Reliance Consumer Products challenges the food regulator’s order in court, arguing that the crackdown has disrupted Campa’s business as India’s rapidly expanding energy drinks market comes under tighter scrutiny

Reliance Industries has taken legal action against India’s food safety regulator, challenging an order that prevents its beverage business from marketing Campa products using the term “energy drink”. The move escalates a growing dispute between India’s food regulator and some of the country’s largest beverage companies over how high-caffeine drinks can be branded and marketed.

Reliance Consumer Products, the consumer-facing arm of Mukesh Ambani-led Reliance Industries, filed a writ petition dated October 1 seeking to quash the Food Safety and Standards Authority of India’s (FSSAI) June 30 directive. The petition was reviewed by Reuters and argues that regulatory action has caused significant disruption to the company’s operations and affected the commercial standing of its Campa beverage business. Reuters

FSSAI Cracks Down on ‘Energy Drink’ Labelling

The dispute stems from FSSAI’s decision to prohibit manufacturers of high-caffeine beverages from describing their products as “energy drinks”. The regulator has maintained that India does not have a notified standard specifically defining an “energy drink” category and has objected to the use of the term and associated functional claims on product packaging and marketing material.

In July, FSSAI issued notices to six major beverage brands, including Reliance Consumer Products’ Campa Energy Drink Gold Boost, PepsiCo’s Adrenaline Rush and Sting, Red Bull, Monster Energy and Hell Energy. The regulator said the products were being marketed using descriptors that could amount to misbranding or misleading claims. The New Indian Express

The regulator has also raised concerns about claims suggesting that such products can boost energy, improve focus or provide other functional benefits. Companies were subsequently given a 90-day period to comply with the direction.

Reliance Says Enforcement Has Hit Campa’s Business

Reliance’s court petition highlights the commercial consequences of the regulatory action. According to the filing, state authorities have seized some of the company’s stock, while e-commerce platforms have been directed to remove or delist affected products.

Reliance has argued that these actions have disrupted its business operations and affected the market presence and commercial goodwill associated with its beverage products.

The issue is particularly significant for Reliance because Campa has become an important part of the company’s strategy to build a large consumer-products business. Reliance revived the Campa brand in 2023 and has used its extensive retail distribution network and competitive pricing to challenge established beverage companies such as Coca-Cola and PepsiCo.

PepsiCo and Monster Have Also Gone to Court

Reliance is not the only major beverage company challenging the regulator’s decision.

PepsiCo and Monster Beverage filed legal challenges against the FSSAI last week, arguing that the restrictions could have a substantial impact on their businesses. PepsiCo has pointed to the scale of products already in circulation, while Monster has raised concerns about financial and reputational consequences.

The companies have also questioned the regulatory process surrounding the decision and its implementation. Reuters

The legal challenges could therefore result in a broader judicial examination of how FSSAI can regulate product descriptions, labelling practices and marketing claims in a rapidly evolving beverage category.

Red Bull Gets Relief From Delhi High Court

The dispute gained additional momentum after the Delhi High Court recently provided relief to Red Bull.

The court set aside the FSSAI order directing Red Bull to stop using the “energy drink” description, holding that the company had not been given an adequate opportunity to present its case before the regulatory action was taken. FSSAI retains the ability to reconsider the matter, but would need to follow due process, including giving the company an opportunity to respond. Reuters

The ruling could become an important reference point for other beverage companies challenging similar regulatory orders.

A Fast-Growing Market at Stake

The regulatory battle comes at a crucial time for India’s energy beverage industry. The segment has expanded rapidly in recent years, with younger consumers, urban demand and increasing penetration in smaller cities and rural markets supporting growth.

According to Euromonitor data cited by Reuters, India’s energy drinks market is growing at around 12.6% annually, faster than the corresponding growth rates in the United States and China. The market is projected to reach around $1.6 billion by 2028. Reuters

For companies, the dispute is therefore about more than simply changing wording on a can or bottle. The “energy drink” description has become closely associated with a distinct product category, and removing it could affect consumer recognition, marketing campaigns, shelf positioning and online visibility.

Reliance’s Consumer Ambitions Face a New Test

For Reliance, the regulatory dispute comes as the company continues to build its consumer-products portfolio and challenge multinational FMCG and beverage companies.

Campa has been positioned as a value-driven challenger brand, with Reliance leveraging its retail ecosystem and distribution capabilities to increase its reach. The company’s entry into the energy beverage segment has intensified competition in a category traditionally dominated by international brands.

The FSSAI action could therefore force Reliance to reassess the positioning, packaging and marketing of Campa products while the legal proceedings continue.

Regulatory Pressure on Beverage Companies Intensifies

The dispute reflects a wider shift towards stricter scrutiny of food and beverage products in India. FSSAI has stepped up action against what it considers misleading labelling, health claims and marketing practices across the food industry.

For beverage manufacturers, the challenge is to comply with regulatory requirements without weakening established brands or confusing consumers.

The companies, meanwhile, are seeking judicial intervention to protect their commercial interests and challenge what they consider an inappropriate regulatory approach.

What Happens Next

Reliance’s petition now adds another major corporate challenge to FSSAI’s “energy drink” crackdown. With PepsiCo and Monster also pursuing legal remedies and Red Bull having already obtained court relief, the courts could play a decisive role in determining how the category is regulated.

The outcome could have implications across India’s beverage industry, particularly for companies whose products, packaging and marketing strategies have been built around the “energy drink” identity.

For Reliance, the immediate priority will be protecting Campa’s distribution and market positioning while the legal battle unfolds. For FSSAI, the challenge will be balancing consumer protection and regulatory clarity with due process and the commercial realities of a rapidly expanding beverage market.