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What is the story about?
India's food regulator has accused PepsiCo and Monster Beverage of marketing their high-caffeine beverages as energy drinks to “dupe” consumers, according to court filings reviewed by Reuters, escalating its defence of a ban on the labelling term.
The legal battle is part of an unprecedented food safety crackdown in India and is seen as a test of how far the regulator can go in policing product labels. The energy drinks market is expected to be worth $1.6 billion by 2028, with sales growing 12.6% annually, faster than in the US and China, according to Euromonitor.
PepsiCo, which popularised energy drinks in India with the 2017 launch of its 21-cent bottle of Sting, and Monster Beverage have filed separate legal challenges against a June decision barring the use of the term “energy drink”. They have argued that the regulator acted without prior warning or giving the companies an opportunity to be heard.
The Food Safety and Standards Authority of India (FSSAI), seeking dismissal of the challenges, said India had never established standards for an energy drink category.
“Purposely in order to dupe the consumers, a product is being marketed as a 'Energy Drink',” the FSSAI said in court filings dated October 28.
The Delhi High Court last month allowed the companies to sell their existing stock carrying “energy drink” labels but barred them from using the label on new stock.
Health concerns flagged
PepsiCo and Monster did not respond to Reuters' queries, while the FSSAI also did not comment. The case is due to be heard later this week.
The dispute has also led to lawsuits from Red Bull, Hell Energy and India's Reliance Consumer, part of billionaire Mukesh Ambani's Reliance group.
The latest court filings show the regulator highlighting the health implications of energy drinks, saying they contain high levels of caffeine and sugar, as well as taurine, an amino acid that researchers say can contribute to health problems.
“The regulatory concern is rooted in serious public health risks and consumer deception,” the FSSAI said in its filings.
Amid growing health concerns globally, England has announced a ban on the sale of such drinks to children under 16 from April next year.
The legal battle is part of an unprecedented food safety crackdown in India and is seen as a test of how far the regulator can go in policing product labels. The energy drinks market is expected to be worth $1.6 billion by 2028, with sales growing 12.6% annually, faster than in the US and China, according to Euromonitor.
PepsiCo, which popularised energy drinks in India with the 2017 launch of its 21-cent bottle of Sting, and Monster Beverage have filed separate legal challenges against a June decision barring the use of the term “energy drink”. They have argued that the regulator acted without prior warning or giving the companies an opportunity to be heard.
The Food Safety and Standards Authority of India (FSSAI), seeking dismissal of the challenges, said India had never established standards for an energy drink category.
“Purposely in order to dupe the consumers, a product is being marketed as a 'Energy Drink',” the FSSAI said in court filings dated October 28.
The Delhi High Court last month allowed the companies to sell their existing stock carrying “energy drink” labels but barred them from using the label on new stock.
Health concerns flagged
PepsiCo and Monster did not respond to Reuters' queries, while the FSSAI also did not comment. The case is due to be heard later this week.
The dispute has also led to lawsuits from Red Bull, Hell Energy and India's Reliance Consumer, part of billionaire Mukesh Ambani's Reliance group.
The latest court filings show the regulator highlighting the health implications of energy drinks, saying they contain high levels of caffeine and sugar, as well as taurine, an amino acid that researchers say can contribute to health problems.
“The regulatory concern is rooted in serious public health risks and consumer deception,” the FSSAI said in its filings.
Amid growing health concerns globally, England has announced a ban on the sale of such drinks to children under 16 from April next year.
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