India’s food safety regulator has refused to extend the deadline for beverage companies to remove the phrase ‘energy drink’ from labels, prompting a swift industry scramble and raising public health concerns amid soaring market growth.
India’s food safety regulator is refusing to give global beverage companies extra time to strip the words “energy drink” from their labels, a move that threatens to force a rapid overhaul of packaging and sales across one of the world’s fastest-growing markets for caffeinated drinks. According to Reuters, the Food Safety and Standards Authority of India privately told companies in July that they had 90 days to stop using the phrase, or any similar description, on high-caffeine beverages because India has no official standard for such products and the wording breaches existing rules.
The dispute has put PepsiCo, Red Bull, Monster Beverage and Reliance Consumer Products in a difficult position. Industry sources told Reuters that the companies have asked for at least a year to comply, arguing they have millions of cans and bottles already in circulation or on order, including imported packaging. But a government source said the regulator will not extend the deadline, adding that several states have indicated that current stocks can be cleared within 60 to 90 days and that companies have not provided enough detail on inventory by state to support traceability.
The pressure has intensified in recent weeks. In July, the Food Safety and Standards Authority of India issued notices to several beverage makers, including Red Bull and PepsiCo India, over alleged misbranding and misleading claims, saying no standard has been notified for “energy drinks” or similar products. The regulator has also said that the food category system under the 2011 regulations is not meant to be used as a product name or labelling device, while a 2024 clarification on e-commerce platforms instructed retailers to remove such products from “Health Drinks / Energy Drinks” sections and place them in the correct category.
The standoff matters because India’s energy drink market has expanded quickly, with Euromonitor estimating retail sales growth of 12.6% a year and nearly a doubling between 2018 and 2023. The category reached 907 million litres last year, helped by low-priced products such as PepsiCo’s Sting, which gained traction after its 2017 launch among teenagers and in rural areas. At the same time, the label fight has taken on a public-health dimension, with regulators elsewhere also scrutinising caffeine-heavy drinks; England has already said it will ban their sale to under-16s from next April. Reuters reported that state officials in Rajasthan have seized thousands of cans from brands including Sting, Campa Energy and Red Bull, and Ladakh authorities have said inspections and seizures are under way.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
