PepsiCo, Monster, Reliance win reprieve on 'energy drink' label ban in India
PEP•A Delhi High 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 puts ban on hold
The Delhi High Court allowed PepsiCo, Monster Beverage and Reliance Industries to keep using the “energy drink” label on products in India while it hears their cases. The regulator ordered makers of high-caffeine beverages to stop using the description in June; the court had also granted a reprieve to Red Bull.
2. Companies cite disruption
Reliance and PepsiCo said hundreds of millions of their products labeled “energy drink” had been taken out of circulation since the ban. They said state authorities seized stock, causing financial losses and affecting investment plans. The court will continue hearing the cases in the coming weeks.
3. Market outlook
India’s energy drinks market is forecast to reach $1.6 billion by 2028, with retail sales expanding 12.6% a year, according to Euromonitor.
