PepsiCo, Monster, Reliance win reprieve on 'energy drink' label ban in India

Business Recorder reported that the Delhi High Court has paused a food regulator directive that would have stripped the 'energy drink' description from high-caffeine beverages, giving PepsiCo, Monster Beverage and Reliance Industries room to keep using it. The Food Safety and Standards Authority of India had issued the order in June, turning down the industry's attempts to delay it. Tuesday's hearing covered PepsiCo and Monster directly, while Reliance received a separate reprieve earlier the same day.

The companies argue that hundreds of millions of labelled products have been withdrawn from circulation since the ban, with state authorities seizing stock and causing losses and delays to investment plans. Reliance's beverages arm told the court in an October 1 filing that such measures were disrupting business operations. The bench questioned why the regulator failed to give the firms enough time before issuing its order, noting that the error could still be corrected.

Euromonitor figures cited in the report put retail sales of energy drinks in India rising 12.6% a year, a faster pace than in the US or China. The FSSAI has run a wider food safety push this year that includes raids, shutdowns and new warning-label rules for ingredients. The regulator had not yet responded to a request for comment, and the court will keep hearing the cases in the weeks ahead.