Red Bull sues India food regulator over ‘Energy Drink’ label ban
Red Bull says India’s labelling prohibition creates regulatory uncertainty and threatens its investments as the country’s energy drinks market continues to expand.
INDIA – Austrian beverage maker Red Bull has challenged India’s food regulator in the Delhi High Court over a prohibition on using the “energy drink” descriptor, saying the move was imposed without prior notice and threatens its investments in India.
Red Bull’s India unit filed the challenge on September 25, arguing that the Food Safety and Standards Authority of India (FSSAI) did not follow the required legal process before prohibiting the term on products.
The company said the abrupt prohibition was introduced without any change to the underlying product standard. According to its court filing, the move introduces substantial regulatory uncertainty and adversely affects its existing commercial investments.
Red Bull also argued that the order conflicts with India’s stated policy of facilitating international trade, promoting investment and providing greater certainty to businesses. The company said the measure’s effect is to bring the petitioner’s entire business to a standstill.
A government source said FSSAI would defend its decision in court, arguing that the regulator had historically not permitted the use of “energy drinks” on product labels.
The dispute comes as India’s energy drinks market expands. Euromonitor estimates retail sales are growing 12.6% annually and are expected to reach $1.6 billion by 2028, with growth outpacing the United States and China.
The Indian market expanded after PepsiCo launched Sting in 2017. Euromonitor said its 20-rupee ($0.21) plastic bottles became popular among consumers aged 15 to 19.
Red Bull’s India revenue reached $130 million in 2024, more than double its revenue four years earlier, according to the report.
The company is among several beverage businesses affected by India’s enforcement drive over food standards and labelling requirements. Pepsi, Monster Beverage and Reliance have also raised concerns about the prohibition, according to Reuters.
This is the first legal challenge to the measure. England is scheduled to prohibit sales of energy drinks to under-16s from April next year.
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