Red Bull Takes FSSAI To Court Over Ban On “Energy Drink” Label In India
New Delhi: Red Bull has taken the Food Safety and Standards Authority of India (FSSAI) to court over the regulator’s decision to stop beverage companies from using the term “energy drink” on certain high-caffeine products.
The Austrian beverage company has challenged the order in the Delhi High Court, arguing that it was issued without giving the company prior notice and has created uncertainty around its operations and investments in India.
The dispute follows an order issued by FSSAI in July, when the food regulator gave several major beverage companies 90 days to remove the words “energy drink” or similar descriptions from products containing high levels of caffeine.
The companies affected include Red Bull, PepsiCo, Monster Beverage, Reliance and Hell Energy.
According to FSSAI, India currently does not have a specific regulatory standard for products marketed as “energy drinks”. Instead, such beverages are regulated under the category of caffeinated beverages, and the regulator maintains that the use of the term “energy drink” violates existing rules.
Red Bull Challenges The Order
In its court petition, Red Bull has argued that the regulator’s direction was issued without giving the company an opportunity to respond beforehand.
The company has also said the order is creating uncertainty for its investments and business plans in India.
The issue has already caused difficulties for beverage companies dealing with existing stock and future production.
A source from a leading beverage company had earlier told NDTV Food that companies had stopped manufacturing new products while distributors were struggling to sell existing stock.
While some smaller distributors were reportedly continuing to purchase limited quantities for sale at roadside stalls, dhabas and kiosks, larger distributors supplying supermarkets and retail chains were becoming cautious about stocking products that could soon require changes to their labels.
This, the source said, was creating a bottleneck in the distribution of existing inventory.
Delhi High Court Seeks Clarity From FSSAI
The Delhi High Court on Monday asked FSSAI whether the regulator had issued a notice to Red Bull before directing the company to stop using the “Energy Drink” descriptor on its products.
The matter is scheduled for further hearing today.
The legal challenge comes as the regulator prepares to defend its decision in court.
Why FSSAI Objects To The Term “Energy Drink”
FSSAI’s concern is primarily about how these products are presented to consumers.
According to the regulator, the main source of the perceived energy in many such beverages comes from ingredients such as added sugar and caffeine. It has argued that the term “energy drink” could give consumers the impression that the products provide special health or energy-related benefits.
The regulator has also raised concerns about promotional claims used by some beverage brands, including phrases such as “vitalises body and mind” and “helps in general weakness”.
FSSAI has said such claims could potentially mislead consumers if they suggest health benefits that are not supported under the applicable regulations.
The food regulator is expected to defend its position before the Delhi High Court as the dispute over the “energy drink” label continues.
News Source : Information for this article was gathered from a variety of reliable news outlets.
