The Food Safety and Standards Authority of India initiated legal actions against companies including PepsiCo and Monster Beverage following a June prohibition on the term "energy drink." Officials raised warnings regarding the potential health effects linked to elevated concentrations of taurine, caffeine, and sugar in these products. While the Delhi High Court allowed brands to sell off existing inventory, it strictly banned the contested phrasing on all future production runs.
Key points
Beverage makers including Red Bull, PepsiCo, and Reliance Consumer are actively fighting…: Beverage makers including Red Bull, PepsiCo, and Reliance Consumer are actively fighting the regulator's labeling ban in court.
Manufacturers are currently barred from applying the term "energy drink" to any new produ…: Manufacturers are currently barred from applying the term "energy drink" to any new production runs.
The impending court hearing serves as a major test of regulatory authority over national…: The impending court hearing serves as a major test of regulatory authority over national food labeling standards.
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The legal battle is part of an unprecedented food safety crackdown in India and is seen as a test of how far the regulator can go in policing labels. The energy drinks market is set to be worth $1.6 billion by 2028, with sales growing 12.6% annually, faster than in the US and China, Euromonitor says.
PepsiCo, which popularized energy drinks in India with its 2017 launch of 21-cent bottles of Sting drink, and Monster Beverage have mounted separate legal challenges against a June decision barring use of the term "energy drink", arguing the regulator acted without warning or giving the companies a chance to be heard.
The FSSAI, seeking dismissal of the challenges, said India had never established standards for an energy drink category.
"Purposely in order to dupe the consumers, a product is being marketed as a 'Energy Drink'," FSSAI said in court filings dated October 28.
The Delhi High Court last month did allow the companies to exhaust their old stock with "energy drink" labels, but not to use the label for any new stock.
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