Red Bull wins India court reprieve to use 'energy drink' label
NEW DELHI: An Indian court on Tuesday quashed the food regulator’s order to stop Austrian beverage firm Red Bull using the label “energy drink” on its cans, saying the decision had been taken without allowing the company to explain its position. The decision will come as a major relief for Red Bull, but also Pepsi, Monster Beverage and billionaire Mukesh Ambani’s Reliance, which in private had…
On Tuesday, an Indian court granted a reprieve to Austrian beverage giant Red Bull, allowing the company to continue using the term "energy drink" on its cans. The court ruled that the regulator's order to stop using the label had been made without giving Red Bull the chance to present its side of the argument. This decision is a significant win for Red Bull, but also for its competitors Pepsi, Monster Beverage, and billionaire Mukesh Ambani's Reliance, who had all criticized India's move in private.
The regulator had banned high-caffeine beverages sold as "energy drinks" in June, rejecting efforts to halt the decision in a market expected to be worth $1.6 billion by 2028. The Delhi High Court set aside the order, agreeing with Red Bull that the regulator had made the decision "without affording any opportunity" to provide its views.
Red Bull's India unit had argued that the prohibition of the label "introduces substantial regulatory uncertainty and adversely affects" its commercial investments. Energy drinks have raised health concerns among regulators worldwide, who fear they contain high levels of caffeine, sugar, and taurine, which can contribute to health problems like high blood pressure and heart issues.
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