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PepsiCo Warns of Empty Shelves Over Energy Drink Label Ban
15 Oct
Summary
- PepsiCo fears nationwide stockouts within two months due to a label ban.
- Rival Red Bull is currently exempt from the similar regulator order.
- The ban impacts the rapidly growing Indian energy drink market significantly.
PepsiCo informed an Indian court on October 15, 2026, that a prolonged ban on labeling products as "energy drinks" could result in a nationwide stock shortage within two months. The company's lawyer, Sandeep Sethi, stated that competitors, such as Red Bull, are currently permitted to sell their products without issue. Red Bull secured a reprieve from a similar regulatory order last month, while PepsiCo, Monster, and Reliance Consumer are presently restricted to selling their existing inventory bearing the disputed label.
This case scrutinizes the extent of the Food Safety and Standards Authority of India's (FSSAI) power to regulate product labels within India's fast-expanding energy drink market. Sethi argued that relabeling would be a "long cumbersome process" that would disrupt the company's entire distribution system. The court has not yet ruled on the ban's merits, with the next hearing scheduled for October 30, 2026. Energy drinks, particularly PepsiCo's Sting, have seen significant growth in India since 2017, appealing to younger consumers and rural areas.
