United Spirits Withdraws HC Plea After FSSAI Revokes Ban On Its Rum

(MENAFN- Live Mint) Mumbai: United Spirits on Monday withdrew its court challenge to restrictions imposed by the Food Safety and Standards Authority of India (FSSAI) on some of its rum variants, after the regulator revoked the ban earlier this month. The dispute centred on use of added 'rum flavour' in products sold as rum, a practice FSSAI had objected to. Old Monk maker Mohan Rocky Springwater Breweries, which faced a similar ban, is continuing its challenge before the Bombay High Court.

United Spirits had challenged the order in the court, arguing that adding 'rum flavour' to rum was a long-standing industry practice. The company also questioned the powers of the regulator to stop sale of the products even though there were no findings of the product harming consumers. On 18 August, United Spirits informed the stock exchanges that FSSAI had cancelled its 29 June order that had restricted sale of products made at its Baramati plant.

Diageo denied to comment on the matter, while Mint's emailed queries to FSSAI were not answered until press time.

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Mint had on 18 August reported that the cancellation came as Diageo, parent company of United Spirits, and other liquor makers agreed to comply with FSSAI directives to either remove the disputed flavouring agents or relabel their drinks. The sources also said that the change in label will take place retaining the composition of the alcoholic beverage intact.

Old Monk rum maker Mohan Rocky Springwater Breweries had also suffered a similar ban by FSSAI and went on to challenge that order in Bombay High Court; and the matter will be heard next Monday. The court had earlier clubbed the petition filed by United Spirits with Mohan Rocky Springwater Breweries' plea.

In a 10 August hearing, senior counsel Navroz H. Seervai, representing Mohan Rocky Springwater, said Old Monk has been sold for more than five decades and that the prohibition was causing the company losses of almost ₹1 crore a day.

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Many consumers of Old Monk see their choice unaltered by a new label mentioning added 'rum flavour'.“I choose Old Monk because of its taste profile. Will a label or the lack thereof change my consumption of it? Perhaps not,” said Delhi-based consumer Karan Kapur, 35.

What FSSAI objected to?

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.

Based on its findings, FSSAI prohibited sale of specific variants of McDowell's No. 1 Rum, Antiquity Blue Whisky and Royal Challenge Whisky manufactured by United Spirits; select Old Monk rum variants of Mohan Rocky Springwater; and Bagpiper Deluxe Whisky and Old Cask Deluxe XXX Rum produced by Inbrew Beverages.

FSSAI cited the Food Safety and Standards (Alcoholic Beverages) Regulations, 2018, which require standardized alcoholic beverages such as rum and whisky to possess their characteristic taste and aroma. The regulator argued that adding“rum flavour” to rum or“whisky flavour” to whisky misrepresents these standardized products.

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