Energy Drink Archives - Indiagnostic

Summary:India’s food safety regulator FSSAI is expected to reject beverage companies’ request to extend the 90-day deadline for removing the “energy drink” label from high-caffeine products, creating uncertainty for PepsiCo, Red Bull, Monster and Reliance. While companies want a year to comply due to existing inventories and packaging orders, authorities say stocks can be cleared within 60–90 days. The issue has also intensified following product seizures in states including Rajasthan and Ladakh, as regulators step up enforcement of labelling rules amid growing scrutiny of energy drinks. India’s food safety authority is expected to reject requests from major beverage companies to extend the current 90-day deadline for removing the “energy drink” label from certain high-caffeine products to 12 months, according to a government source. The move could create significant disruption for the beverage industry. PepsiCo, Red Bull, Monster Beverage and Reliance, owned by billionaire Mukesh Ambani, are facing increased regulatory scrutiny from the food safety authorities as the government tightens enforcement of product labelling requirements across the food and beverage sector. In July, the Food Safety and Standards Authority of India (FSSAI) privately instructed companies to remove the term “energy drink” and similar descriptions from high-caffeine beverages within 90 days. The regulator said India does not have specific standards for such products and that using the designation violates existing regulations. India’s energy drink market is expanding rapidly. Euromonitor estimates retail sales are growing by 12.6% annually, outpacing the United States and China. Sales increased by nearly 100% between 2018 and 2023 and reached 907 million litres last year, equivalent to more than 3 billion bottles or cans. The FSSAI is unlikely to approve an extension because several Indian states have indicated that existing inventories can be cleared within 60 to 90 days, the government source said. The companies, however, have requested at least a year to comply, citing millions of bottles and cans already in circulation and outstanding orders for imported packaging, according to three industry sources. A government official said the companies had violated regulations by using the “energy drink” classification and should consider themselves fortunate that the authorities had not initiated prosecution. The official also said the companies had failed to provide FSSAI with details of the quantity of inventory held in each state, information required to maintain product traceability. Industry representatives said tracking stocks across multiple states was difficult because of the enormous quantities involved. FSSAI, Red Bull, Monster and Reliance Consumer Products did not respond to Reuters’ requests for comment, while PepsiCo declined to comment. State seizures add to industry concerns Energy drinks have also attracted health-related scrutiny internationally because of their high levels of caffeine and sugar, as well as the presence of taurine. England is set to prohibit the sale of such beverages to people under 16 from April next year. According to industry sources, major beverage companies are also urging the Indian government to intervene against seizures being carried out by some state authorities. Last month, Rajasthan authorities confiscated thousands of bottles of Pepsi’s Sting, Reliance’s Campa Energy and Red Bull during an enforcement campaign. The food safety authorities in the Union Territory of Ladakh also said they would seize stocks found during inspections. Ladakh’s food safety office said the seizures are part of an ongoing district-level inspection campaign, under which beverages held by retailers and distributors are being checked for compliance with labelling rules. India’s energy drink market expanded sharply after Pepsi introduced Sting in 2017. Euromonitor estimates that its ₹20 plastic bottles have become particularly popular among consumers aged 15 to 19 and in rural areas. Industry executives from PepsiCo, Red Bull and Monster reportedly raised their concerns over the labelling requirements with Food Processing Minister Chirag Paswan on Tuesday and sought his assistance. Paswan said on X that the ministry remains committed to encouraging investment, innovation and employment generation in the sector.

Tag: Energy Drink

India regulator maintains ‘energy drink’ labelling deadline, raising concerns among companies, sources say