Red Bull challenges food safety regulator’s ban on ‘energy drink’ label

Austrian beverage giant Red Bull has contested India's decision to ban the term "energy drink" on high-caffeine products, arguing that the ban was issued without prior notice and creates uncertainty for its investments in the country. Red Bull India has filed a petition at the Delhi High Court, contending that the regulatory process was not followed before the ban on the globally recognized descriptor.

This marks the first legal challenge to the move, which is part of a broader food safety enforcement campaign in India involving surprise inspections and compliance assessments by major firms. In June, Indian authorities directed manufacturers of high-caffeine beverages marketed as "energy drinks" to stop using the term on their products, rejecting efforts to delay the intervention in a market projected to reach USD 1.6 billion by 2028.

Red Bull's petition, filed on September 25, claims that the prohibition was imposed without altering the standard product, causing substantial regulatory uncertainty and adversely affecting its investments. The company also argued that the order conflicts with India's policy of facilitating international trade and providing certainty to businesses.

Red Bull asserts that the ban will effectively halt its entire business operations. India's food safety regulator, FSSAI, plans to defend the decision in court. Authorities have historically prohibited the use of "energy drinks" on product labels. The energy drinks market in India has witnessed rapid growth, with retail sales estimated to expand at a 12.6% annual rate, outpacing markets in the US and China.

Major players like Pepsi, Monster Beverage, and Reliance have also been impacted by the regulatory crackdown.