Delhi High Court overturns India food regulator order forcing Red Bull to drop “energy drink” label, easing uncertainty for Pepsi, Monster and Reliance in a fast-growing market amid health concerns over high caffeine and sugar
NEW DELHI: An Indian court on Tuesday quashed the food regulator’s order to stop Austrian beverage firm Red Bull using the label “energy drink” on its cans, saying the decision had been taken without allowing the company to explain its position.
In June, India ordered makers of high-caffeine beverages sold as “energy drinks” to stop using the description, rejecting efforts to stall the move in a market expected to be worth $1.6 billion by 2028.
The decision triggered a standoff, as Pepsi, Red Bull, Monster Beverage and billionaire Mukesh Ambani’s Reliance feared removing the category label could damage brands built around instant-energy claims, Reuters has reported.
Hearing Red Bull’s challenge to the regulatory order, the Delhi High Court on Tuesday set aside the order, saying it agreed with the company that the regulator took the decision “without affording any opportunity” to the company to provide its views.
Red Bull’s India unit had said the “abrupt prohibition” of the label, without any change to the underlying product standard, “introduces substantial regulatory uncertainty and adversely affects” to its existing and planned commercial investments.
Energy drinks have sparked health concerns among regulators in several countries around the world who worry they contain high caffeine, sugar and taurine, an amino acid. They will be banned for under-16s in England from April next year.
Source: Emirates 24|7