Delhi High Court Sets Aside FSSAI Order on Red Bull’s ‘Energy Drink’ Label

following a recent order of the Delhi High Court which set aside an order from the food regulator of India restricting the labeling. 

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It was held by the court that the decision to do so was made without giving Red Bull a chance to state its side of the story. 

The matter has been pending since June when the regulator told manufacturers of beverages rich in caffeine content to discontinue the labeling. Red Bull challenged the decision in court. 

Other beverage companies, including Pepsi, Monster Beverage and Reliance, had also privately raised concerns over the move, but did not take the legal route. 

Red Bull’s India unit had argued before the court that suddenly removing the description would create uncertainty for its existing and planned investments. It also questioned the change when the underlying product standard had not been altered. 

The matter may not end with Tuesday’s ruling. An official from the government who has knowledge of these plans said to Reuters that FSSAI would file an appeal regarding the decision on public health considerations. There was no response from the regulator to an inquiry. 

This is happening at a time when the energy drinks have emerged as a significant source of revenue in India. It is estimated that the market will hit $1.6 billion by 2028. The demand for energy drinks increased following the launch of Pepsi's Sting in 2017. Its bottles priced at ₹20 became very popular especially among 15 to 19-year-old people and rural customers, reported Euromonitor. 

High-caffeinated energy drinks have also come under the scanner of regulators elsewhere in the world owing to fears related to caffeine, sugar, and taurine. In England, the sale of such drinks will be banned among those under 16 years from April next year. 

For Red Bull, the Delhi High Court order removes the immediate restriction on using the “energy drink” description. FSSAI’s planned appeal, however, means the dispute over how these beverages can be labelled in India is likely to continue.