India says PepsiCo, Monster marketed beverages with 'energy drink' label to dupe consumers
PEP•India's food regulator accused PepsiCo and Monster Beverage of marketing high-caffeine beverages as energy drinks to “dupe” consumers, defending a ban on the label. The Delhi High Court allowed the companies to sell old labeled stock but barred the label on new stock.
1. Regulator challenges labeling
India's food regulator accused PepsiCo and Monster Beverage of marketing high-caffeine beverages as energy drinks to “dupe” consumers, according to court filings dated October 28. The FSSAI said India had never established standards for an energy drink category and asked the court to dismiss the companies' challenges to its June ban on the term.
2. Court and health concerns
The Delhi High Court last month allowed the companies to exhaust old stock carrying the label but barred them from using it on new stock. The case is due to be heard later this week. FSSAI's filings cited health concerns associated with high caffeine, sugar and taurine.
3. Market context
The energy drinks market in India is projected to be worth $1.6 billion by 2028, with annual sales growth of 12.6%, Euromonitor says. PepsiCo launched its 21-cent-bottle Sting drink in India in 2017; Red Bull, Hell Energy and Reliance Consumer have also filed lawsuits.
