PepsiCo fears India supply crunch over energy drink ban
The Delhi High Court again rejected PepsiCo's bid to resume producing drinks labelled as 'energy drinks', following a ban by the Food Safety and Standards Authority of India (FSSAI).
PepsiCo warned an Indian court that a ban on labeling energy drinks could leave its top-selling products out of stock across the country within two months. The remarks came after the Delhi High Court again denied PepsiCo permission to relabel its drinks, which are restricted by the Food Safety and Standards Authority of India (FSSAI).
PepsiCo's lawyer, Sandeep Sethi, said, "There will be no goods in the market after a couple of months," adding that competitors like Red Bull are unaffected by the ban. The case is testing the regulator's authority over product labelling in India's rapidly expanding energy drink market, which is largely driven by PepsiCo. In June, the regulator ordered manufacturers of high-caffeine drinks to remove the term "energy drink" due to health concerns.
PepsiCo reported success with its 20-rupee energy drink, Sting, and Adrenaline Rush, but relabeling was a lengthy and disruptive process. The court's ruling on the ban has not yet been given, with the next hearing scheduled for October 30.
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- PepsiCo fears India supply crunch over energy drink ban freemalaysiatoday.com