PepsiCo, Monster challenge India ‘energy drink’ label ban citing business impact
PEP•PepsiCo and Monster Beverage have sued India’s food regulator over a ban on using the “energy drink” label for high-caffeine beverages. PepsiCo said 492 million bottles and 26 million cans carrying the labels were in circulation on July 31.
1. Companies challenge directive
PepsiCo and Monster Beverage have sued India’s food regulator, saying it banned their use of the “energy drink” label without consulting them. The regulator’s June 30 directive ordered makers of high-caffeine beverages to stop using the description.
2. Business impact cited
PepsiCo said the prohibition would have “grave commercial consequences” and harm substantial investments; it reported 492 million labeled bottles and 26 million labeled cans in circulation on July 31. Monster Energy India said it was given no prior notice and was suffering “grave financial loss and reputational harm.”
3. Court cases pending
The companies’ cases are likely to be taken up by a judge next week. A Delhi court this week quashed a similar order for Red Bull, while a court in western India put the government’s decision on hold for Hell Energy.
