Overview: United Spirits has withdrawn its High Court plea challenging restrictions imposed by the Food Safety and Standards Authority of India (FSSAI) on select rum variants. The regulator revoked the ban earlier in August, resolving a dispute centered on the use of added ‘rum flavour’ in products sold as rum. Diageo, the parent company of United Spirits, agreed to comply with directives to remove disputed flavouring agents or relabel drinks while retaining beverage composition.
The Full Story
United Spirits informed stock exchanges on 18 August that FSSAI had cancelled its 29 June order restricting sale of products made at its Baramati plant in Mumbai. The company previously argued that adding ‘rum flavour’ to rum was a long-standing industry practice and questioned the regulator’s powers without findings of consumer harm. Mint reported that the cancellation occurred as Diageo and other liquor makers agreed to comply with FSSAI directives, either removing the disputed flavouring agents or relabeling their drinks. The change in label will take place retaining the composition of the alcoholic beverage intact.
Mohan Rocky Springwater Breweries, maker of Old Monk rum, faced a similar ban and continues its challenge before the Bombay High Court. Inbrew Beverages also had products included in the FSSAI ban alongside United Spirits and Mohan Rocky variants. Specific items affected included Bagpiper Deluxe Whisky and Old Cask Deluxe XXX Rum produced by Inbrew Beverages, as well as select McDowell’s No. 1 Rum, Antiquity Blue Whisky and Royal Challenge Whisky manufactured by United Spirits.
Brand & Industry History
Old Monk has been sold for more than five decades according to senior counsel Navroz H. Seervai representing Mohan Rocky Springwater during a hearing. The prohibition was causing the company losses of almost Rs. 1 crore a day, highlighting the economic impact of regulatory actions on established brands in India.
What This Means
The dispute stems from laboratory tests conducted by FSSAI, which found external artificial or nature-identical flavouring substances in the products. According to the regulator, these substances masked the products’ natural characteristics under the Food Safety and Standards (Alcoholic Beverages) Regulations, 2018. Adding “rum flavour” to rum or “whisky flavour” to whisky misrepresents these standardized products, requiring compliance with regulations that require beverages to possess their characteristic taste and aroma.
Consumer Takeaway
Many consumers of Old Monk see their choice unaltered by a new label mentioning added ‘rum flavour’. Delhi-based consumer Karan Kapur noted that the prohibition was causing losses but questioned if a label would change consumption, stating “I choose Old Monk because of its taste profile.”
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