India Accuses PepsiCo, Monster of Duping Consumers with 'Energy Drink' Labels

India's food regulator, FSSAI, has accused PepsiCo and Monster Beverage of "duping" consumers by marketing their high-caffeine beverages as energy drinks, according to court filings reviewed by Reuters. This action marks an escalation in the regulator's defense of a labelling ban and is part of an unprecedented food safety crackdown in India, testing the extent of its power in policing labels.

PepsiCo, which popularized energy drinks in India with its 2017 launch of 21-cent bottles of Sting, and Monster Beverage have mounted separate legal challenges against a June decision that barred the use of the term "energy drink." They argue the regulator acted without warning or providing them a chance to be heard. The FSSAI, seeking dismissal of these challenges, stated in October 28 court filings that India had never established standards for an energy drink category, asserting products are "purposely in order to dupe the consumers" marketed as such.

While the Delhi High Court last month allowed companies to exhaust their existing stock with "energy drink" labels, it prohibited the use of the label for any new stock. The legal tussle has also drawn in Red Bull, Hell Energy, and India's Reliance Consumer, part of billionaire Mukesh Ambani's Reliance. FSSAI filings highlight health concerns, citing high caffeine, sugar, and taurine—an amino acid researchers link to health problems—in these drinks. The regulator's concern is "rooted in serious public health risks and consumer deception."

The energy drinks market in India is projected to reach $1.6 billion by 2028, with sales growing 12.6% annually, a rate faster than in the US and China, according to Euromonitor. Amid global health concerns, England has announced a ban on such drinks for under-16s from April next year.

What to watch: The case is due to be heard later this week.

Editor's note: Comprehensive summary of the legal conflict, incorporating necessary figures and context from the provided source.