Reliance Industries 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 products sold under its Campa beverage brand.
The court has allowed Reliance Consumer Products to continue using the “energy drink” description for its affected products while the legal proceedings continue.
Dispute Over FSSAI Direction
The case follows an order issued by FSSAI on June 30 directing manufacturers of certain high-caffeine beverages marketed as “energy drinks” to stop using the designation.
Reliance approached the Delhi High Court this month, arguing that the regulatory action had caused significant disruption to its business.
During Tuesday’s hearing, the court questioned FSSAI on why Reliance had not been given a notice before the order was issued. The court indicated that the regulator could still address the procedural issue.
The matter is scheduled for its next hearing on November 5.
Large Campa Inventory At Risk
According to Reliance Consumer Products’ court filing, the company has substantial stocks and packaging carrying the “Energy Drink” label.
The company reported having around 168 million cans and 120 million plastic bottles of finished inventory, along with packaging material for approximately 400 million cans and 360 million bottles.
Reliance also stated that some state authorities had seized its products and that e-commerce platforms had been instructed to remove the affected beverages from their listings.
The company said these actions had created substantial disruption to its operations.
Wider Industry Dispute
Reliance is not the only beverage company challenging FSSAI’s position on the “energy drink” classification.
Red Bull recently obtained court relief allowing it to continue using the designation, while PepsiCo and Monster Beverage have also initiated legal proceedings against the regulator over the issue.
The developments could have wider implications for India’s growing functional and energy beverage sector, particularly for companies whose product packaging and marketing rely on the “energy drink” description.
Campa Expands Its Beverage Ambitions
Reliance brought the Campa brand back to the Indian market in 2023 and has been using its extensive retail network and competitive pricing to expand its presence in the beverage industry.
The company is increasingly competing with established players such as Coca-Cola and PepsiCo across India’s soft drink and energy beverage markets.
The ongoing court proceedings will determine how the regulatory restrictions affect Reliance’s Campa products and the broader industry’s use of the “energy drink” label.
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