Tezzbuzz Desk- The government's strictness regarding rules for liquor manufacturing companies in India is continuously increasing. Meanwhile, McDowell's manufacturing company Diageo has decided to change the formula of some of its popular liquor products. The ongoing dispute between the company and the Food Safety and Standards Authority of India (FSSAI) regarding some flavoring agents used in liquor has now been resolved through an agreement. After this, the bottlenecks in the sales of affected brands including McDowell's No. 1 are expected to be removed.
Actually, FSSAI had raised objection regarding certain flavoring agents used in liquor. The regulator laid emphasis on following the rules regarding the use of these materials and their labeling. It also affected United Spirits Limited's popular brand McDowell's No. 1 Celebration Matured XXX Rum. The threat of ban on this product of the company was looming.
Initially, the Indian unit of Diageo had approached the Bombay High Court against the action of FSSAI. The company's argument was that necessary procedure was not followed while taking action against it. However, now instead of pursuing a long legal dispute, the company has chosen the path of changing the formula of its product. Under the agreement with FSSAI, those flavoring ingredients, about which the regulator had raised objections, will be removed from the product. The change in the formula can also have a direct impact on the taste of the liquor. After the flavoring agent is removed, the taste of McDowell's Rum may feel slightly different than before. However, how big the change will be will depend on the new formula and other ingredients used in it. Along with this, the company will also have to make necessary changes in the labels on the bottles, so that the product can conform to the new rules. With this, customers will be able to get information related to the ingredients used in liquor in a more clear manner.
After this agreement, the way has been cleared for lifting the imposed or proposed ban on the affected brands. This will help the company to continue selling its popular products normally in the Indian market. India is an important market for Diageo, hence it is very important for the company to follow the regulatory rules. This entire matter also shows the increasing strictness of FSSAI regarding monitoring the quality of liquor and the ingredients used in it. The regulator wants to ensure that the liquor sold in the market conforms to the prescribed safety and quality standards. Besides, it is also important to provide correct and clear information on the bottles, so that customers can get adequate information about the product.
The issue of flavoring is not the only challenge facing Diageo. Recently, the officials had also seized about 18 thousand liquor cases from the company. This action was taken regarding alleged violation of rules related to plastic packaging. Allegations of negligence in marking recycled plastic and following rules had come to light. Although this matter related to packaging is different from the flavor controversy, but both incidents show that regulatory monitoring of the liquor industry has become much stricter than before. Now it has become necessary for the companies to follow not only the quality of liquor but also the rules related to its manufacturing, materials used, packaging and labeling. In the case of McDowell's too, the new formula and changed labeling will be the company's next step in this direction.