Delhi HC Quashes FSSAI Order Barring Red Bull To Use 'Energy Drink' Label
Summarized by AI; it may make mistakes. Check important info
Summarized by AI; it may make mistakes. Check important info
The Delhi High Court on Tuesday quashed a Food Safety and Standards Authority of India (FSSAI) order directing Red Bull to stop using the ‘energy drink’ label, saying the company was not given an opportunity to present its views.
Court Sets Aside FSSAI Order
The court reportedly agreed with Red Bull’s challenge that the regulator had taken the decision “without affording any opportunity” for the company to explain its position.
The ruling is a relief for Red Bull, while Pepsi, Monster Beverage and billionaire Mukesh Ambani’s Reliance had also privately criticised the regulatory move, fearing that removing the category label could hurt their brands. The three companies did not take legal action.
FSSAI had reportedly ordered manufacturers of high-caffeine beverages sold as ‘energy drinks’ to stop using the description in June. The regulator had rejected efforts to delay the move in a market expected to reach $1.6 billion by 2028.
A government official with direct knowledge of the plans told Reuters that FSSAI will appeal against the court’s decision on public health grounds. The regulator did not respond to requests for comment.
Red Bull Cited Regulatory Uncertainty
Red Bull’s India unit argued in its court filing that the prohibition created “substantial regulatory uncertainty” and adversely affected its existing and planned commercial investments.
The company reportedly said the “abrupt prohibition” was introduced without any change to the underlying product standard. It argued that the move was contrary to India’s stated policy of facilitating international trade, promoting investment and providing greater certainty to businesses.
Health Concerns Over Energy Drinks
Energy drinks have faced health concerns from regulators in several countries because of their caffeine, sugar and taurine content. Research cited in the source material suggests these ingredients can contribute to health problems including high blood pressure and heart problems.
In England, energy drinks will be banned for under-16s from April next year.
India’s Energy Drink Market
India’s energy drink market expanded rapidly after Pepsi launched Sting in 2017. Its ₹20 plastic bottles became popular among 15- to 19-year-olds and in rural areas, according to consumer research firm Euromonitor.
