FSSAI told PepsiCo, Red Bull, Monster, Reliance, and Hell Energy to drop "energy drink" labels. The industry has 90 days to comply after a closed-door meeting.
India's food safety regulator told PepsiCo, Red Bull, Monster Beverage, Reliance Industries, and Hell Energy to stop calling their high-caffeine products "energy drinks," rejecting industry efforts to stall the order at a closed-door meeting on Friday, according to documents and people familiar with the matter.
The Food Safety and Standards Authority of India issued notices in early July on social media, saying no Indian standards exist for such products and that claims a beverage "vitalizes body and mind" or can "aid in general weakness" are misleading. The private message was tougher: drop the term "energy drink" or any similar descriptor, confidential documents show.
At the meeting with senior industry executives, FSSAI Chief Executive Rajit Punhani dismissed arguments about business impact and said companies could challenge the decision in court, two people familiar with the discussion said. A government source told Reuters the industry agreed to comply after the meeting, and the FSSAI has given them 90 days to make the change.
The Indian Beverage Association, which represents major companies, said it is committed to complying with regulations and engaging on science-based policy. In a confidential July 6 letter to the FSSAI, it warned that 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 wrote, adding that a "predictable, consultative and transparent" framework is essential. The FSSAI and Punhani did not respond to Reuters queries. PepsiCo declined to comment. Red Bull, Monster, Reliance, and Hell Energy did not respond.
The crackdown hits a fast-growing market. India's energy-drink retail sales are projected to reach $1.6 billion by 2028, growing 12.6% annually, faster than in the United States and China, according to Euromonitor. Volumes rose nearly 100% annually between 2018 and 2023. The boom started after PepsiCo launched Sting in 2017. Its ₹20 plastic bottles proved popular among 15- to 19-year-olds and in rural areas, making it the market leader.
The business is built on instant-energy marketing. Red Bull's "Gives You Wiiings" slogan is globally known. PepsiCo's Sting ads show it sending lightning through the body, giving "electrifying energy." Removing the category label, companies fear, could damage brands built around those claims and disrupt sales.
Energy drinks have sparked health concerns among some regulators globally. High-caffeine energy drinks will be banned for under-16s in England from April next year. Some regions in Pakistan mandate they be called "stimulant drinks." This month, India's Rajasthan state seized thousands of Sting, Reliance's Campa Energy, and Red Bull as part of its enforcement drive. 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 is promoted as an "energy drink." The e-commerce companies did not respond to Reuters queries.
"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, who consumes Sting and Reliance's Campa Energy. "I feel I am addicted to them."
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