PepsiCo Warns of Energy Drink Shortages Over Labeling Ban
PepsiCo warned the Delhi High Court that a government ban on energy drink labels could deplete nationwide product supplies within two months.
The Delhi High Court refused to allow PepsiCo to resume production of beverages using the energy drink label, despite warnings that the company could face nationwide stockouts within two months. The dispute stems from a June order by the Food Safety and Standards Authority of India requiring high-caffeine drink manufacturers to remove the term due to health risk concerns.
While Red Bull secured a court reprieve last month to continue sales, PepsiCo, Monster, and Reliance Consumer are currently restricted to selling existing inventory. Legal counsel for PepsiCo argued that rebranding popular products like Sting and Adrenaline Rush is a long and cumbersome process that would disrupt the company's distribution system.
Lawyer Sandeep Sethi stated that the ban would play havoc with the distribution system and warned that there will be no goods in the market after a couple of months. He further noted that competitors are currently able to manufacture. A ruling on the merits of the labeling ban is scheduled for October 30.
