PepsiCo, Monster Beverage and Reliance’s beverage unit can keep the ‘energy drink’ label on existing stocks in India, a court ruled yesterday as it reviewed a ban on the label by the food regulator.
The ruling provides a breather for the companies after a months-long dispute they say disrupted operations.
The regulator in June ordered makers of high-caffeine beverages sold as ‘energy drinks; to stop using the description, rejecting the industry’s efforts to stall the move in a market expected to be worth $1.6 billion by 2028.
Yesterday, the Delhi High Court in India’s national capital made the allowances for PepsiCo and Monster in a hearing that followed their pleas last week, according to court orders released.
The decision permits the companies to only sell existing stocks of drinks with the label. Any stocks manufactured after the stock must not carry the ‘energy drink’ label, the order added.
The order follows reprieves the court granted to Reliance Consumer, the beverage arm of Reliance, earlier yesterday and to Austria’s Red Bull last week.
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