An Indian court on Tuesday overturned the food regulator’s directive that barred Austrian beverage company Red Bull from labeling its products as “energy drinks.” The court ruled that the decision was made without giving Red Bull an opportunity to present its case.
This ruling is a significant relief not only for Red Bull but also for other key players such as Pepsi, Monster Beverage, and billionaire Mukesh Ambani’s Reliance, who had privately opposed the regulator’s move. However, these companies did not pursue legal challenges.
In June, the Food Safety and Standards Authority of India (FSSAI) had ordered producers of high-caffeine beverages marketed as “energy drinks” to cease using that description. This came despite attempts to delay the enforcement in a market projected to reach $1.6 billion by 2028.
During the hearing of Red Bull’s petition, the Delhi High Court agreed with the company’s argument that the regulator had acted without allowing Red Bull to submit its viewpoint, leading to the order being set aside.
Meanwhile, the FSSAI plans to appeal the court’s decision on the grounds of public health concerns, as confirmed by a government official familiar with the matter. The regulator has not issued any public comments on the ruling.
Red Bull India contended that banning the “energy drink” label created significant regulatory uncertainty and negatively impacted its current and future business investments.
Energy drinks have raised health alarms globally due to their high caffeine, sugar, and taurine content—an amino acid linked to health risks such as hypertension and heart issues. Notably, England will ban energy drink sales to individuals under 16 starting April next year.
The Indian energy drink market expanded rapidly after Pepsi introduced Sting in 2017. Its affordable 20-rupee ($0.21) plastic bottles gained popularity among teenagers aged 15 to 19 and rural consumers, Euromonitor research.
In its legal submission, Red Bull argued that India’s ban contradicted the country’s policy goals of promoting international trade, encouraging investment, and providing business certainty. The company emphasized that the sudden prohibition of the label was imposed without any amendment to the product standards.
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