Laws, Procedures & Rules for Energy Drink Manufacturing Companies in India | FMCG Lawyer in Delhi NCR | FMCG Lawyer in Gurugram | FMCG Lawyer in Noida |

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The Energy Drink industry began operating all over the world in the 1980’s, and ever since, has been the preferred choice for anyone looking for a temporary surge in energy and physical adrenaline. Energy drinks initially began evolving when the brands Pepsi and Coca-cola began selling their products to the market. Interestingly, Coca-cola’s name was sourced from two of its primary ingredients, namely coca leaves and kola nuts, which were both energy stimulants. One thing that was out of place when it came to Coca-cola was that it was very high in caffeine content, and this was in violation of the Pure Food and Drug Act in the USA, back in the 1900’s. Eventually, a federal lawsuit was filed against Coca-cola in the case of United States v. Forty Barrels and Twenty Kegs of Coca-cola 241 U.S. 265 (1916), which led to the company reducing the composition of caffeine in their formula by 1916. Similarly, when it comes to setting up a company dealing in energy drinks, certain compliances, apart from the usual compliances under the Companies Act, 2013, have to be followed.

In India, the main regulating authority when it comes to energy drinks is the Food Safety Standards Authority of India (FSSAI). In the recent years, a variety of different energy drinks have been introduced in the market, and do contain high levels of caffeine which help in stimulating the nervous system. But these levels have to be in conformity with the rules and guidelines of the FSSAI in the first place. With a gradually increasing trend in the day-to-day consumption of energy drinks, the FSSAI came up with the Food Safety & Standards Regulations, 2011.

For the energy drink product to be in conformity with the aforementioned rules, it is necessary that the following points are complied with:

1. The maximum caffeine content should not be within the range of 145 and 300mg/litre. The limits for Taurine and Inositol, which can be found in energy drinks have been set as well.
2. The product should pass the Audit and Hazard analysis which has been mandated by the FSSAI.
3. If the energy drink contains fruit content of any sort, it is necessary that a declaration about the same is made on the label of the product.
4. There are also certain microbiological standards which need to be followed whereby the total soluble solid should not exceed 10%, and the fruit content standards where the total content of lime juice should not exceed 5%, and other fruits not exceeding the limit of 10%.

There are also certain packaging and labelling requirements laid down by the FSSAI for getting a grant of the food license which have been listed down as follows:

1. The material used to manufacture the plastic bottles must primarily comprise of polycarbonate and polyethylene terephthalate (PET).
2. For the 5 litre bottle, the packaging must contain blue tint.
3. The above bottles must be in compliance with the Indian Standard, i.e., IS 9833. Furthermore, according to the IS:9845 regulations, the total amount of pigment or colour in the bottle should not exceed the limit of 60 mg/litre.

Lastly, it’s a huge misnomer that these energy drinks are actually energy drinks, and in order to make the public aware about the same, the FSSAI made it mandatory that the ‘energy’ tag must be removed from the product, and the company must have to use the tag ‘caffeinated beverage’ for selling such a product. In the case of Red Bull AG v. C. Eswari and Ors., CS (COMM) 1062 of 2018, the suit was instituted by the plaintiff for permanent injunction, declaration, and restraining the infringement of Trade Marks by the defendants for using the impugned Double Bull image forming a part of the impugned logo, which bore a deceptive similarity to the same. The Hon’ble High Court of Delhi in this case, ruled in favour of the plaintiff, and held that the plaintiff is entitled to costs.

Thus, there exists straight set of laws and rules which regulate the manufacturing of energy drinks in India.
Authored By: Adv. Anant Sharma & Abhijith Christopher