PepsiCo, Monster, Reliance win reprieve on 'energy drink' label ban in India
The regulator in June ordered makers of high-caffeine beverages sold as "energy drinks" to stop using the description, rejecting the industry's efforts to stall the move in a market expected to be worth $1.6 billion by 2028.
Mukesh Ambani's Reliance Industries has filed a lawsuit against India's food regulator for prohibiting the company from labeling its Campa-brand products as "energy drinks", according to recent court papers. The lawsuit, dated October 1, challenges a June 30 directive from India's food safety regulator that ordered manufacturers of high-caffeine beverages sold as "energy drinks" to stop using the term.
PepsiCo and Monster Beverage also sued the regulator over the ban, while Red Bull obtained a court stay to continue using the label. The regulatory crackdown is part of India's broader food safety initiative this year, which includes seizures, shutdowns, and new warning-label requirements. Reliance Consumer Products Ltd, the beverages division of Reliance, claims the actions have caused significant disruption to its business operations and are detrimental to its market presence and commercial goodwill.
The Food Safety and Standards Authority of India (FSSAI) has not yet commented on the matter. Reliance revived the Campa brand in 2023 and has leveraged its retail network and competitive pricing to challenge market leaders Coca-Cola and PepsiCo. The ban on labeling threatens Reliance's expansion plans in India's rapidly growing energy drinks market, where retail sales are projected to rise by 12.6% annually, surpassing growth in the US and China, as reported by Euromonitor.
Written by urgent.news from Business Recorder's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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