Ban on energy drinks forces makers to go for a remix

Food regulator against ginseng being used with caffeine in such beverages

MUMBAI, 

What’s in a name? A lot, says Ramesh Chauhan. The Bisleri International Chairman is playing it safe by positioning his company’s latest beverage, Urzza, as a ‘liquid charger’ rather than an energy drink. Urzza is derived from the Hindi word Urja, which means energy, yet Chauhan, who received clearance from the food regulator after many months, is giving the energy label a wide berth.

With good reason; in the past couple of months the ₹200 crore energy drink category has come under the lens of the Food Safety and Standards Authority of India, which has imposed a ban on brands such as Monster, Restless, Cloud 9 and Tzinga.

The makers of these energy drinks have halted production to reformulate their respective brands, and are waiting for the regulator’s nod to put their products back on shop shelves.

“The FSSAI is objecting to the combination of ginseng with caffeine in energy drinks. In our case, we are not using caffeine and have positioned Urzza as a liquid charger and not as an energy drink,” explains Chauhan.

Other domestic players have not been able to skirt the ban. For instance, Mumbai-based KG Beverages, which makes the Restless Action brand, has to apply for a fresh licence.

“This is the third time that we have been made to change the formula. Using herbs like ginseng along with caffeine, which is a chemical, is not being favoured by the FSSAI. But the same combination … is commonly used in other markets like the US and the UK,” says Nitin Gupta, MD of KG Functional Beverages.

Even start-up Hector Beverages, which makes the Tzinga brand, has re-formulated its energy drink. “We have replaced the herb ginseng but despite this, we are still waiting to hear from the FSSAI,” says Neeraj Kakkar, CEO, Hector Beverages.

Even imported brands such as Monster, which is distributed by the Narang Group (the erstwhile distributor of the Red Bull energy drink) have been banned by the FSSAI.

This has allowed Red Bull, which does not have ginseng in its drinks, to dominate the category and hike its price from ₹95 to ₹99 for 250 ml, capitalising on its almost monopolistic position.