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PepsiCo, Monster, and Reliance Win Reprieve on Energy Drink Label Ban in India
M
Moneycontrol•06-10-2026, 19:45
PepsiCo, Monster, and Reliance Win Reprieve on Energy Drink Label Ban in India
- •The Delhi High Court put on hold the food regulator's ban on the "energy drink" label for PepsiCo, Monster Beverage, and Reliance Consumer Products Ltd.
- •The food regulator had ordered makers of high-caffeine beverages in June to stop using the description, disrupting operations and leading to stock seizures.
- •Companies argued that the sudden ban caused substantial financial losses and impacted investment plans in India's fast-growing energy drinks market.
- •The court questioned the Food Safety and Standards Authority of India regarding why sufficient time was not given to companies before passing the order.
- •Legal proceedings will continue in the coming weeks as part of a broader crackdown on food safety by Indian authorities.
Key Questions Answered
The Delhi High Court stayed the directive after beverage companies like PepsiCo, Monster, and Reliance filed pleas arguing that the abrupt ban disrupted operations, caused stock seizures, and resulted in financial losses, with the court noting the regulator did not allow sufficient time.
PepsiCo, Monster Beverage, Reliance Consumer Products Ltd. (RCPL), and Austria's Red Bull all secured reprieves from the Delhi High Court as legal challenges against the FSSAI directive proceeded.
The FSSAI ordered high-caffeine beverage makers to stop using the description because India has no notified food standards recognizing energy drinks as a separate category, and functional claims are not permissible.
