PepsiCo, Monster, Reliance win partial reprieve on 'energy drink' label ban in India
PEP•A Delhi High Court ruling allows PepsiCo, Monster Beverage and Reliance’s beverage unit to sell existing stocks in India with the “energy drink” label, but products made after Tuesday cannot carry it. India’s energy drinks market is forecast to reach $1.6 billion by 2028.
1. Court allows existing stock sales
The Delhi High Court ruled that PepsiCo, Monster Beverage and Reliance’s beverage unit can sell existing stocks carrying the “energy drink” label while it reviews India’s food regulator’s ban. Stocks manufactured after Tuesday must not carry the label. The court had granted similar relief to Reliance earlier on Tuesday and to Red Bull the previous week.
2. Companies cite disruption
Reliance and PepsiCo said hundreds of millions of labelled beverage products had been taken out of circulation since the ban, and that state authorities seized stock, causing financial losses and affecting investment plans. The court will continue hearing the cases in the coming weeks.
