energy drink
The food regulator has set a deadline of 90 days to remove the “energy drinks” label from packets. This has caused panic among distributors across the country and they have refused to take the existing stock of energy drinks from the companies. There is a shortage of dozens of brands like Red Bull, PepsiCo’s Sting, Monster, Hell, Campa Energy and Coca-Cola’s Thums Up Charged at retail stores. According to the ET report, executives say that this matter has become a cause of conflict between FSSAI and the companies. The regulator has alleged violation of rules related to product name and labeling and said that it does not recognize any such category.
stock will become useless
An executive of a big energy drinks manufacturing company said in a media report that the future of this category hangs in the balance. Many distributors are not picking up the existing stock from the companies. Additionally, thousands of cans labeled “energy drinks” are also stranded in the Strait of Hormuz. In fact most of the cans are imported from West Asia, they will all go to waste. Amid the regulator’s order to remove labels, many people have refused to take existing stock from the companies. Although the companies had sought an extension of the 90-day deadline, the country’s food regulator Food Safety and Standards Authority of India (FSSAI) – which had issued the directive on July 2 – has refused to accept it.
Annual market of Rs 13 thousand crores
India’s energy drinks market, whose annual sales are estimated at Rs 13,000 crore, is growing rapidly. Due to its increasing popularity especially among young customers, its sales are increasing at the rate of 20-25 percent. Two other executives said FDA officials from different states have started seizing stocks from distributor warehouses, although the directive is not yet fully implemented. However, no official statement has come from Red Bull, PepsiCo, Reliance and Coca-Cola. Meanwhile, the executives of Monster and Hell Energy Drinks are also sitting quietly.
IBA wrote letter to FSSAI
In a recent letter to FSSAI CEO Rajit Punhani, Indian Beverage Association (IBA) Secretary General Gunveena Chadha urged the regulator to give ‘the industry an opportunity to interact and present its views’ before implementing the new directive. Chadha’s letter also said that “these standards were published after several years of deliberations, including risk assessment, interactions with multiple stakeholders and recommendations of an expert group. In July, FSSAI directed companies to stop using the term “energy drink” on such products. FSSAI said there is no set standard for the “energy drink” category in India and the label Claims like “revitalizing body and mind” or “increasing energy” may be misleading to consumers.
