NEW DELHI — The Delhi High Court has quashed an order by India’s food regulator directing Red Bull to stop using the term “energy drink” on its cans, ruling that the company was not given an opportunity to present its case before the decision was made.
The court set aside the Food Safety and Standards Authority of India’s June 30 directive, which had required manufacturers of high-caffeine beverages marketed as energy drinks to remove the category description from their products. Justice Amit Mahajan found that the order violated principles of natural justice because Red Bull had not been issued a prior show-cause notice or heard before the restriction was imposed.
The ruling gives Red Bull immediate relief in India’s fast-growing energy-drinks market, projected to be worth about US$1.6 billion by 2028. The June order had also concerned major companies including PepsiCo, Monster Beverage and Reliance, which feared that removing the term could weaken brands built around energy-related marketing.
Red Bull had argued that the abrupt ban created regulatory uncertainty and affected its current and planned investments in India, particularly as there had been no change in the underlying product standards. The court did not rule permanently on whether the descriptor is legally permissible; it allowed FSSAI to reconsider the matter and issue a fresh order after giving Red Bull a fair hearing.