PepsiCo, Monster and Reliance win reprieve on 'energy drink' label ban in India
PEP•A Delhi court put India’s ban on the “energy drink” label on hold for PepsiCo, Monster Beverage and Reliance Industries. The market is forecast to reach $1.6 billion by 2028.
1. Court pauses label ban
The Delhi High Court put the food regulator’s directive on hold for PepsiCo and Monster Beverage on Tuesday, after granting a similar reprieve to Reliance Industries earlier that day. Austria’s Red Bull had received a reprieve the previous week. The court will continue hearing the cases in the coming weeks.
2. Companies cite disruption
The regulator ordered makers of high-caffeine beverages sold as “energy drinks” to stop using the description in June. PepsiCo and Reliance have said hundreds of millions of their products were taken out of circulation, while state authorities seized stock, causing financial losses and affecting investment plans. India’s energy drinks market is forecast to reach $1.6 billion by 2028.
