Diageo is facing a legal battle with the EU over what constitutes vodka.

According to a report in the UK newspaper The Times today, the EU has drafted regulations on spirits that tighten the definition of vodka. It is proposed that vodka be defined as a drink fermented with yeast from "raw materials based on grain, potato, sugar beet and/or molasses".

However, Diageo's super-premium vodka brand Ciroc is made from grapes and therefore falls short of the proposed rules.

The Times reported that the UK's Gin and Vodka Association (GVA) has taken up Diageo's case, arguing that the regulations would in effect remove a legal product from the market without any technical or health reason.

Standing against Diageo and the GVA are vodka producers in Finland, who claim that Diageo previously agreed to the revised definition, The Times said.