In a massive development for India beverage industry, the Delhi High Court has set aside an order by the Food Safety and Standards Authority of India (FSSAI) that directed global brand Red Bull to stop using the term "Energy Drink" on its products.
The legal war began when FSSAI ordered makers of high caffeine beverages to drop the popular descriptor, classifying them strictly as caffeinated drinks instead. Food safety officials expressed concerns over high levels of caffeine, sugar, and taurine, arguing that labeling such beverages as "Energy Drinks" could mislead consumers about health benefits. Following this ban, health authorities even seized product stock at various locations across the country.
However, Red Bull challenged the government regulator in court, arguing that it had safely sold its famous beverage using the "Energy Drink" label in India since 2002. The company stressed that FSSAI had suddenly banned the phrase without giving them a chance to present their side or issue a proper notice. Agreeing with Red Bull, the High Court quashed FSSAI order on the grounds that the principles of natural justice were completely ignored. While this ruling provides immediate relief to Red Bull, the court has allowed FSSAI to examine the labeling issue again after giving a fair hearing.
