The Food Safety and Standards Authority of India’s (FSSAI) directive requiring companies to remove the term “energy drink” from product labels within 90 days has triggered widespread disruption across the beverage supply chain, with distributors reportedly refusing to accept existing stocks, leading to shortages of several leading brands at retail outlets.
Industry executives said the regulator’s July 2 order has created uncertainty for manufacturers and distributors alike, affecting brands such as Red Bull, PepsiCo’s Sting, Monster, Hell Energy, Reliance Consumer Products’ Campa Energy and Coca-Cola’s Thums Up Charged. FSSAI has maintained that India does not have a notified standard for an “energy drink” category and has objected to labelling and marketing claims associated with the products.
According to industry sources, distributors across several states have halted procurement of products carrying the existing labels, while some state food safety authorities have reportedly begun seizing stocks from distributor warehouses, even though the 90-day compliance period is still underway.
“The fate of the category hangs in the balance as distributors are unwilling to pick up existing inventories,” said an executive at a leading energy drink manufacturer. The executive added that thousands of imported beverage cans bearing the “energy drink” label remain stranded in transit through the Strait of Hormuz, raising concerns over potential inventory losses.
The Indian energy drink market, estimated at around ₹13,000 crore, has been one of the fastest-growing beverage segments, expanding at an annual rate of 20–25%, driven largely by rising demand among younger consumers.
Industry bodies have urged the regulator to reconsider the implementation timeline. In a letter to FSSAI Chief Executive Officer Rajit Punhani, the Indian Beverage Association (IBA) requested prior industry consultation and an opportunity for stakeholder representation before enforcement of the directive. The association argued that the existing standards had been developed after years of scientific risk assessments, expert recommendations and stakeholder consultations.
However, industry executives said FSSAI has declined requests to extend the compliance deadline.
In its July directive, the regulator instructed food businesses to discontinue the use of the term “energy drink” as well as claims such as “boosts energy” and “vitalises body and mind”, stating that such descriptions could mislead consumers in the absence of a legally recognised product category under India’s food standards.