Final answer:
The false statement is that EU regulations allow the word "distilled" on gin labels when botanicals are merely soaked in pre-distilled product, as distilled gin actually requires distillation with the botanicals in the still.
Step-by-step explanation:
The statement that is FALSE among the given options is the third one: EU regulations allow the word "distilled" on the label when botanical essences are mixed into pre-distilled product as long as the botanicals are allowed to soak for 24 hours or more.
According to EU regulations, for gin to be labeled as "distilled gin," the spirits must be distilled or re-distilled with the botanicals (such as juniper berries and other flavorings) present in the still, not just mixed in after distillation. The other statements are true; re-distillation is a common method for producing distilled gin, the direct distillation method is acceptable in the U.S., and the EU does recognize both distilled and compounded methods of gin production.