Delhi HC allows PepsiCo, Monster to sell existing stock labelled ‘energy drink’

The Delhi High Court on Tuesday allowed PepsiCo and Monster Beverage to sell their existing stock labelled as “energy drink”, while directing the companies not to manufacture additional products carrying the descriptor.

The companies had challenged orders issued by the Food Safety and Standards Authority of India (FSSAI) around June 30, directing them to stop using the term “energy drink” for certain high-caffeine beverages. Subsequent orders directed food safety officials across the country to seize the products.

Justice Amit Mahajan said products manufactured up to Tuesday could be sold with the “energy drink” label. He also stayed the regulator’s order to the extent that no coercive action would be taken against the companies until November 5, when the matter will next be heard.

PepsiCo manufactures Sting Energy and Adrenaline Rush, while Monster Beverage sells Monster Energy using the label.

The court also stayed a similar FSSAI order against Reliance Consumer Products concerning its Campa Energy Drink – Gold Boost. The court noted that the company had not been given an opportunity to present its case before the regulator issued the direction and had not received a show-cause notice.

On September 29, the court had similarly set aside an FSSAI order against Red Bull, observing that the company had not been given an opportunity to respond.

The judge told the regulator that, since orders in the Reliance and Red Bull matters had already been passed, it could file applications in those cases seeking corrections.

The FSSAI’s orders came as food regulators stepped up action against food adulteration and misleading advertisements in recent months.