Reliance challenges FSSAI order barring Campa from using ‘energy drink’ label

NEW DELHI: Campa is getting into a legal fizz-up. Reliance Consumer Products Ltd has sued India’s food safety regulator after it barred the company from marketing its Campa-brand beverages as “energy drinks”, escalating a wider industry battle over how high-caffeine products are labelled.

The writ petition, dated 1 October and reviewed by Reuters, has been filed by Reliance Consumer Products Ltd, the beverages arm of the conglomerate led by Mukesh Ambani. It challenges a 30 June order issued by the Food Safety and Standards Authority of India (FSSAI). The regulator directed manufacturers of high-caffeine beverages being sold as “energy drinks” to stop using the description.

The move puts Reliance Consumer Products Ltd alongside several major beverage companies that are contesting the regulatory action in court. PepsiCo and Monster Beverage have also challenged the regulator’s order, while Red Bull has secured interim relief allowing it to continue using the “energy drink” label.

For Reliance, the dispute comes at a crucial point in its push to build Campa into a major beverage brand. The group, led by Mukesh Ambani, revived the Campa brand in 2023 and has used its extensive retail footprint and competitive pricing to take on established players such as Coca-Cola and PepsiCo.

The labelling restrictions could complicate that expansion, particularly in India’s rapidly growing energy drinks segment. Retail sales of energy drinks in the country are growing at an annual rate of 12.6 per cent, according to Euromonitor, faster than the corresponding markets in the US and China.

Reliance’s petition says the regulatory action has already had a direct impact on its business. According to the filing, state authorities have seized stocks of its products, while e-commerce platforms have been directed to remove the beverages from their listings.

“Such actions have caused and are causing substantial disruption to the Petitioner’s business operations and adversely affect its market presence and commercial goodwill,” Reliance Consumer Products Ltd said in the petition.

The company is seeking to have FSSAI’s 30 June order quashed, arguing that the restrictions have disrupted the sale and positioning of its products.

FSSAI did not immediately respond to a request for comment.

The dispute is unfolding against the backdrop of a broader food-safety drive across India this year. Authorities have stepped up inspections and enforcement action, including raids and shutdowns, while introducing tighter requirements around warnings and product labelling. High-caffeine beverages have come under particular scrutiny because of concerns over their potential health effects.

The Campa case also highlights the stakes for beverage companies trying to expand in India’s fast-growing market. For Reliance, which has been steadily building its consumer business across retail and fast-moving consumer goods, the ability to position Campa products clearly could be important as it takes on multinational beverage giants.

With multiple major players now challenging the labelling restrictions, the courts are likely to play a significant role in determining how India’s energy drinks market can market and describe its products. For Campa, the fight is no longer just about fizz and shelf space, but about what can legally appear on the label.