Austrian energy drink maker Red Bull has approached the Delhi High Court challenging the Food Safety and Standards Authority of India’s (FSSAI) direction to stop using the descriptor “Energy Drink” on its products.
The dispute began after FSSAI gave beverage companies a 90-day period in July to remove the term “energy drink” or similar descriptions from high-caffeine beverages. The direction applies to companies including Red Bull, PepsiCo, Monster Beverage, Reliance and Hell Energy.
FSSAI has maintained that there are currently no specific Indian standards for products marketed as “energy drinks”. According to the food regulator, such beverages are regulated as caffeinated drinks, and describing them as “energy drinks” is not permitted under the existing regulations.
Red Bull, in its petition, has argued that the direction was issued without giving the company prior notice. It has also claimed that the decision has created uncertainty for its investments and business operations in India.
The regulatory move has also affected the distribution of existing stock.
As per the online sources, the Food that manufacturing of new products had been stopped, while distributors were facing difficulties in selling existing inventory.
Smaller distributors were reportedly continuing to purchase limited quantities, while larger distributors supplying supermarkets and retail chains had become reluctant to stock products that could require changes to their labels.
During the hearing on Monday, the Delhi High Court asked FSSAI whether it had issued any prior notice to Red Bull before directing it to discontinue the use of the “Energy Drink” descriptor. The matter is listed for further hearing today.
FSSAI has argued that the main source of energy in many such beverages is added sugar, along with their high caffeine content. It has also maintained that food labels should not mislead consumers and that the term “energy drink” could create an impression of special health or energy benefits.
The regulator has further raised concerns over promotional claims such as “vitalises body and mind” and “helps in general weakness”, saying such claims could mislead consumers.
A government source said FSSAI will defend its decision before the Delhi High Court.
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