NEW DELHI/BANGALORE — With increasing scrutiny from regulators, consumer goods companies in India are facing mounting pressure to revise their marketing strategies and product labeling. Items ranging from atta and paneer to whisky and energy drinks are now under regulatory microscope,as the Food Safety and Standards Authority of India (FSSAI) intensifies its enforcement of existing standards .
The recent regulatory actions are not result of new laws but rather the implementation of guidelines established years ago . This shift has been facilitated by enhanced testing capabilities,leading to stricter compliance checks. Former FSSAI chief executive Pawan Agarwal noted that when he joined the organization in 2016, only 10-15% of regulatory framework was operational. By the time he departed in 2020, that figure had risen to nearly 90%.
“We are now seeing those regulations being implemented as the country’s food regulatory ecosystem evolves,” Agarwal stated . He emphasized that the law has long contained provisions against misleading claims,which are now being actively enforced. For instance,terms like 'energy' or phrases such as '100% pure' are under scrutiny,particularly in the context of products aimed at children, like energy drinks.
As consumer behavior shifts, companies are feeling the heat. Social media influencers and nutrition experts are increasingly dissecting product claims,leading to a more informed public. An industry veteran remarked that consumers are now scrutinizing labels more closely than ever before, with independent product testing becoming commonplace. The implications for businesses extend beyond regulatory notices,potentially disrupting sales and damaging reputations.
Legal challenges have emerged as some firms,including Dabur and Diageo, contest FSSAI's directives. Court documents reveal that Blinkit informed Dabur it would disable listings for certain products, including honey and coconut water,following the FSSAI's orders . beverage sector, valued at approximately ₹13,000 crore, is particularly affected, with companies like Red Bull and Sting Energy required to remove 'energy' from their labels and marketing within 90 days.
The core issue revolves around clarity in labeling rather than product safety. For energy drinks, the caffeine content is within permissible limits,yet concerns about misleading packaging persist. One industry player indicated a willingness to enhance warnings on cans to clarify that these drinks are not suitable for children,pregnant women, or those sensitive to caffeine .
As regulatory scrutiny intensifies, companies may need to simplify labels and make them more transparent. A spokesperson for Nestlé India expressed optimism,viewing evolving regulatory landscape as opportunity to bolster consumer trust through responsible communication.
However, significant challenges remain. India lacks clearly defined nutrient thresholds for foods high in sugar, salt,or saturated fat (HFSS). Public health experts and parliamentary committees have advocated for clearer front-of-pack labeling to aid consumer decision-making. In February, the Supreme Court recommended that such warnings be prominently displayed on packaged foods high in HFSS.
The liquor industry has voiced concerns over the regulatory changes, arguing that these products have historically been sold under FSSAI licenses and state excise registrations. They contend that if FSSAI demands changes to labels or product descriptions,clear guidance and adequate time should be provided for compliance .
Products like InBrew Beverages’ Bagpiper Deluxe Whisky and Old Cask Deluxe XXX Rum have also come under scrutiny, with the company asserting that dispute centers on the interpretation of existing flavoring rules rather than new standards.
As the regulatory landscape continues to evolve,the food and beverage industry must navigate these challenges carefully. immediate question remains: how far will companies go in altering their labels and marketing practices before regulators compel them to comply?
