Beverage makers face pressure to clear existing stocks and revise packaging after the regulator rejects requests for a longer compliance window
India’s food safety regulator will not extend the 90-day deadline for beverage makers to remove “energy drink” and similar descriptions from high-caffeine drinks, a government official said on Friday, leaving companies with limited time to clear existing inventories and alter packaging, Reuters reported.
The Food Safety and Standards Authority of India, or FSSAI, privately gave companies the 90-day compliance window in July, saying Indian regulations do not recognise “energy drink” as a defined category and that using the description on high-caffeine beverages breaches labelling rules.
According to report, PepsiCo, Red Bull, Monster Beverage and Reliance had sought at least a year to implement the change, citing millions of cans and bottles already in the market and pending imports.
States Report Inventories Can Be Cleared
The regulator’s decision is based in part on feedback from states that existing stocks can be sold within 60 to 90 days, according to media reports. Companies have said tracking and reconciling inventories across states is difficult because of the volumes involved.
The report said firms had not provided FSSAI with state-wise inventory details that the regulator expects them to maintain for traceability.
Seizures Add Pressure
Beverage companies are also seeking government intervention over seizures by state government authorities enforcing the labelling rules. Rajasthan last month seized thousands of bottles and cans of PepsiCo’s Sting, Reliance’s Campa Energy and Red Bull as part of an enforcement drive. The food safety office in the federally administered territory of Ladakh has also said it will seize stocks, with inspections covering products held by retailers and distributors.
Executives from PepsiCo, Red Bull and Monster raised their concerns over the labelling requirements with Food Processing Minister Chirag Paswan on Tuesday, according to media reports. Paswan said on X that his ministry was committed to promoting investment, innovation and job creation in the sector, without commenting specifically on the labelling dispute.
Fast-Growing Market
The regulatory dispute comes as India’s energy-drink market expands rapidly. Retail sales are growing 12.6 per cent annually, faster than in the US and China, according to Euromonitor estimates cited in the report. Retail sales nearly doubled annually between 2018 and 2023, while volumes reached 907 million litres last year, equivalent to more than 3 billion bottles or cans. The market surged after PepsiCo launched Sting in 2017, with its low-priced Rs 20 bottles gaining popularity among younger consumers and in rural markets, according to Euromonitor.
The products have also drawn regulatory scrutiny globally over their caffeine, sugar and taurine content. England is due to prohibit sales of energy drinks to under-16s from April next year.
(With input from agency)
