FSSAI Seizes 18,000 Diageo Bottles Over Recycled Plastic Labelling Issue

Indian food safety inspectors have seized around 18,000 liquor bottles linked to Diageo in Bengaluru over alleged non-compliance with mandatory markings for recycled plastic, according to government sources. The action adds to a series of regulatory interventions involving the spirits company in India.

Diageo India confirmed the regulatory action and said some of its bottles "have been quarantined by authorities until further direction". The company said the bottles were sourced from a recycler approved by the Food Safety and Standards Authority of India (FSSAI), and that mandatory testing had been conducted by suppliers.

"Our products are completely safe for consumption ... We are engaging with FSSAI for further direction on this matter," Diageo India unit United Spirits ⁠told Reuters in a statement.

The action followed an FSSAI inspection at United Spirits' factory in Bengaluru last week. According to a government memo, officials were informed that the company was using recycled plastic bottles but found that the required markings were absent.

"This raised serious food safety, misleading and misbranding compliance concerns regarding the safety of finished alcoholic beverages for consumers," the memo said. The seizure was carried out in the interests of public health, according to the document.

The inspection found that the bottles carried markings identifying them as polyethylene terephthalate (PET), but did not display the government-mandated recycled PET symbol indicating that the material was suitable for food use. The enforcement action primarily involved smaller plastic liquor bottles, generally sold in 180 millilitres formats. While most of Diageo's larger bottles are made of glass, the inspection focused on the plastic packaging used for smaller retail formats.

Products valued at around $1.6 million, along with plastic material, were seized during the Bengaluru inspection. The action affected more than half a dozen brands, including DSP Black Deluxe Whisky, Smirnoff Zesty Lime Triple Distilled Flavoured Vodka and VAT 69 blended scotch whisky.

The development comes as FSSAI has increased scrutiny of labelling and product compliance across the food and beverage industry, including alcoholic beverages and energy drinks. The regulator has also taken action involving Diageo's products over labelling and flavouring-related concerns.

Diageo has previously said it complies with Indian laws. The company recorded revenue of $3 billion in India for the year ended March 2026, making it one of the two major foreign spirits companies in the Indian market alongside Pernod Ricard.

The latest action follows an earlier FSSAI move involving two Diageo whisky brands over alleged misleading declarations concerning liquor maturation and artificial flavouring. The regulator has also raised concerns over a claim that one of the company's leading whiskies was "matured in American oak casks", with Reuters reporting that most of the product had not been matured.

The regulatory scrutiny comes against the backdrop of India's $40 billion alcohol industry, where compliance requirements around product labelling, ingredients, packaging and manufacturing claims are becoming increasingly important for spirits companies operating across retail and hospitality channels.