Published : 07 Oct 2026, 12:02 AM
Updated : 07 Oct 2026, 12:02 AM
PepsiCo, Monster Beverage and Reliance’s beverage unit can continue selling existing stocks labelled as “energy drinks” in India, a court ruled on Tuesday as it reviews a ban imposed by the country’s food regulator.
The Delhi High Court’s order gives the companies temporary relief after they challenged the June decision by the Food Safety and Standards Authority of India (FSSAI) to stop makers of high-caffeine beverages from using the description.
The court allowed PepsiCo and Monster to sell their existing stocks with the label, but said products manufactured after Tuesday cannot carry the term. Reliance Consumer received a similar reprieve earlier in the day, while Red Bull was granted relief last week.
The cases are being closely watched as FSSAI steps up a nationwide food safety campaign, including inspections, seizures and new warning-label requirements amid concerns over the health effects of highly processed foods.
During Reliance’s hearing, the court questioned why FSSAI had not given the company more time before enforcing the order, telling the regulator it was “never too late” to correct its mistake.
The court is due to continue hearing the cases in the coming weeks. FSSAI did not immediately respond to a request for comment.
The label dispute has disrupted operations for the companies in India’s growing energy drinks market, which Euromonitor forecasts will expand 12.6 percent annually, faster than in the US and China.
Reliance and PepsiCo have said hundreds of millions of beverages carrying the “energy drink” label have been removed from circulation since the ban. They said seizures by state authorities have caused financial losses and affected investment plans.
Reliance’s beverage unit said in a court filing dated Oct 1 that the seizures were causing “substantial disruption” to its operations. The company revived the Campa brand in 2023 and has used its retail network and lower prices to compete with Coca-Cola and PepsiCo.