Reliance Consumer Products has received temporary relief from the Delhi High Court in its dispute with the Food Safety and Standards Authority of India (FSSAI) over the use of the term “energy drink” on its Campa beverages.
The court on October 6 allowed Reliance to continue marketing its Campa products as “energy drinks” while the company challenges an FSSAI directive that sought to prevent manufacturers of high-caffeine beverages from using the description.
The court has also put on hold the regulator’s order affecting PepsiCo and Monster Beverage, according to a lawyer present during the hearing. Both companies have challenged the FSSAI directive in court.
Why FSSAI Challenged the Label
The dispute began with an FSSAI order issued on June 30 directing manufacturers of high-caffeine beverages to stop using the term “energy drink”. The regulator’s position is that the description could potentially mislead consumers and that such product claims must have proper legal support.
Reliance approached the Delhi High Court after the order disrupted its operations and raised concerns over large quantities of existing stock and printed packaging carrying the disputed label.
During Tuesday’s hearing, the court questioned why FSSAI had not issued Reliance a notice before taking action against the company. The court indicated that the regulator could still correct the issue.
Reliance Says Large Inventory Is at Risk
Reliance told the court that it had finished inventory consisting of around 168 million cans and 120 million plastic bottles carrying the “Energy Drink” label.
The company also said it had pre-printed packaging for another 400 million cans and 360 million bottles with the same description.
According to Reliance’s filing, the FSSAI action had already affected its business, with some stock seized by state authorities and e-commerce platforms being asked to remove the affected products from their listings.
PepsiCo and Monster Also Challenge FSSAI
PepsiCo and Monster Beverage have separately approached the Delhi High Court against the June 30 directive. Their cases are also expected to be heard by the court.
Red Bull has already received court relief allowing it to continue using the “energy drink” designation.
The dispute could have wider implications for the Indian beverage industry, particularly for companies selling high-caffeine drinks and the way such products are labelled and marketed.
For Reliance, the latest court order provides temporary relief from an immediate labelling restriction. However, the broader dispute between the beverage companies and FSSAI remains unresolved.
The matter is scheduled to return before the Delhi High Court on November 5.
