The Delhi High Court on Tuesday allowed the Reliance-owned Campa Cola to continue to be marketed with the “energy drink” label. The company’s beverage-making vertical had claimed that the label ban from The Food Safety and Standards Authority of India (FSSAI) had significantly affected its business.
The food safety regulator had issued an order on June 30, which had prevented the manufacturers of high-caffeine beverages from selling the products with the “energy drink” title and provided them with a 90-day compliance period to remove the description. FSSAI said the label misled consumers into thinking high-caffeine, sugary drinks had health benefits.
The order faced backlash from major companies including PepsiCo and Monster, which sued the food safety regulator last week. The companies argued they were never given a fair hearing or opportunity to present their case before the regulator issued the order.
According to Reuters, in the writ petition filed by Reliance in October, the state authorities seized the company’s stock and also ordered e-commerce platforms to take down the products. The company said it holds finished inventory of 168 million cans and 120 million plastic bottles, as well as printed packaging for 400 million cans and 360 million bottles that bear the labelling.
A statement from the company’s filing said, "Such actions have caused and are causing substantial disruption to the Petitioner's business operations and adversely affect its market presence and commercial goodwill.”
PepsiCo also claimed that several Indian states began seizing its products straight away. Monster’s non-public court filing reportedly said that the company is “suffering grave financial loss and reputational harm.”
The Delhi High Court questioned FSSAI, telling the regulator it was “never too late” to issue a notice before passing the order. The Court granted relief to Reliance. Red Bull had already obtained temporary court relief, allowing it to continue using the “energy drink” label.
The energy drink market in India is growing, with drink retail sales in the country expanding at 12.6 per cent, surpassing both China and the US. The market has been highly competitive since 2023, when Campa Cola entered with extremely low pricing to challenge Coca-Cola and PepsiCo.
