FSSAI holds firm on energy drink label ban, industry seeks reprieve

India's food safety regulator has declined to extend its 90-day deadline for beverage companies to remove "energy drink" labels from high-caffeine products, a decision that is set to disrupt the industry. The standoff pits global giants like PepsiCo, Red Bull, and Monster Beverage, along with Reliance, against the Food Safety and Standards Authority of India (FSSAI).

The regulator privately issued the directive in July, arguing that no Indian standards exist for such products and that the term breaches current regulations. Companies have sought at least one year to comply, citing millions of cans and bottles already in the market and pending orders for imported packaging.

A government source said the FSSAI will not budge, as many states have indicated existing stocks can be cleared within 60 to 90 days. The official also noted that companies have failed to provide state-wise inventory data, which is required for traceability. Industry sources counter that tallying stock across states is difficult given the sheer volume.

The dispute has escalated with state-level enforcement actions. Rajasthan recently seized thousands of units of Pepsi's Sting, Reliance's Campa Energy, and Red Bull. Authorities in Ladakh have also announced they will seize stock as part of an ongoing district-level inspection drive.

India's energy drink market has grown rapidly, with retail sales rising 12.6% annually, faster than in the US or China. Sales stood at 907 million litres last year, roughly 3 billion bottles or cans. The segment boomed after Pepsi launched Sting in 2017, with its low-priced plastic bottles proving popular among younger consumers and in rural areas.

Industry executives took their concerns to Food Processing Minister Chirag Paswan on Tuesday, seeking his support. Paswan responded on X, committing to promote "investment, innovation, and job creation" in the sector, without addressing the labelling dispute directly.

Globally, energy drinks have drawn health concerns due to high caffeine, sugar, and taurine content. England will ban their sale to under-16s from April next year.