Home / Business and Economy / PepsiCo, Monster Allowed Existing 'Energy Drink' Stock
PepsiCo, Monster Allowed Existing 'Energy Drink' Stock
6 Oct
Summary
- Companies can sell existing 'Energy Drink' labeled stock.
- New product manufacturing with 'Energy Drink' label is banned.
- Court ruling partially overturns FSSAI's ban on labels.
The Delhi High Court issued a significant ruling on Tuesday, permitting PepsiCo and Monster Beverages to continue selling their existing inventory of beverages marketed as 'Energy Drink.' This decision, however, comes with a crucial restriction: the companies are now barred from manufacturing any new products that use the same descriptive term on their labels.
The ruling emerged from the companies' challenge against directives issued by the Food Safety and Standards Authority of India (FSSAI). FSSAI had previously instructed food safety officials across the country to seize products bearing the disputed 'energy drink' label and demanded the removal of this descriptor.
Sources indicate that FSSAI's actions were prompted by concerns that the term 'Energy Drink' might mislead consumers into believing it provides nutritional energy, rather than acting as a stimulant. This is particularly concerning given the combination of high caffeine and sugar levels often found in these beverages, and their marketing towards younger consumers and athletes.
PepsiCo, which sells brands like Sting Energy and Adrenaline Rush, and Monster Beverages, known for Monster Energy, were granted relief regarding their current stock. The court's decision addresses the immediate availability of these products while signaling a shift in regulatory expectations for future labeling.
