PepsiCo, Monster and Reliance can keep ‘energy drink’ label as Delhi HC pauses FSSAI ban

PepsiCo, Monster Beverage and Reliance Consumer Products Ltd (RCPL), the FMCG arm of Reliance Industries, can keep using the ‘energy drink’ label in India after the Delhi High Court put the food regulator's ban on hold. The ruling is a breather after a dispute the companies say has disrupted their operations.

The Food Safety and Standards Authority of India (FSSAI) had ordered makers of high-caffeine beverages sold as ‘energy drinks’ to stop using the description in June, rejecting industry efforts to stall the move.

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On Tuesday, the court put the directive on hold for PepsiCo and Monster in a hearing that followed their pleas last week, according to a lawyer present. Similar reprieves were granted to RCPL earlier the same day and to Austria's Red Bull last week.

While hearing RCPL, the court asked FSSAI's lawyer why the company had not been given enough time before the order was passed, and told the agency it was never too late to correct a mistake. The cases will be heard further in the coming weeks, and FSSAI did not immediately respond to a request for comment.

The impact on the ground has been heavy. Reliance and PepsiCo have said hundreds of millions of products labelled ‘energy drink’ were abruptly taken out of circulation after the ban, while state authorities seized their stock, causing financial losses and affecting investment plans. In a court filing dated October 1, Reliance's beverages arm said such moves were causing substantial disruption to its business operations.

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The ban also threatened the ambitions of all three in a fast-growing market. According to Euromonitor, retail sales of energy drinks in India are expanding at 12.6% a year, outpacing growth in the US and China, and the market is expected to be worth $1.6 billion by 2028. Reliance revived the Campa brand in 2023 and has since used its retail network and low prices to take on Coca-Cola and PepsiCo.

The case is being closely watched as FSSAI has embarked on a broader food safety push this year, with action ranging from raids and shutdowns to new ingredient warning-label requirements, driven by growing concern over the health risks posed by junk food and beyond.