The Delhi High Court has granted interim relief to PepsiCo, Monster Beverage, and Reliance Industries, allowing them to continue using the 'energy drink' label on their products following a food safety regulator ban. According to Business Standard, the court granted interim relief to Reliance Consumer Products Limited to continue marketing its Campa beverages as 'energy drinks', providing immediate relief to the company in its challenge to a Food Safety and Standards Authority of India (FSSAI) directive restricting the use of the term for high-caffeine beverages. The relief came as the high court was hearing different pleas filed by the companies challenging the FSSAI orders passed in June and July, with the regulator having directed manufacturers to stop using the 'energy drink' descriptor on certain caffeinated beverages and warned of enforcement action. The matter will continue to be heard in the coming weeks as the court examines the broader implications of the label ban.
FSSAI issued notices to several beverage brands claiming to be 'energy drinks' for misbranding and misleading claims, as reported by Mint. The regulator named brands including Red Bull Energy Drink, PepsiCo India's Adrenaline Rush Energy Drink, Sting Energy Drink, Monster Energy, Hell-Energy Drink, and Reliance's Campa Energy Drink–Gold Boost for using the descriptor 'energy drink' on physical packaging and across various e-commerce platforms. FSSAI stated that its food category system is not intended for product naming or labelling, and warned that claims such as 'stimulates mind', 'energises body', 'enhances focus', 'boosts energy levels' and 'aids in general weakness' were not permissible unless legally supported. The Delhi High Court on 29 September set aside the notice served to Red Bull over 'energy drink' labelling, holding that the company should have been given an opportunity to respond before the regulator passed the order.
Reliance and PepsiCo have said that hundreds of millions of their beverage products labelled 'energy drink' have been abruptly taken out of circulation since the ban, causing significant financial losses and impacting investment plans. According to Business Standard, Reliance told the court that the directive had exposed a large amount of finished stock and packaging to the risk of becoming unusable, with the regulatory action already spilling over into its distribution network. State authorities had seized some of its stock, while e-commerce platforms were instructed to take the affected products off their platforms. As reported by Reuters, Reliance holds finished inventory of 168 million cans and 120 million plastic bottles, along with pre-printed packaging for an additional 400 million cans and 360 million bottles bearing the 'Energy Drink' labelling. The substantial inventory represents a significant financial impact on the companies' energy drinks business.
The label ban threatens the ambitions of PepsiCo, Monster Beverage, and Reliance in India's fast-growing energy drinks market, where retail sales are expanding 12.6% annually, outstripping growth in the US and China according to Euromonitor. According to Business Standard, Reliance argued that the consequences went beyond changing the wording on its labels, with packaging bearing the disputed description having already been manufactured in large quantities and could not readily be repurposed without causing further disruption to its supply chain. The crackdown is part of a broader, India-wide food safety push this year that includes raids, shutdowns and new warning-label requirements, driven by growing concern over the health risks posed by junk food. This makes the companies the latest beverage makers to challenge the food safety regulator's labelling crackdown, with the outcome potentially affecting not only their Campa products but also the way some of the country's largest beverage companies label and position their high-caffeine drinks.
The court's intervention gives Reliance immediate relief while the larger challenge remains pending, with the matter listed for November 5, according to Business Standard. PepsiCo and Monster Beverage filed their own challenges against the June 30 directive last week and are also scheduled to be heard by the Delhi High Court. The outcome of the proceedings could have implications across the beverage industry, particularly for companies that use the 'energy drink' description for high-caffeine products. During Tuesday's hearing, the court questioned FSSAI on why the company had not been issued a notice before the order was passed, with the court observing that it was 'never too late' for the regulator to rectify its mistake. The regulator's action forms part of a broader push towards tighter scrutiny of food and beverage products, including their labelling, warnings and product information.
