PepsiCo and Monster Sue India’s Food Regulator Over ‘Energy Drink’ Label Ban

PepsiCo and Monster Beverage have filed lawsuits challenging India's food regulator over an order preventing high-caffeine beverages from being marketed with the description 'energy drink'.

The Food Safety and Standards Authority of India issued the direction on June 30 and gave companies 90 days to remove the term from affected products.

The companies argue in court filings that they were not given adequate notice or an opportunity to present their case before the regulator issued the direction.

PepsiCo has told the court that the order affects a large amount of existing packaging, including nearly 500 million labelled bottles and cans, according to Reuters.

The dispute has widened because Red Bull and Hell Energy have already obtained judicial relief in separate cases, creating different legal positions for companies facing the same regulatory issue.

India's energy-drink category is commercially significant: Reuters reports sales have been growing about 12.6 percent annually and the market is projected to reach roughly US$1.6 billion by 2028.

The lawsuits do not settle whether the regulator can ultimately restrict the terminology. Courts are examining the process and legal basis, and the regulator may still defend or reissue its position through further proceedings.

For beverage companies, the case reaches beyond one label. It affects packaging inventories, brand identity, marketing investment and how a fast-growing category is defined under India's food rules.