New Delhi6 hours ago
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If you drink drinks like Red Bull, Sting and Monster in the name of energy drinks to relieve fatigue or to get instant refresh, then this is a misleading claim of the companies. India’s food safety regulator FSSAI has ordered these companies to remove this name and related claims from their products.
FSSAI has said that claims like drinking these drinks “refreshes the body and mind” or “provides instant energy” are misleading to the people. There are no standards set for such drinks in India.
Rejecting industry opposition and arguments of impact on business, FSSAI has given companies 90 days to make changes in the labels. The regulator had recently given notice to the companies.
Ban on using the word energy drink
The regulator has directed big companies like Pepsi, Red Bull, Monster Beverage for Sting, Reliance for Campa Energy and Hale Energy to completely stop using the term ‘energy drink’.
FSSAI Chief Executive Officer (CEO) Rajit Punhani rejected the companies’ arguments about losses in a meeting held on Friday. He said that if the companies wish, they can challenge the decision in the court.
Companies fear impact on brand image and sales
Pepsi’s ‘Sting’ advertisement claims to send electricity like energy running through the body, while Red Bull’s slogan “Gives you wings” is famous around the world. Companies are afraid that removing the ‘Energy’ category label will have a negative impact on their years-old brand image and sales.
Indian Beverage Association has written a letter to FSSAI saying that making such notices public harms the image of brands and creates confusion among the people. The association has demanded implementation of the rules by discussing them beforehand and in a phased manner.
Action: Strictness on seizure and e-commerce in Rajasthan
1. The ‘Energy Drinks’ market in India is growing rapidly and is expected to reach approximately ₹13,300 crore by 2028. Its sales have registered an annual increase of 100% between 2018 and 2023.
2. Rajasthan government has seized thousands of bottles of Sting, Campa Energy and Red Bull. Apart from this, e-commerce companies like Amazon, Flipkart, Blinkit and Swiggy Instamart have been asked not to promote these drinks as ‘energy drinks’.
Danger: Harmful due to high amounts of caffeine and taurine.
These drinks contain high amounts of caffeine, sugar and the amino acid ‘taurine’, which is a concern for regulators around the world.
In England, high-caffeine drinks are going to be banned for children under 16 years of age from April next year, while in some areas of Pakistan it has been made mandatory to label them as ‘stimulant drinks’.
What next: It is mandatory to change packaging in 90 days
After discussions between FSSAI and companies, the industry has agreed to implement the changes. Companies now have a deadline of 90 days to remove the term ‘energy drink’ and associated claims from their packaging, cans and bottles. After the stipulated time, the products will be sold in the market only with the new label.
