India's food safety regulator inspected a Pernod Ricard (PERP.PA) factory last week and collected liquor samples, four sources said, as part of a wider investigation into the $40 billion sector in which Diageo (DGE.L) has faced scrutiny.
One of the sources, an Indian government official, said Pernod had been told it needs to improve hygiene at the plant in the southern city of Bengaluru, and that markings signalling the use of recycled plastic on its bottles need to be correct.
Pernod on Wednesday confirmed the visit by food safety inspectors, saying: "Regulatory inspections are an established part of the industry's compliance framework, and we are working constructively with the authorities".
The French company said in a statement to Reuters, which is the first news outlet to report the inspection, that it maintains robust quality and safety standards.
Food Safety and Standards Authority of India (FSSAI) officials inspected the Pernod plant over two days, collected liquor samples for testing and sought some documentation, three of the sources, who declined to be named due to the confidentiality of the matter, told Reuters.
FSSAI officers have not issued any adverse findings against Pernod, the three sources added.
The FSSAI, which has not made details of its visit public, did not respond to requests for comment.
In India's biggest food safety crackdown in years, the FSSAI shocked the industry earlier this month by banning several whisky and rum brands of Diageo and some other Indian companies, alleging the improper addition of flavours.
Diageo has agreed to reformulate some popular brands to win a ban reversal in some states, Reuters reported this week.
POPULAR WHISKY SAMPLES COLLECTED
One of the sources said FSSAI officials collected samples of Blenders Pride, which Pernod says is its "top premium blended whiskies in India", and Royal Stag, which the company says was the first whisky in India not to use any artificial flavourings.
In Diageo's case, FSSAI flagged issues over labelling and for wrongly adding whisky flavour in its whiskies. Separately, it seized around 18,000 boxes of Diageo (DGE.L) liquor bottles when it visited its factory for allegedly lacking markings to show they were made using safe recycled plastic, Reuters reported last week.
Pernod faces several challenges in India, including a $314 million demand for allegedly undervaluing Scotch whisky imports, an antitrust case and a separate ban in New Delhi over liquor policy violations, which it denies.
