'Energy drink' ban could lead to nationwide stock-out: PepsiCo
What's the story
PepsiCo has warned that a continued ban on the "energy drink" label could lead to a nationwide stock-out of its top-selling products, Sting and others, in two months. The warning was issued during a hearing at the Delhi High Court, where PepsiCo's lawyer Sandeep Sethi said, "There will be no goods in the market after a couple of months." The statement comes as rival Red Bull is still allowed to sell its own products.
Regulatory action
FSSAI's ban on 'energy drink'
The Food Safety and Standards Authority of India (FSSAI) had banned the use of the term "energy drink" in June 2026.
The move was part of a broader effort to address health concerns over high-caffeine drinks.
The Delhi High Court has yet to rule on the merits of this ban, with a hearing scheduled for October 30.
Legal challenge
PepsiCo warns of distribution challenges
PepsiCo has challenged FSSAI's ban on the "energy drink" label in court.
The company argues that starting over with new labels would be a long and cumbersome process, as its cans are already bought and printed.
Sethi warned, "That will play havoc with our entire distribution system," highlighting the potential impact of this regulatory action on PepsiCo's operations in India.
Industry impact
Impact on brands and market dynamics
The FSSAI's ban has had a major impact on several brands, including PepsiCo, Monster, and Reliance Consumer.
The move comes as Sting has gained immense popularity among India's youth and rural consumers since its launch in 2017.
Despite the legal battle over this issue, Red Bull remains unaffected for now as it continues to sell its products without any restrictions from the regulator.