Royal Challenge maker gets hit with a label check

India's food safety regulator, the Food Safety and Standards Authority of India (FSSAI), has issued a warning to liquor giant Diageo regarding misleading labeling claims on one of its popular whiskies. According to a confidential government notice reviewed by Reuters, the regulator claimed that Diageo falsely stated that its top-selling Royal Challenge Whisky was matured in American oak casks, when in fact, most of the product had not been matured.

This is another complaint by the regulator, following an assertion of improper flavoring that led to the ban of certain spirits this month. Additionally, some whisky and rum brands made in various Indian states by Diageo and India's Inbrew have also been banned for using artificial flavoring instead of proper aging and ingredients.

The FSSAI did not respond to inquiries about the assertions regarding maturation, but Diageo India, the local unit of United Spirits, stated that they remain committed to quality standards and are actively engaging with FSSAI to address their concerns. The regulatory crackdown on India's $40 billion alcohol industry, which has led to some legal challenges, is part of the regulator's increasing scrutiny of liquor companies, energy drink makers, and food producers over incorrect labeling and weak compliance.