Diageo India acknowledged the regulatory measure, stating that some of its bottles “have been quarantined by authorities pending further instructions.” The company mentioned that these bottles were sourced from a recycler approved by the Food Safety and Standards Authority of India and that mandatory tests were conducted by the suppliers.
“Our products are entirely safe for consumption … We are in discussions with FSSAI for further guidance on this issue,” stated Diageo India’s unit United Spirits in a comment to Reuters.
FSSAI officials visited the United Spirits factory in Bengaluru last week, where they were informed that the Diageo India unit utilized recycled plastic bottles. However, a government memo indicated that the required markings were absent.
“This raised significant concerns about food safety, as well as issues of misleading and misbranding compliance regarding the safety of finished alcoholic beverages for consumers,” the memo reported. The seizure was carried out for public health reasons, the document noted.
The FSSAI did not respond to inquiries regarding the seizure of thousands of Diageo bottles, a story being reported by Reuters for the first time.
The food standards regulator is increasingly cracking down on liquor companies, energy drink manufacturers including PepsiCo, and food producers concerning labeling and compliance issues.
SOME SMIRNOFF, WHISKY BOTTLES CHECKED
During inspections, regulators discovered that Diageo’s bottles only included markings indicating they were created from polyethylene terephthalate (PET), whereas they should have displayed a government-mandated recycled PET symbol that also signifies they are food-grade, according to another government memo.
Most large bottles of Diageo products are made of glass, but this action specifically targeted plastic bottles typically sold in smaller quantities of around 180 milliliters.
Products with an estimated value of $1.6 million, along with plastic material, were seized during the inspection in the southern city, affecting more than six brands such as DSP Black Deluxe Whisky, Smirnoff Zesty Lime Triple Distilled Flavoured Vodka, and VAT 69 blended scotch whisky, the memos revealed.
Diageo has referred to India as its “consumer market of the decade” and maintains that it adheres to legal requirements.
For the fiscal year ending March 2026, Diageo reported revenues of $3 billion in India, establishing itself as one of the two leading foreign players in the market, alongside France’s Pernod Ricard.
The FSSAI’s actions come just days after it prohibited two of Diageo’s well-known whisky brands, claiming misleading assertions regarding the maturity of the liquor and the use of artificial flavoring.
This crackdown on flavoring, affecting both some local companies and Diageo, has sent shockwaves through India’s $40 billion alcohol industry, particularly concerning popular Indian Made Foreign Liquor (IMFL), which consists of locally produced spirits modeled after international brands.
The FSSAI has also alerted Diageo about misleading claims regarding one of its top-selling whiskies, which was said to be “matured in American oak casks,” despite most of the product not having undergone maturation, Reuters reported on Saturday.
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First Published: Aug 11, 2026 7:08 AM IST