PepsiCo has warned the Delhi High Court that its leading energy drinks could disappear from Indian shelves within two months after the Food Safety and Standards Authority of India (FSSAI) barred manufacturers from using the term “energy drink” on high-caffeine products.
The company’s warning came as the court again declined to allow PepsiCo to resume manufacturing drinks carrying the label. PepsiCo’s lawyer, Sandeep Sethi, told the court that the company could have no goods in the market “after a couple of months” because competitors were still able to manufacture their products.
The court’s latest position leaves PepsiCo, Monster and Reliance Consumer limited to selling existing stocks bearing the disputed label. Red Bull, however, received a court reprieve from the regulator’s order last month and remains able to sell its products for now, according to the report.
The dispute follows an FSSAI order issued in June directing makers of high-caffeine beverages to stop using the term “energy drink”. The regulator’s action came amid concerns about the health risks associated with such products. The court has not yet ruled on the merits of the ban.
PepsiCo told the court that changing its packaging and restarting production would be difficult because cans had already been purchased and printed. Sethi described starting over as “a long cumbersome process” and said the change would disrupt the company’s distribution system.
The immediate commercial impact is tied to PepsiCo’s distribution network for Sting, which the company launched in India in 2017. The drink’s ₹20 plastic bottles helped drive the expansion of energy beverages in the country, particularly among consumers aged 15 to 19 and in rural areas, according to Euromonitor, as cited in the report. PepsiCo also sells Adrenaline Rush in India.
The labelling dispute therefore extends beyond the wording on a can. It has created different operating conditions for major brands while the court considers the regulator’s authority to restrict the term across the category. Companies that cannot manufacture new stocks with the label must rely on existing inventory, while the court’s interim relief for Red Bull has allowed it to continue selling its products.
For consumers, the immediate issue is whether products carrying the label remain available through the existing distribution chain. The longer-term outcome will depend on the court’s decision on the validity and scope of the FSSAI order, as well as how manufacturers are required to change their packaging and market positioning.
The next hearing in the case is scheduled for October 30, when the court is expected to continue considering the dispute.
