The Delhi High Court on Tuesday, September 29, 2026, struck down a FSSAI order to stop Red Bull from using the name "Energy Drink" on its products.
Justice Amit Mahajan held that the regulator violated the doctrine of natural justice in passing the order on June 30 without hearing Red Bull's side of the story. The order is limited in scope to the violation of natural justice and does not address the main issue of whether Red Bull is permitted to call its drinks an "energy drink."
The verdict was very narrow and strictly procedural. "Petition is allowed. The impugned order is hereby set aside. Respondent is hereby permitted to make a new order after hearing the petitioner," the Court dictated in the order.
"Undoubtedly, in the instant case, the order dated June 30 made by FSSAI had been made without affording an opportunity to the party concerned (Red Bull) to file his reply," wrote Justice Mahajan. The order was set aside by the court due to this procedural irregularity; however, the freedom to make a fresh decision after following proper procedure was explicitly reserved for FSSAI.
The origin of the controversy is linked to the order issued on June 30, 2026, by an FSSAI Assistant Director that the Red Bull Company had to stop labeling their products as 'Energy Drink.'
Furthermore, the Red Bull Company protested against another communication issued by the FSSAI on July 17, which called upon the food safety authorities in all states and union territories to act against the products that did not adhere to the labeling regulations.
FSSAI argued before the court that there was no need for issuing any separate show cause notice, as the very letter issued on June 30 acted as the necessary notice.
Moreover, FSSAI sought to restrict the ambit of its decision by making it clear that its objection was confined only to the use of the term "energy drink," and it had nothing to do with the product itself.
FSSAI argued before the court that there was no need for issuing any separate show cause notice, as the very letter issued on June 30 acted as the necessary notice.
Moreover, FSSAI sought to restrict the ambit of its decision by making it clear that its objection was confined only to the use of the term "energy drink," and it had nothing to do with the product itself.
Since the order dated June 30 has been quashed, Red Bull is free to use the descriptor “Energy Drink” in its labeling until such time that a decision is reached as to whether the descriptor would be valid under India’s food labeling laws. This decision by the court simply means that FSSAI could not impose a ban without going through due process.
It still has the option to serve another show-cause notice and make another order on the very same issue.
This controversy is part of a wider regulatory initiative. In June, India took steps to force producers of energy drinks containing higher levels of caffeine to discontinue labeling their products with such terms, estimating their market size at a valuation of $1.6 billion by 2028.
This order, according to reports, sparked a conflict between several leading companies manufacturing beverages – PepsiCo, Red Bull, Monster Beverages, and Reliance Industries (owned by billionaire Mukesh Ambani), who feared that the removal of the "energy drink" classification would harm their brand image built over the years.
Whether the use of the term "energy drink" would be an allowable description within the context of India's food safety and labeling law is still unknown. The decision made on Tuesday dealt with only the procedure used by FSSAI, but not with the issues themselves.
Moreover, it is not known when FSSAI will release another show-cause notice, and how it will approach the matter of labeling of the whole industry following its June directive.
The FSSAI will be required to decide whether to reconsider its earlier decision through issuance of a show cause notice to Red Bull regarding the use of the label "Energy Drink."
Considering that there is an ongoing industry controversy related to PepsiCo, Monster Beverage and Reliance, FSSAI's next step with respect to Red Bull will be keenly observed by many as an indication of how the regulator plans to proceed with the other brands.
