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FSSAI gives high-caffeine drink brands 90 days to remove ‘energy drink’ labels

Our read

Energy-drink relabeling will become a retail reset: big brands preserve demand, but fragmented enforcement reshapes e-commerce visibility and shelf space.

For operators

Begin a 90-day cross-channel compliance sprint to replace “energy drink” packaging, update e-commerce listings and shelf signage, and prevent enforcement-led delistings, starting with Rajasthan.

Watch

FSSAI clarification on acceptable replacement terminology, label language, caffeine-warning format, and treatment of existing inventory.

Ask next

The report,

FSSAI has ordered high-caffeine beverage makers to remove 'energy drink' claims from labels, affecting Pepsi, Red Bull, Monster and Reliance. Companies have 90 days to comply, while Rajasthan has begun enforcement and restricted e-commerce promotion.

Reported figures

From the report. Source details below

Energy drinks market projected at $1.6 billion by 2028
Sales volumes nearly doubled annually between 2018 and 2023

Also in the report

  • 12.6% projected annual growth

Why it matters for the brand

Build FSSAI labeling exposure, reformulation capability, packaging-change costs and state-level enforcement risk into beverage target diligence and valuation assumptions.

What to track next

  • Additional state enforcement notices, especially in large consumption markets and states with active food-safety inspections.
  • Amazon, Flipkart, quick-commerce, and grocery-platform changes to product titles, advertising eligibility, age gates, or category placement.
  • Retailer requests for supplier indemnities, compliance certificates, revised barcodes, or new product-master data.
  • Any move from terminology enforcement toward caffeine thresholds, serving-size caps, warning-label requirements, or restrictions on marketing to minors.
  • Sales shifts from high-caffeine cans toward sports drinks, flavored water, cold coffee, energy shots, and lower-caffeine functional beverages.

Likely next moves

Our read of what comes next — analysis, not reported by the source.

  • Audit all packaging, product titles, marketplace listings, search keywords, shelf tags, and retailer catalog taxonomy for prohibited 'energy drink' language.
  • Prioritize Rajasthan inventory segregation and retailer communication to avoid enforcement-led delistings or blocked e-commerce promotions.
  • Create replacement consumer messaging around taste, refreshment, performance, electrolytes, vitamins, or caffeine disclosure without making non-compliant health or energy claims.
  • Prepare dual inventory plans: compliant packs for new dispatches and controlled sell-through, withdrawal, or relabeling procedures for legacy stock.
  • Retailers should create a compliant caffeinated-beverages category rather than rely on legacy energy-drink navigation, planograms, and promotional filters.
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  • Monitor whether competitors use the transition to gain shelf space through lower-caffeine, hydration, sports-drink, coffee, or functional-beverage positioning.

The counter-case

The case against this reading — not reported by the source.

The headline may overstate the commercial disruption. A 90-day relabelling window is manageable for large beverage companies with established packaging and compliance operations, and a shift from “energy drink” to a compliant descriptor may have limited effect on consumer demand, which is driven more by caffeine, taste, price and brand recognition than category wording. Enforcement could also remain state-specific and uneven, while retailers may continue selling existing inventory under transition provisions. Rajasthan’s e-commerce restrictions may not translate into a durable nationwide merchandising constraint.

The source

Source Read the source at Mint

Published

Also reported by The Hindu BusinessLine

First seen