PepsiCo warns ’energy drink’ ban could run its India supplies dry as Red Bull sells on

PepsiCo warned an Indian court on Thursday that a persistent ban on the "energy drink" label could swiftly deplete its top-selling products' supply throughout the nation within two months. The Delhi High Court, however, has once again dismissed PepsiCo's request to resume manufacturing drinks bearing the coveted label, which has been restricted by the regulator, the Food Safety and Standards Authority of India (FSSAI).

PepsiCo's lawyer, Sandeep Sethi, informed the court that the market will be devoid of goods in a couple of months. While rivals such as Red Bull, Monster, and Reliance Consumer can continue manufacturing, PepsiCo, Monster, and Reliance Consumer have been constrained to selling their existing stocks with the label. This case is a test of the extent to which the food safety regulator can control product labels in India's rapidly expanding energy-drink market, primarily driven by PepsiCo's products.

In June, the regulator ordered manufacturers of high-caffeine drinks to discontinue the term "energy drink" due to mounting concerns about the health hazards associated with such products. PepsiCo's energy drink Adrenaline Rush is also sold in the market. Restarting production from scratch is a lengthy and intricate process, as Sethi explained to the court, as the company's cans are already procured and printed.

This predicament will disrupt their entire distribution system. The court has not yet ruled on the validity of the ban, with the upcoming hearing scheduled for October 30.