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Welcome back, today is Monday, August tenth, and we begin in India, where Reuters reports inspectors have seized thousands of Diageo bottles in a food safety crackdown.
The exposure here sits in the packaging, not the liquid. Reuters reports that inspectors from the Food Safety and Standards Authority of India seized around eighteen thousand boxes of Diageo bottles at United Spirits' factory in Bengaluru last week, and says it is reporting that seizure first. Per a government memo cited in that account, the bottles carried a PET marking but lacked the government-mandated recycled-PET symbol that also certifies the material as food-grade, which the memo said raised food safety and misbranding concerns. The same reporting puts the haul at about one point six million dollars of product plus plastic material, across more than half a dozen brands, including DSP Black Deluxe whisky, Smirnoff Zesty Lime vodka and VAT sixty-nine. The action focused on the one hundred and eighty millilitre plastic formats. United Spirits told Reuters the bottles are quarantined until further direction, that they came from a regulator-approved recycler with mandatory supplier testing, and that its products are completely safe for consumption. This follows the flavouring prohibitions we reported last week, and industry reaction leans toward reading it as escalating compliance scrutiny rather than an isolated packaging issue. That reads against scale: the same reporting puts Diageo's India revenue at three billion dollars in the year to March.
Also today, the ownership of a Champagne house is back in play. Just Drinks reports that Henkell Freixenet's talks to buy a majority stake in Maison Pommery and Associés have ended without an agreement with the French wine and Champagne group. That is the whole of what the report states, and it leaves the stake unplaced at a moment when buyers and sellers are visibly apart on what Champagne assets are worth. Industry reaction leans toward reading the collapse as price discovery rather than a closed door, the aggregate view being that the seller is open to a deal but not at any price, and the suitor willing at the right one. Some in the trade read it as an early signal of a wider consolidation wave building across wine. Treat that as sentiment. No terms, valuation or next steps have been reported.
Separately, Treasury Wine Estates has set out a plan to lift returns in a pressured Americas business. Just Drinks reports the company will, in its words, rebalance its US supply chain, framing the move as accelerating the improvement of future returns, and that investors reacted positively. The mechanism sits in inventory and route-to-market, which is where an imported wine portfolio either defends or loses margin in the Americas. Commentary leans toward reading the restructuring as a possible prelude to exiting the US rather than a fix for it, with several observers noting that outside advisers are said to be weighing options including asset sales. Neither the scope of the rebalancing nor any sale process is detailed in that report.
Back to India's regulator, where a separate notice goes at the label rather than the liquid. The Drinks Business, citing Reuters, reports the Food Safety and Standards Authority of India has told United Spirits that Royal Challenge's claim to be matured in American oak casks is misleading, in a confidential notice dated the twentieth of July. Per that account, the regulator said grain neutral spirit is the second ingredient after demineralised water and the major portion of the product is non-matured, and that any age claim must refer to the youngest spirit in the mix, not the oldest. The same notice called the label's reference to Scotch vague and told the company to specify which Scotch is used. Royal Challenge sells more than four and a half million nine-litre cases a year in India, so this test lands on core volume. United Spirits told Reuters it is actively engaging with the regulator on labelling, and told the exchanges it anticipates no financial implications from the earlier ban.
Now, a few more headlines moving the trade today. Suntory Global Spirits posted flat alcohol sales in the first half, with US weakness offsetting Asian growth, per The Spirits Business and Shanken News Daily.
Business Standard reports ten to thirty-six percent prestige-and-above growth in the June quarter at United Spirits, Radico Khaitan and Allied Blenders, with mix offsetting input costs.
Sixty-nine percent of Canadians say the government should maintain the boycott on American alcohol, according to an Abacus Data survey reported by The Spirits Business.
One last headline. Heimark Distributing has agreed to acquire Alford Distributing of Imperial, California, per Brewbound, extending wholesaler consolidation in the southern part of the state.