Austrian beverage company Red Bull has taken legal action against India’s food regulator over a ban on using the term “energy drink” for certain high-caffeine beverages.
Red Bull filed its case in the Delhi High Court on September 25, arguing that the regulator did not follow the required legal procedure because no prior warning notice was issued. The company has also warned that the decision could affect its current and planned investments in India.
In June, India directed manufacturers of high-caffeine drinks marketed as “energy drinks” to stop using that description.
The decision has created a dispute involving major companies including Pepsi, Red Bull, Monster Beverage and Reliance, which have raised concerns that removing the category label could affect established brands and sales.
India’s energy drinks market is projected to reach $1.6 billion by 2028.
The regulatory move comes amid international concerns over beverages containing high levels of caffeine, sugar and taurine. In England, such drinks are set to be banned for people under 16 from April next year.
This marks Red Bull’s first legal challenge against the Indian regulator’s decision.
