FSSAI orders Pepsi, Red Bull, Monster to drop ‘energy drink’ label from high-caffeine products

India's food safety regulator has directed beverage manufacturers to stop using the term "energy drink" on the labels of high-caffeine beverages, a move that has faced opposition from major companies, including Pepsi, Red Bull, Monster Beverage, Reliance, and Hell Energy, according to a Reuters report.

Earlier this month, the Food Safety and Standards Authority of India (FSSAI) said there are currently no prescribed Indian standards for products marketed as “energy drinks”. The regulator also raised concerns that promotional claims such as "vitalises body and mind" or "helps in general weakness" could mislead consumers.

As part of the directive, FSSAI has instructed companies to remove the phrase “energy drink” and other similar descriptions from product packaging and labels.

During a meeting with industry representatives on Friday, FSSAI Chief Executive Rajit Punhani reportedly dismissed concerns that the decision could negatively affect businesses. He also told companies they were free to challenge the regulator's order in court if they disagreed with it.

According to a government source, the companies later agreed to comply with the directive and have been given 90 days to revise their product labels.

IBA urges for a more collaborative approach

The Indian Beverage Association (IBA), which represents several leading beverage manufacturers, has urged the regulator to adopt a more collaborative approach while introducing such policy changes.

In a letter sent to the FSSAI on 6 July, the association argued that making regulatory notices public without prior consultation could harm corporate reputations, disrupt business operations, and create confusion among consumers. It also called for regular engagement between the regulator and the industry before implementing significant regulatory changes.

The association reiterated its commitment to complying with government regulations and to working closely with authorities to develop science-based policies.

India's energy beverage segment has expanded rapidly in recent years, particularly after Pepsi launched its Sting brand in 2017. The low-priced drink gained widespread popularity among teenagers, young adults, and consumers in smaller towns and rural markets.

According to Euromonitor, India's energy drinks market is projected to reach $1.6 billion by 2028, with an annual growth rate of 12.6%. The report also noted that sales volumes almost doubled each year between 2018 and 2023.

Many consumers say they regularly consume these beverages because they believe the drinks help them stay alert and maintain energy levels throughout the day. Some users have also acknowledged that they have become dependent on the products.

Regulatory enforcement has already begun in Rajasthan, where authorities have seized thousands of bottles of Sting, Campa Energy, and Red Bull during a crackdown on products marketed as energy drinks.

On 8 July, the Rajasthan government also instructed major e-commerce platforms, including Amazon, Flipkart, Blinkit, and Swiggy Instamart, to ensure that such products are not advertised or promoted as "energy drinks."