreed to disclose any additional flavouring added to its products via front of the pack labels as it transitions to reformulating its products.

FSSAI has also shifted gears to investigate allegations of Diageo Liquor bottles lacking adequate marking to depict that they were made of safe recycled plastic. The heightened scrutiny by FSSAI signals a new shift within the Indian beverage industry, necessitating greater diligence by businesses to ensure that their products comply with the applicable food safety standards and requirements. 

Conclusion

The recent developments underscore a more rigorous approach to alcoholic beverage compliance. Manufacturers and brand owners should particularly:

• review age and maturation claims
• verify the regulatory basis and use of flavouring substances;
• ensure claims concerning ingredients, composition, origin and product characteristics are accurate and substantiated;
• maintain records supporting formulations, maturation, testing and labelling; and
• review State excise requirements alongside the central FSSAI framework.