Indian food safety officials have seized around 18,000 boxes of liquor bottles belonging to Diageo India after finding that certain plastic bottles did not carry a mandatory marking indicating that the recycled material used in them was suitable for food contact, Reuters reported on Monday.
The action was taken during an inspection of United Spirits’ facility in Bengaluru, where officials found that some bottles made using recycled polyethylene terephthalate (PET) did not display the required government-mandated symbol.
Diageo India confirmed the regulatory action, saying some of its bottles had been quarantined by authorities pending further directions. The company maintained that its products are safe for consumption and said the bottles were sourced from a recycler approved by the Food Safety and Standards Authority of India (FSSAI).
The company also said mandatory testing had been carried out by its suppliers and that it was working with the regulator on the matter, as per the Reuters report.
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What Did FSSAI Find At Diageo’s Facility?
According to government documents, inspectors found that the plastic bottles carried markings identifying them as being made from PET, but lacked the specific symbol required for recycled PET that is approved for food-grade use.
The finding raised concerns over compliance with food safety, labelling and misbranding requirements.
The authorities said the seizure was carried out as a public health measure.
The inspection focused on smaller plastic bottles, which are generally used for liquor sold in quantities of around 180 ml. Most of Diageo’s larger liquor bottles are made from glass.
The action reportedly covered products worth around $1.6 million, along with plastic material. More than half a dozen brands were affected, including DSP Black Deluxe Whisky, Smirnoff Zesty Lime Triple Distilled Flavoured Vodka and VAT 69 blended Scotch whisky.
Diageo Faces Wider Regulatory Scrutiny
The latest action comes at a difficult time for Diageo’s India business, which has faced multiple regulatory concerns in recent weeks.
The FSSAI has separately taken action against two popular Diageo whisky brands over allegations involving maturity declarations and the use of artificial flavouring.
The regulator has also raised questions over a claim that one of Diageo’s leading whiskies was “matured in American oak casks”, with officials finding that most of the product had not undergone the claimed maturation process.
The scrutiny is part of a broader push by India’s food regulator to tighten compliance across the food and beverage industry, including alcoholic drinks and energy drinks.
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India A Key Market For Diageo
The regulatory action is significant for Diageo because India is one of its most important markets globally.
Diageo recorded around $3 billion in revenue from India in the year ended March 2026, making it one of the country’s two leading foreign liquor companies alongside France’s Pernod Ricard.
Diageo has previously described India as its “consumer market of the decade”, underlining the importance of the country to its global growth strategy.
India’s alcoholic beverage market is estimated at around $40 billion, and the latest regulatory measures could have a wider impact because they involve Indian Made Foreign Liquor (IMFL), which includes locally produced spirits sold under international-style brands.
For now, the seized Diageo products remain quarantined as the company engages with FSSAI. The immediate dispute centres on the marking and compliance of recycled plastic packaging, rather than a finding that the liquor itself was unsafe for consumption.
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