PepsiCo, Monster challenge India 'energy drink' label ban citing business impact
NEW DELHI: PepsiCo and Monster Beverage have sued India’s food regulator for banning their use of the “energy drink” label, non-public court filings show, escalating a regulatory fight that has jolted a sector expected to be worth $1.6 billion by 2028. The food safety regulator ordered makers of high-caffeine beverages sold as “energy drinks” to stop using the description on June 30 amid growing…
PepsiCo and Monster Beverage have filed lawsuits against India's food regulator, in response to a ban on their use of the "energy drink" label. The regulator's decision, mandated to take effect on June 30, is part of a sweeping food safety crackdown. PepsiCo India claims the restriction will cause "grave commercial consequences" and adversely affect its substantial investments, as it still has over 492 million bottles and 26 million cans bearing the label in circulation as of July 31.
The regulator's directive provided no opportunity for the companies to explain their position, and thus, the filing argues that the decision should be overturned. The companies were reportedly forced to drop the term "energy drink" from high-caffeine beverages within 90 days. With the energy drink market in India estimated to reach $1.6 billion by 2028, this regulatory dispute is shaking up the sector.
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