United Spirits part of Diageo sues Maharashtra over rum labeling
United Spirits (part of Diageo) is taking Maharashtra to court after the state banned McDowell's No. 1 Celebration Matured XXX Rum, saying its label stated the product contains "artificial flavor (rum)" while FSSAI argued the "flavor of rum should be characteristic based on the natural ingredients, fermentation processes, and maturation techniques."
United Spirits says the food safety officer acted too quickly and without proper process, arguing the ban was unfair, especially since FSSAI began talking to the industry about these rules days after.
India's $40B alcohol industry faces bans
This isn't just about one bottle: India's $40 billion alcohol industry is facing a wave of bans for alleged mislabeling, hitting both global names like Diageo and local brands.
The Bombay High Court has asked the central government to weigh in by August 19, but hasn't paused the ban for now.