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Delhi High Court Lets PepsiCo and Monster Sell Existing Energy Drink Stock
India’s food regulator told some drink companies to stop calling certain drinks “energy drinks.”
PepsiCo and Monster asked the Delhi High Court to review that direction.
The court said they may sell the stock they had already made, but must not make more with that label for now.
The court also said officials should not take coercive action against them until November 5.
A similar regulator order involving Reliance Consumer Products was stayed.
The court said that company had not been given a chance to explain its position before the order.
The court had earlier set aside a similar order involving Red Bull for the same procedural reason.
The wider cases are still before the court.
The Delhi High Court allowed PepsiCo and Monster Beverage to sell existing stock labelled as “energy drink.”
The companies cannot manufacture more products using that descriptor while the court’s interim relief applies.
The Food Safety and Standards Authority of India had directed companies to stop using the label and instructed food safety officials to seize products.
Justice Amit Mahajan said no coercive action would be taken against PepsiCo and Monster until November 5, when the matter is due to be heard again.
The court also stayed a similar direction affecting Reliance Consumer Products and had earlier set aside an order against Red Bull, citing lack of an opportunity to respond.
- Who
- PepsiCo, Monster Beverage, the Food Safety and Standards Authority of India and the Delhi High Court; Reliance Consumer Products and Red Bull are also mentioned.
- What
- The court allowed PepsiCo and Monster to sell existing stock labelled “energy drink,” while restraining further manufacture using that descriptor under the interim relief.
- Where
- Delhi, India.
- When
- The ruling was made Tuesday; the PepsiCo and Monster matter is next scheduled for November 5.
- Why
- The companies challenged the regulator’s orders; the court’s related orders cited the companies not having been given an opportunity to respond.
Companies’ challenge
Food regulator’s directions
Use of the “energy drink” label
Companies’ challenge
PepsiCo and Monster challenged orders preventing use of the descriptor and sought permission to sell existing labelled stock.
Food regulator’s directions
The regulator directed the companies to stop using the label for certain high-caffeine beverages and instructed food safety officials to seize products.
Opportunity to respond
Companies’ challenge
The court noted in the Reliance and Red Bull matters that the companies had not been given an opportunity to present their cases before the regulator’s directions.
Food regulator’s directions
The regulator’s directions were issued without first serving a show-cause notice in the Reliance matter; the articles do not report the regulator’s response to the court’s criticism.
Key facts
- Court
- Delhi High Court
- Judge
- Justice Amit Mahajan
- Next hearing
- November 5
- Regulator
- Food Safety and Standards Authority of India
- Products named
- Sting Energy, Adrenaline Rush and Monster Energy
- Other company affected
- Reliance Consumer Products, a subsidiary of Reliance Industries
- Earlier related order
- The court set aside the regulator’s order against Red Bull on September 29
Sources
Related news
PepsiCo, Monster Challenge India’s Energy Drink Label Restriction
Delhi High Court Lets Reliance Keep Campa Energy-Drink Label
Delhi High Court Sets Aside FSSAI Red Bull Label Order
Red Bull Challenges India’s Ban on ‘Energy Drink’ Labels
Reliance Challenges FSSAI Ban on Campa Energy Drink Label
