PepsiCo warns Sting may vanish while Red Bull runs

PepsiCo warned on Thursday that a ban on its energy drink label could lead to nationwide stockouts of its top-selling products within two months. This comes as the Delhi High Court denied PepsiCo permission to resume selling drinks bearing the popular label, which is currently prohibited by the Food Safety and Standards Authority of India (FSSAI).

PepsiCo's lawyer, Sandeep Sethi, stated that rival Red Bull remains unaffected as it won a court reprieve from the regulator's order a month ago. Currently, PepsiCo, Monster, and Reliance Consumer are forced to sell any remaining stock labeled as "energy drinks." The case highlights the extent of the FSSAI's ability to regulate product labels in India's rapidly expanding energy drink market, which has largely been fueled by PepsiCo's Sting brand.

In 2017, PepsiCo introduced Sting at a price of 20 rupees ($0.21) per plastic bottle, which proved popular among 15- to 19-year-olds and rural consumers. Sethi explained to the court that restarting production would be a challenging and time-consuming process, as the company's cans had already been purchased and printed, disrupting the entire distribution system.

The court has yet to make a decision on the merits of the ban, with the next hearing scheduled for October 30.