Delhi HC Refuses Immediate Relief To Pepsico On Labelling Of New Sting Stocks As 'Energy Drink'

(MENAFN- Live Mint) The Delhi High Court on Monday refused to give PepsiCo immediate relief in its dispute over the use of the term 'energy drink' on new stocks of Sting.

A division bench of the court sent the matter back to a single judge and asked him to explain within a week why PepsiCo should not be allowed to manufacture more products carrying the label.

"Let the aforesaid exercise be completed by the learned single judge within the period of one week from today," acting chief justice of the Delhi High Court, Justice Nitin Wasudeo Sambre, said.

The bench noted that the earlier order did not specify the reasons for restricting further production of the product.

"We deem it appropriate to dispose of the present appeal with further clarification that we haven't appreciated the merits of the matter," he said.

The ruling means PepsiCo will have to wait for a fresh decision before receiving any relief regarding the manufacture of new stock carrying the 'energy drink' descriptor.

Queries sent to PepsiCo did not receive a response.

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On 6 October, Justice Amit Mahajan at the Delhi High Court had allowed PepsiCo to sell existing stocks bearing the 'energy drink' descriptor but barred the manufacture of new stocks with the label, following directions issued by the Food Safety and Standards Authority of India (FSSAI ) restricting the use of the term on certain caffeinated beverages.
The Delhi High Court had passed similar interim orders in favour of other players too. On 29 September, the Delhi HC set aside the notice served to Red Bull over 'energy drink' labelling, holding that the company should have been given an opportunity to respond before the regulator passed the order. The court also noted that orders against Reliance Consumer's Campa energy drink were passed without issuing a show-cause notice to the company.

In a post on social media platforms on 1 July, FSSAI said it has“issued notices to several beverage brands claiming to be 'energy drinks' for misbranding and misleading claims.”
The regulator named brands, including Red Bull Energy Drink, PepsiCo India's Adrenaline Rush Energy Drink, Sting Energy Drink, Monster Energy, Hell-Energy Drink, and Reliance's Campa Energy Drink–Gold Boost, for using the descriptor 'energy drink' on physical packaging and across various e-commerce platforms.

PepsiCo is a major player in the beverages market in India. It sells brands like Sting and Adrenaline Rush, which are commonly classified as 'energy drinks'.
FSSAI said its food category system is not intended for product naming or labelling. It also said claims such as 'stimulates mind', 'energises body', 'enhances focus', 'boosts energy levels' and 'aids in general weakness' were not permissible unless legally supported.

In earlier filings, PepsiCo had said that the food regulator's order would have 'grave ​commercial consequences' and hurt 'substantial investments', since it had 492 million bottles and 26 million cans ⁠with those labels in circulation on 31 July.
India's energy drinks market is expanding rapidly. Euromonitor estimates retail sales are growing 12.6% annually, faster than in the US and China. The market is expected to be worth $1.6 billion by 2028.

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