May 14, 2015

Food regulator orders recall of Hector beverages' Tzinga, terms it 'unsafe'

The Food Safety & Standards Authority of India has made a rare and strong move in getting energy drink brand Tzinga recalled, terming it 'unsafe'. 

NEW DELHI: In a rare move, India's food quality regulator has ordered recall of Tzingaenergy drink of Hector Beverages, maker of Paper Boat drinks, saying it's 'unsafe'. 
"You are directed to recall all the existing products (under Tzinga) from market under intimation to FSSAI as the same has been declared unsafe," the Food Safety & Standards Authority of India (FSSAI) wrote to Hector Beverages in a letter dated May 12. 
This is a rare case when the food authority has directed a company to entirely withdraw its products. So far, it has mainly directed firms to either change formulations or labelling on their packs. A Hector Beverages spokesperson, in an email response to ET's query, said, "We acknowledge notice from FSSAI on May 13, 2015. We understand that Tzinga is one among the few other energy drinks companies to which the notice has been issued." The food regulator has also directed two other smaller players — Pune-based firm Pushpam Food & Beverages, which makes Cloud 9 energy drink, and Chennai-based firm Akoaroma, which makes flavoured water — to recall their respective products. 
Both these firms could not be reached for comments. 
ET has reviewed copies of all three letters sent on Tuesday. Tzinga sells in three flavours: Lemon Mint, Tropical Trip and MangoStrawberry. "As a responsible company, we will cooperate and immediately comply with the notice. Simultaneously, we are internally investigating this matter and will aim to address this at the earliest," the Hector Beverages spokesperson said. 
Technically, the firm can contest FSSAI's order in a court. Hector Beverages makes the popular Paper Boat range, which has made its niche in the readyto-drink segment dominated by fizzy drinks, by selling ethnic beverages such as aamras, aam pannaand jaljeera.Set up by former Coca-Cola officials Neeraj Kakkar and Neeraj Biyani, Hector's first product was Tzinga. 
The firm is backed by Sequoia and Catamaran Ventures. Three years ago, FSSAI had directed all energy drinks makers to stop using the word 'energy' on their labels, and instead call them 'caffeinated beverages'. Drinks are also supposed to carry a statutory warning of 'high caffeine content' label, in addition to directive on the label - 'not recommended for children, pregnant women, persons sensitive to caffeine and sportspersons'. 
The energy drinks market in the country, growing at over 30% annually, is dominated by Austrian firm Red Bull with over 70% share. Besides Tzinga and Cloud 9, other players include Coca-Cola's Burn. Industry reports peg the energy drinks market at Rs 700 crore, which is niche compared to the mass Rs 14,000-crore soft drinks category. 
Last month, Hector Beverages had inked a tie-up with Indo Nissin, maker of Top Ramen noodles, for distributing its beverages across general trade stores. The two companies had announced the exclusive distribution partnership, which, they said, would specially help to increase Hector's penetration in smaller, tier-II markets.

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