NEW DELHI — Austrian beverage major Red Bull has filed a petition in the Delhi High Court challenging a regulatory directive by the Food Safety and Standards Authority of India (FSSAI) that prohibits manufacturers from using the term “energy drink” for high-caffeine beverages.
The company has contended that the sudden restriction—issued without prior notice or due procedural process—has created severe regulatory uncertainty, effectively halting its business operations and threatening existing and planned investments in India.
Key Highlights & Legal Arguments
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Procedural Challenge: Red Bull argued before the court that FSSAI imposed the “abrupt prohibition” without issuing a prior show-cause notice or affording beverage companies a fair hearing.
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Global Terminology & Standards: The beverage major highlighted that “energy drink” is an established, globally recognized product descriptor, noting that regulators made no corresponding modification to underlying product safety standards to justify banning the label.
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Wider Sectoral Impact: The regulatory order follows a June directive instructing major players—including Red Bull, PepsiCo, and Monster—to cease using the descriptor amid an intensified food-safety enforcement drive in India.
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Economic & Investment Concerns: Red Bull stated that the restriction contradicts the government’s policy on ease of doing business and international trade, severely disrupting supply chains and commercial operations nationwide.
