Restrictions on Energy Drink Labels: Pepsi Takes a Key Decision

PepsiCo has told the Delhi High Court that its existing stocks of products could run out within two months if restrictions on the use of the term “energy drink” remain in place. The company made the submission during a hearing on October 15 concerning the restrictions imposed by the Food Safety and Standards Authority of India (FSSAI). PepsiCo argued that rival Red Bull continues to sell its products under the “energy drink” label after securing relief from the court. Meanwhile, PepsiCo, Monster and Reliance Consumer Products have reportedly been limited to selling their existing stocks under the previous labelling arrangement.

The case has wider implications for the regulation of product labels in India’s rapidly growing energy drink market. In June, amid concerns over the potential risks associated with high-caffeine beverages, FSSAI directed manufacturers of such products to remove the term “energy drink” from their labels. Red Bull subsequently obtained relief through the court, while other companies have faced restrictions on selling products with the disputed label. The proceedings could help clarify the extent of FSSAI’s authority over the labelling of these beverages.