‘Energy drink’ case: PepsiCo, Monster get relief

The Delhi High Court recently granted a reprieve to energy drink companies such as PepsiCo India and Monster Energy India, staying orders from the Food Safety and Standards Authority of India (FSSAI). These orders previously prohibited the use of the term "energy drink" in the companies' products due to alleged misbranding and misleading claims.

The court also released Reliance Consumer Products from the same orders after questioning the Food Safety and Standards Authority of India (FSSAI) on why they did not provide a show-cause notice to Reliance Consumer Products before passing the order on June 30 and July 17.

The court expressed concern over the prejudicial effect the orders could have on Reliance Consumer Products, if not stayed. They instructed the Food Safety and Standards Authority of India to reconsider and issue a fresh order after giving the company a proper show-cause notice. PepsiCo India and Monster Energy India were allowed to sell the stock already manufactured with the "energy drink" label on the day of the ruling, but they are not permitted to continue manufacturing the product with similar terms in the future.

Reliance Consumer Products argued that the orders were passed without providing a show-cause notice, and the court questioned FSSAI if they had issued one. PepsiCo India claimed that the prohibitory directions would have serious commercial consequences, as they already had 492 million bottles and 26 million cans with the "Energy Drink" label on the market. The companies also mentioned that they were not given a proper hearing before the FSSAI passed the orders.

FSSAI defended its decision, stating that Pepsi and other similar manufacturers had agreed to discontinue using the term "Energy Drink" in future productions. However, the companies contested that they had only accepted the directions under protest. In September, the high court had previously set aside FSSAI's order related to Red Bull India, as it did not receive a show-cause notice.

The Food Safety and Standards Authority of India had stated that it does not recognize the category of energy drinks due to the lack of formal category standards and the misleading nature of certain claims.