header logo
Vallibel FD
Mogo Academy
Selan Bank
Other
India orders Pepsi, Red Bull, Monster and others to drop ‘energy drink’ label despite industry protests
Jul 28, 202609:50 AM
India orders Pepsi, Red Bull, Monster and others to drop ‘energy drink’ label despite industry protests
Mobitel inner 1278

India has ordered makers of high-caffeine beverages sold as "energy drinks" to stop ​using that description, rejecting efforts to stall the regulatory intervention in a fast-growing market expected to be worth $1.6 billion by 2028, according to documents and sources.

 

India's food safety regulator said on social media in early July it had issued notices to companies saying there were no Indian standards for such products and claims that a beverage "vitalizes ‌body and mind" or ⁠can "aid in ⁠general weakness" were misleading. It gave no further details.

 

In private, the message from the Food Safety and Standards Authority of India (FSSAI) was even tougher: Pepsi, Red Bull, Monster Beverage, billionaire Mukesh Ambani's Reliance and Hell Energy must drop "energy drink" - or any similar descriptor, according to confidential documents and people familiar with the matter.

 

The move has triggered a standoff ​with companies, who fear removing the category label could damage brands built around instant-energy claims and disrupt sales. At a closed-door meeting with senior industry executives on Friday, FSSAI Chief Executive Rajit Punhani rejected arguments over the business impact, saying companies were free to challenge the decision in court, two people ​familiar with the discussion said.

 

FSSAI and Punhani did not respond to Reuters queries.

 

Pepsi declined to ⁠comment, while ‌the other companies did not respond. Reuters is first to report the lobbying efforts and India's decision.

 

An Indian government source ​said the industry ​agreed to comply with the labelling change after the Friday discussion, and the FSSAI has given them 90 days ⁠to comply. Energy drinks have sparked health concerns among some regulators globally who worry they contain ​high caffeine, sugar and taurine, an amino acid. High-caffeine energy drinks will be banned for under-16s in ​England from April next year, and some regions in Pakistan mandate they be called "stimulant drinks".

 

INDUSTRY WOES, 'ELECTRIFYING ENERGY' ADS

 

The energy drinks business is built on instant-energy marketing.

 

Red Bull's "Gives You Wiiings" slogan is globally famous, while Pepsi promotes its Sting energy drink in Indian ads that show it sends lightning through one's body, giving "electrifying energy".

 

The Indian Beverage Association, which represents major companies, said it was committed to complying with regulations and engaging constructively with regulators on science-based policy.

 

But in a confidential July 6 letter to FSSAI, it said public disclosure of preliminary notices could damage reputations, disrupt operations and confuse consumers. ‌It urged a "risk-based enforcement approach".

 

"Regular stakeholder consultations before implementing significant interpretational changes would facilitate smoother compliance, reduce litigation," the association said, adding a "predictable, consultative and transparent" framework was essential.

 

'I AM ADDICTED'

 

India's energy-drinks market boomed after Pepsi launched Sting in 2017. Its ​20-rupee ($0.21) plastic bottles proved ​popular among 15- to 19-year-olds and in ⁠rural areas, helping make it a market leader, Euromonitor says.

 

Retail sales are projected to reach $1.6 billion by 2028, growing 12.6% annually, faster than in the United States and China. Volumes rose nearly 100% annually between 2018 and 2023, Euromonitor says.

 

"Every time when we feel hungry or go out ​for a smoke, I buy one drink. It fills my stomach and it gives me strength to work," said Sunny Rajvansi, 24, a bike mechanic in Uttar Pradesh state, who consumes Sting and Reliance's Campa Energy.

 

"I feel I am addicted to them." This month, India's Rajasthan state has seized thousands of Sting, Campa Energy and Red Bull as part of its enforcement drive, the government's social media posts show. On July 8, the state also told e-commerce companies including Amazon, Walmart's Flipkart, Eternal's Blinkit and Swiggy Instamart to ensure no product was promoted as an "energy drink", a letter showed.

 

The e-commerce companies did not respond to Reuters queries.

 

Source: Reuters

 

--Agencies  

Disclaimer: All the comments will be moderated by the AD editorial. Abstain from posting comments that are obscene, defamatory or slanderous. Please avoid outside hyperlinks inside the comment and avoid typing all capitalized comments. Help us delete comments that do not follow these guidelines by flagging them (mouse over a comment and click the flag icon on the right side). Do use these forums to voice your opinions and create healthy discourse.

Comments

0
Comments are disabled

Note: Due to legal constraints, the Ada Derana Editorial team has taken a decision to disable comments on all articles concerning ongoing court procedures.

MostRead
Mobitel 1278
VideoStories
Sri Lanka at UN backs Palestinian rights; FM Herath urges stronger multilateral action & UN reforms

Sri Lanka at UN backs Palestinian rights; FM Herath urges stronger multilateral action & UN reforms

Namal remanded again in two cases;  CIABOC tells court illicit funds were used for Krrish project

Namal remanded again in two cases; CIABOC tells court illicit funds were used for Krrish project

Metro takes another step forward:  112 more buses added to service as President joins launch

Metro takes another step forward: 112 more buses added to service as President joins launch

New education reforms set for Grades 2 and 6 next year; Cabinet gives nod for 2027 implementation

New education reforms set for Grades 2 and 6 next year; Cabinet gives nod for 2027 implementation

39th shooting in 2026 rocks Baddegama; ‘Kalu Nona’ killed in suspected gang rivalry in the South

39th shooting in 2026 rocks Baddegama; ‘Kalu Nona’ killed in suspected gang rivalry in the South

“Have built a nation where law applies regardless of status” No one is above the law, President says

“Have built a nation where law applies regardless of status” No one is above the law, President says

Global Power shifting towards Asia from West; Nations battling for supremacy in Indian Ocean –Patali

Global Power shifting towards Asia from West; Nations battling for supremacy in Indian Ocean –Patali

Navy seizes Rs. 1.5 billion narcotics haul in Jaffna; One suspect arrested, dinghy seized

Navy seizes Rs. 1.5 billion narcotics haul in Jaffna; One suspect arrested, dinghy seized

Floodwaters persist as many rivers reach minor flood levels, several areas still inundated

Floodwaters persist as many rivers reach minor flood levels, several areas still inundated

Ex-Deputy Minister Sarana Gunawardena’s wife remanded over bribery charges

Ex-Deputy Minister Sarana Gunawardena’s wife remanded over bribery charges

Sri Lanka’s Parliament approves 22nd Amendment to Constitution with a special majority

Sri Lanka’s Parliament approves 22nd Amendment to Constitution with a special majority

Colombo International Book Fair 2026 Inaugurated at BMICH by Prime Minister

Colombo International Book Fair 2026 Inaugurated at BMICH by Prime Minister

Ajith P. Perera says hasty amendments cannot create new political culture

Ajith P. Perera says hasty amendments cannot create new political culture

Dilith Jayaweera urges MPs to vote according to conscience on 22nd Amendment

Dilith Jayaweera urges MPs to vote according to conscience on 22nd Amendment

Sri Lanka’s rating upgrade reflects continued progress

Sri Lanka’s rating upgrade reflects continued progress

Lassana Flora