Delhi HC puts FSSAI energy drink label ban on hold for PepsiCo, Monster, Reliance

NEW DELHI: The energy drink battle has got a temporary shot in the arm for PepsiCo, Monster Beverage and Reliance Industries, with the Delhi High Court putting the food regulator’s restrictions on the use of the “energy drink” descriptor on hold.

The interim relief comes amid a growing legal tussle between beverage makers and the Food Safety and Standards Authority of India (FSSAI) over the labelling of high-caffeine drinks.

The regulator had on 30 June directed manufacturers of beverages being sold as “energy drinks” to stop using the descriptor. The move has triggered challenges from several major players, including PepsiCo, Monster and Reliance Consumer Products, the beverages arm of Reliance Industries.

On Tuesday, 6 October, the Delhi High Court granted relief to PepsiCo and Monster in their pleas challenging the FSSAI action. The court allowed them to sell existing stocks carrying the “energy drink” label, while clarifying that the interim protection does not extend to manufacturing fresh products with the descriptor.

Reliance Consumer Products received similar relief earlier on Tuesday in its challenge concerning Campa Energy Drink. The company can continue marketing its Campa products as energy drinks while the legal proceedings continue.

The court’s intervention follows a similar reprieve for Red Bull last week. In that case, the Delhi High Court set aside the FSSAI order after finding that the company had not been given an opportunity to respond before the directive was issued.

The FSSAI action centres on the use of the term “energy drink” for high-caffeine beverages. The regulator has argued that caffeine provides stimulation rather than nutritional energy, raising concerns around how such products are described to consumers.

The industry, meanwhile, has challenged the manner in which the restriction was imposed, with companies arguing that the move has created substantial operational and financial disruption.

PepsiCo and Monster had approached the High Court after the regulator’s directive threatened products already manufactured and packaged under the “energy drink” description. PepsiCo markets products including Sting Energy and Adrenaline Rush, while Monster sells beverages under the Monster Energy brand.

Reliance has similarly argued that the order affected its beverage operations. Its Campa portfolio had already been manufactured and packaged using the disputed descriptor, creating concerns around existing inventory and packaging material.

The company had said the action led to stock seizures and product removals from e-commerce platforms, disrupting its operations.

The procedural aspect of the regulator’s action has emerged as a key point in the hearings.

During Reliance’s plea, the Delhi High Court questioned FSSAI on why the company had not been given adequate time or an opportunity to respond before the order was passed. The court observed that it was “never too late” for the regulator to correct its approach.

The issue of due process has also featured in the cases involving other beverage companies. PepsiCo and Monster had argued that they were not given a proper opportunity to make their case before the restrictions were imposed.

The court’s latest orders, however, are interim in nature and do not settle the larger question of whether FSSAI can ultimately restrict the use of the “energy drink” descriptor.

The dispute comes as India’s energy drinks market continues to expand. The market is projected to reach around $1.6 billion by 2028, making the labelling issue commercially significant for both established multinational brands and newer domestic players.

The legal fight is also unfolding against the backdrop of a wider food safety push by FSSAI, which has stepped up inspections, seizures and enforcement measures across the country.

For beverage companies, the immediate court relief provides some breathing room for products already on shelves. For the regulator, the continuing cases could determine how far its labelling powers extend and how such directives must be implemented.

For now, the “energy drink” label lives to fight another day, but the bigger battle between the regulator and beverage makers is far from over.