Indian High Court Allows PepsiCo and Others to Sell Existing Stock Labeled 'Energy Drinks'

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Summary · why it matters

India's Delhi High Court ruled on the 6th that, in a lawsuit over the naming of high-caffeine beverages, PepsiCo of the United States, Monster Beverage, and the beverage division of Indian conglomerate Reliance Industries may sell already-manufactured inventory products labeled 'energy drinks.' In June, the Food Safety and Standards Authority of India (FSSAI) ordered PepsiCo and other high-caffeine beverage makers to stop using the name 'energy drinks,' and the manufacturers had sought an injunction. The Delhi High Court heard a petition filed the previous week by PepsiCo and Monster Beverage and allowed both companies to use the label, but sales are permitted only for already-manufactured inventory, and products manufactured on or after the 6th cannot carry the 'energy drinks' label. Prior to this, the court granted temporary relief to Reliance Consumer, the beverage division of Reliance, and the previous week it granted similar relief to Austria's Red Bull. This year the FSSAI has strengthened food safety measures across India, including inspections, closure of facilities, and mandatory warning labels for new ingredients. According to Reliance and PepsiCo, the labeling ban has effectively halted sales of hundreds of millions of bottles of products labeled 'energy drinks,' and seizures by state authorities have caused financial losses and affected investment plans. India's energy drink market is expected to reach 1.6 billion dollars by 2028.

Impact on assets 3

Consumer Staples▲
Monster Beverage Corp
MNST
▲ PositiveRegulationrelevance

Delhi High Court allowed Monster to sell existing inventory labeled 'energy drinks' after FSSAI's ban, easing the regulatory halt on sales.

PepsiCo Inc
PEP
▲ PositiveRegulationrelevance

Court permitted PepsiCo to sell already-manufactured inventory labeled 'energy drinks' despite the FSSAI labeling ban.

Energy Transition & Power Demand▲
Reliance Industries Limited
RIGD
▲ PositiveRegulationrelevance

Reliance's beverage division received court relief allowing sale of existing 'energy drinks'-labeled inventory.

Off-coverage companies 1

Reliance Consumer Productsi
Private▲ PositiveRegulationrelevance

Reliance Consumer was granted temporary relief to sell existing inventory labeled 'energy drinks' after the FSSAI ban.