- PepsiCo and Monster Beverage contest FSSAI's ban on "energy drink" labels in Indian court
- FSSAI's June 30 directive demands removal of "energy drink" term from high-caffeine beverages
- PepsiCo cites 492 million bottles, 26 million cans affected and no prior notice given
PepsiCo and Monster Beverage have challenged India's food safety regulator in court over an order restricting the use of the term “energy drink” for high-caffeine beverages, escalating a dispute with significant commercial implications.
PepsiCo India told a Delhi court that FSSAI's June 30 directive could have “grave commercial consequences” and affect substantial investments, according to a court filing in New Delhi. The company said 492 million bottles and 26 million cans carrying the disputed labels were in circulation as of July 31.
The company also argued that it was not given an opportunity to present its position before the regulator issued the directive and has sought to have the decision set aside.
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Monster Energy India has raised similar objections, saying it received no prior notice and was suffering financial losses and reputational damage.
The regulator had given companies 90 days to remove “energy drink” and similar descriptions from high-caffeine beverages. Several states began seizing affected stock soon after the directive, according to the filings.
The dispute comes as India's energy drink market expands rapidly. Retail sales are growing 12.6% annually, while the industry is projected to reach $1.6 billion by 2028.
PepsiCo's Sting, launched in India in 2017, has contributed to the market's expansion, with its Rs 20 bottles gaining popularity among younger consumers and rural buyers.
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The regulator's action comes amid broader food-safety scrutiny of beverages containing high levels of caffeine, sugar and taurine.
The industry has challenged the move elsewhere. A Delhi court recently quashed the regulator's order against Red Bull after finding that the company had not been given an opportunity to present its views. A western Indian court has also temporarily put the decision on hold for Hell Energy.
The regulatory battle leaves companies facing uncertainty over product labelling, inventory and market operations.
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