FSSAI's 'energy drink' crackdown sends distributors into panic mode

New Delhi: The food regulator's 90-day deadline to drop "energy drinks" labels from packs has triggered panic among distributors across the country, who refused to pick up existing stocks of energy drinks from companies leading to shortages of dozens of brands including RedBull, PepsiCo's Sting, Monster, Hell, Campa Energy and Coca-Cola's Thums Up Charged at retail shelves.

The issue has become a flashpoint between FSSAI and companies, executives said. The regulator has alleged violations relating to product naming and labelling, adding it does not recognise such a category.

"The fate of the category hangs in balance as multiple distributors are not picking up existing stocks from companies. Also, there are thousands of cans with the "energy drinks" label stuck in the Strait of Hormuz too, since cans are mostly imported from West Asia-all that will go to waste," said an executive at a large energy drinks maker.

While companies have asked for extension of the 90-day deadline, national foods regulator Food Safety & Standards Authority of India, which issued the directive on July 2, has refused. India's energy drinks market, estimated at ₹13,000-crore in annual sales, is growing at 20-25% amid rising adoption, specially from younger consumers.

Two other executives said various state-level FDA authorities have started seizing stocks from distributor warehouses, though the directive is yet to be implemented.

Emails sent to offices of RedBull, PepsiCo, Reliance and Coca-Cola remained unanswered. Executives at Monster and Hell energy drinks could not be reached for comments.

FSSAI did not respond to emailed queries till press time.

In a recent letter addressed to FSSAI CEO Rajit Punhani, which ET has seen, the Indian Beverage Association (IBA) secretary general Gunveena Chadha urged the regulator for 'prior industry consultation and opportunity of representation' before enforcement of the new directive comes into play. Chadha's letter added that "the standards were published after years of deliberation, including risk assessment, multiple stakeholder consultations, and with recommendations of an expert group."

In July, FSSAI directed companies to stop using the term "energy drink" on such products, stating that India has no notified standard for an "energy drink" category and that the label, along with claims such as "vitalises body and mind" or "boosts energy" could mislead consumers.