Red Bull might no longer promise to ‘give you wings’ and Monster might not ‘unleash the beast’ as their advertising states. The Food Safety and Standards Authority of India (FSSAI) this month issued notices to several beverage players for allegedly misbranding their products as energy drinks and making misleading functional claims. The public health regulator noted that no such standard exists for this category of products in the country. It has named brands such as PepsiCo’s Sting and Adrenaline Rush, Red Bull, Hell Energy Drink and Monster in its notice.
The FSSAI notice demands the removal of unapproved therapeutic claims such as “energy boost” and “improved focus” from these brands. While none of the named players made any response to the directives from the FSSAI, some industry observers have lauded the move, calling it long overdue. Ajimon Francis, MD India, Brand Finance, asserts. “It is high time the sector got regulated. These products are highly addictive and are especially popular among college students and even daily wage workers.” He refers to the high caffeine and sugar content in these drinks, which are sold at a premium compared with other soft drinks or juices in the country. A can of Red Bull or Monster Energy is sold at over Rs 100, while PepsiCo’s Sting is more affordable at Rs 20.
Francis says the FSSAI’s directive has come rather late — at a time when the category has already seen acceptance across consumer segments and rapid growth. Industry estimates put the energy drinks market at Rs 7,000 crore in 2025. That’s twice the size in 2023, when it was estimated to be around Rs 3,500 crore. Its consumer base consists of young people aged between 15 and 35 years.
According to Rutu Mody Kamdar, founder of Jigsaw Brand Consultants, the move should encourage brands in the category to put caffeine and sugar content information front and centre on their packs, specify who the drink is not meant for and then stay away from those consumers rather than quietly sell to them outside schools or colleges.
On the advertising front, she doesn’t expect the move to create a major shift in these brands’ advertising. “The category was built on price, packaging, chill and the people you hang out with while drinking it, and none of that really changes. The sensible move now is to talk about the occasion instead of the outcome,” she remarks.
Changing proposition
Experts observe that while the brands will likely comply with the FSSAI directive, the shift will change their raison d’être. They will now be compelled to pivot from selling a transformative human experience and reposition themselves as thirst quenchers, a shift that will challenge their premium pricing. Supriya M. Kalla, assistant professor, marketing at IMI Delhi, points out that this could affect brand credibility and cause significant damage to their sales performance.
To minimise the damage, she suggests these brands shift from functional to experiential claims. “The experiential playbook can give these brands a strong occupancy in the consumer’s mind. The brands can also borrow lessons from the success of brands like Coca-Cola and Pepsi by talking about taste profile and serving suggestions,” adds Kalla.
The real solution for this category, though, lies in turning disclosure into a badge of credibility. “Business credibility no longer lies in just creating a positive image. It is also about how organisations demonstrate ownership, legitimacy, creditworthiness and viability.”
This will be no easy task for the likes of Red Bull, whose ‘gives you wings’ tagline has become synonymous with extreme sports and gaming. Santosh Sreedhar, partner, Avalon Consulting, observes that globally, regulatory direction has been moving towards mandatory caffeine labelling and restrictions on marketing to younger consumers. “Indian brands should get ahead of this rather than wait for the next regulatory notice. There are many options for brands such as being honest about the equivalence of spoons of sugar or cups of coffee in each pack, or the creations of new variants low in sugar and caffeine,” he suggests.
The change in brand positioning also offers a trust-building opportunity. “Brands that are seen to move proactively on transparency fare better with regulators and consumers than those seen to be resisting scrutiny until forced to comply,” sums up Sreedhar.