Smirnoff Ice faces

investigation in US American regulators have begun an inquiry into Smirnoff Ice as part of a wider inquiry into the flavoured malt-beverage category. The Bureau of Alcohol, Tobacco and Firearms (BATF) is investigating the branding of the category amid concerns that it might be misleading for customers. Bottles of Smirnoff Ice in the US do not contain vodka but rather a "malt beverage" derivative ­ a fermented type of alcohol which experts say is closer to beer than vodka. Paul Walsh, Diageo chief executive, said: "We don't see this as a problem. People who like Smirnoff Ice like it because of the the way it tastes, not because of what the ingredients are or because of how the alcohol is derived." The BAFT is believed to be conducting consumer inquiries into whether Smirnoff Ice drinkers are concerned about the lack of vodka in Smirnoff Ice. A spokesman for Diageo added: "Smirnoff Ice is a blend of pure Smirnoff vodka and the classic taste of lemon and is available outside the US. In the US only, Smirnoff Ice is a citrus-flavoured malt beverage. The rationale for having a malt-based formulation in the US is that it allows us to increase the number of channels where we can sell Smirnoff Ice. "For example, in the US we are able to market and sell this product in grocery or convenience stores that may prohibit the sale of distilled spirits. We are looking forward to hearing the results of the BAFT review.