Red Bull warns of investment hit as it sues India regulator over 'energy drink' label ban

By Reuters News

By Aditya Kalra

NEW DELHI, Sept 28 (Reuters) - Austrian beverage maker Red Bull has sued India's food regulator for prohibiting the use of the "energy drink" descriptor without issuing any warning notice, which is impacting its existing and planned investments in India, its court filing showed.

India in June ordered makers of high-caffeine beverages sold as "energy drinks" to stop using that description, ​rejecting efforts to stall the regulatory intervention in a fast-growing market expected to be worth $1.6 billion by 2028.

The move has triggered a standoff as Pepsi PEP.O, Red Bull, Monster Beverage MNST.O and billionaire Mukesh Ambani's Reliance RELI.NS feared removing the ⁠category label could damage brands built around instant-energy claims and disrupt sales, Reuters has reported.

In the first legal challenge against the move, Red Bull sued the Indian food safety regulator in the Delhi High Court on September 25, saying legal processes were not followed as no prior warning notice was issued, according to the company's filing, which is not public but which was reviewed by Reuters.

Red Bull's India unit said the "abrupt prohibition" of the descriptor, without any change to the underlying product standard, "introduces substantial regulatory uncertainty and adversely affects" its existing and planned commercial investments, its court filing said.

The Food Safety and Standards Authority of India did not immediately respond to Reuters queries.

Energy drinks have sparked health concerns among some regulators globally 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.


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