An Indian court quashed a regulatory order. The order had prohibited beverage companies from using the "energy drink" term on products. Red Bull filed the case against the Food Safety and Standards Authority of India (FSSAI). The decision also provides relief for Monster Beverage, PepsiCo, and Reliance.
The Delhi High Court set aside the FSSAI's directive on procedural grounds. The court stated the regulator acted without giving Red Bull an opportunity to be heard. The FSSAI had ordered companies in June to drop the label. This created market uncertainty. The market is projected to reach $1.6 billion by 2028.
The court did not rule on the merits of using the "energy drink" term. The regulator can still pursue the issue after following due process. The FSSAI plans to appeal the decision on public health grounds.