Reliance, PepsiCo, Monster get court breather over ‘energy drink’ label ban

The Delhi High Court on Tuesday stayed a food regulator's order that barred Mukesh Ambani-led Reliance Industries from selling its Campa beverages as “energy drinks”, giving the company interim relief in its challenge against the labelling restriction, Reuters reported Tuesday.

PepsiCo and Monster Beverage can also keep the "energy drink" label on products in India after the court's hold.

The relief came after Reliance Consumer Products, the beverages arm of Reliance Industries, challenged a June 30 order by the Food Safety and Standards Authority of India (FSSAI) directing makers of high-caffeine beverages sold as “energy drinks” to stop using the description.


Reuters reported that Reliance filed a writ petition dated October 1, seeking to quash the regulator’s order. The company said state authorities had seized its stock and e-commerce platforms had been directed to delist the affected products.

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At Tuesday’s hearing, the Delhi High Court questioned FSSAI’s lawyer on why the regulator had not issued Reliance a notice before passing the order. The court said it was “never too late” for the regulator to correct the issue, as per a Reuters report.

The case will next be heard on November 5.

What Reliance told the court

Reliance said the regulatory action had disrupted its business and hurt its market presence.

“Such actions have caused and are causing substantial disruption to the Petitioner's business operations and adversely affect its market presence and commercial goodwill,” Reliance Consumer Products said in its filing, according to Reuters.

The company also told the court that it has large quantities of packaging and finished products carrying the “Energy Drink” label.

Also Read: Reliance asks court to quash ban on marketing Campa drinks as ‘energy drinks’

According to the October filing reviewed by Reuters, Reliance had 168 million cans and 120 million plastic bottles of finished inventory bearing the label. It also had pre-printed packaging for another 400 million cans and 360 million bottles carrying the “Energy Drink” description.

The company said the regulatory action had therefore created a significant business impact.

Why is FSSAI targeting ‘energy drink’ labels?

The June 30 directive is part of a wider food-safety crackdown in India. FSSAI has directed makers of certain high-caffeine beverages to stop using the term “energy drink”, saying the regulator does not recognise “energy drink” as a separate category under its food safety regulations and that there are no defined standards for such products. The regulator has also raised concerns over functional or therapeutic claims made by some brands.

The move has triggered a legal fight involving some of the biggest names in the beverage industry.

Red Bull was among the first companies to challenge the order. On September 29, the Delhi High Court set aside FSSAI’s order directing Red Bull India to remove the term “energy drink” from its caffeinated beverages. The court found that the regulator had not given the company a show-cause notice or an opportunity to respond before passing the order, violating the principle of natural justice. It allowed FSSAI to take a fresh decision after following due process and giving Red Bull an opportunity to be heard.

PepsiCo and Monster Beverage also challenged the regulator’s decision, as per Reuters.

The regulatory action has also created pressure across the industry. ET had reported in July that distributors had begun refusing to pick up existing stocks of several energy drink brands, including Red Bull, PepsiCo’s Sting, Monster, Hell and Campa Energy, after FSSAI’s 90-day deadline to remove the “energy” label.

Campa’s energy drink ambitions at stake

The dispute is particularly significant for Reliance as it seeks to expand Campa in India’s rapidly growing beverage market.

Reliance revived the Campa brand in 2023 and has used its large retail network and competitive pricing to take on established players such as Coca-Cola and PepsiCo.

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Its Campa portfolio has also expanded into the energy drinks segment. The regulatory action could therefore affect Reliance’s plans in a market where retail sales of energy drinks are growing 12.6% annually, according to Euromonitor data cited by Reuters.

India’s energy drink market has expanded rapidly in recent years, helped by products aimed at younger consumers and lower-priced offerings. The market is expected to be worth $1.6 billion by 2028, Reuters reported earlier.