Delhi HC denies immediate relief to PepsiCo in labeling new Sting shares as ‘energy drink’ | Today’s news
The Delhi High Court on Monday refused to grant immediate relief to PepsiCo in a dispute over the use of the term “energy drink” on new stock of Sting.
A division of the court sent the case back to a single judge and asked him to explain within a week why PepsiCo should not be allowed to make more products bearing the label.
“Let the above exercise be completed by the learned single judge within one week from today,” said Acting Chief Justice of Delhi High Court Justice Nitin Wasudeo Sambre.
Benchmark noted that the earlier order did not specify reasons for limiting further production of the product.
“We consider it appropriate to dispose of this appeal with the further clarification that we have not appreciated the merits of the matter,” he said.
Governing means PepsiCo will have to wait for the new decision before receiving any relief regarding the production of new stock carrying the descriptor “energy drink”.
Inquiries sent to PepsiCo did not receive a response.
On October 6, Justice Amit Mahajan of the Delhi High Court allowed PepsiCo to sell existing stock bearing the label “energy drink” but banned the manufacture of new stock bearing the label in accordance with guidelines issued by the Food Safety and Standards Authority of India (FSSAI) restricting the use of this term for certain caffeinated beverages.
The Delhi High Court has issued similar interim orders in favor of other players. On September 29, the Delhi HC stayed the notice served on Red Bull regarding the labeling of “energy drinks”, saying that the company should have been given an opportunity to respond before the regulator passes the order. The court also noted that the orders against Reliance Consumer’s Campa energy drink were passed without issuing a notice to the companies.
In a post on social media platforms on July 1, FSSAI said it has “issued notices to several beverage brands claiming to be ‘energy drinks’ for incorrect 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 beverage market in India. It sells brands such as Sting and Adrenaline Rush, which are commonly classified as “energy drinks”.
FSSAI said its food category system is not intended to name or label products. It also stated that claims such as “stimulates the mind”, “energizes the body”, “enhances concentration”, “increases energy levels” and “helps with general weakness” are not permissible unless they are supported by law.
In earlier filings, PepsiCo said the food regulator’s order would have “serious commercial consequences” and harm “substantial investment” as 492 million bottles and 26 million cans with the labels were in circulation on July 31.
The Indian energy drink market is expanding rapidly. Euromonitor estimates that retail sales are growing at 12.6% annually, faster than the US and China. The market is expected to be worth $1.6 billion by 2028.
