The Delhi High Court on Tuesday set aside a Food Safety and Standards Authority of India (FSSAI) order that barred Red Bull from describing its caffeinated beverage as an “energy drink”, ruling that the company was not given a proper opportunity to present its response before the directive was issued.
Justice Amit Mahajan allowed Red Bull’s petition challenging the regulator’s June 30 order on the limited issue of violation of natural justice principles.
The court observed that FSSAI had issued the direction without providing the company an opportunity to submit a reply or explanation.
“It remains undisputed that the order dated 30th June, 2026 directing the petitioner to not use the term ‘energy drink’ in its product was passed without affording any opportunity to the petitioner to file any reply or give any explanation,” the court said.
Court asks FSSAI to reconsider after hearing Red Bull
The court clarified that it had not decided whether Red Bull can ultimately continue using the “Energy Drink” description on its products. Instead, it directed FSSAI to examine the issue again after issuing a show-cause notice and allowing the company to respond.
Red Bull had approached the High Court challenging both the June 30 order and a subsequent July 17 communication sent to food safety authorities. The company argued that it had used the “energy drink” label in India since 2002 and that previous regulatory guidance permitted the terminology for certain caffeinated beverages.
During the hearing, FSSAI argued that Red Bull had submitted representations and participated in discussions with the regulator. The authority said the company had agreed to make changes within 60 days.
Regulatory dispute over caffeinated beverage category
The High Court, however, held that later discussions could not replace the requirement of giving the company an opportunity to respond before issuing the original order. It subsequently quashed the directive.
The dispute began after FSSAI directed manufacturers of high-caffeine beverages to stop using the term “energy drink”, rejecting attempts to delay implementation of the move.
Red Bull’s India unit had earlier stated that the sudden restriction on the label, without any change in product standards, created regulatory uncertainty and affected existing and planned investments.
The court’s order leaves the broader question of whether Red Bull can continue using the “energy drink” descriptor open for FSSAI’s fresh consideration.
