India Accuses PepsiCo and Monster of Misleading Consumers with Energy Drink Labels

India’s food safety regulator, FSSAI, has accused PepsiCo and Monster Beverage of misleading consumers by marketing their high-caffeine products as “energy drinks”. According to court filings reviewed by Reuters, the regulator argued that India has never established a separate regulatory category for energy drinks and alleged that the companies used the label to deceive consumers. The dispute comes amid a wider food safety crackdown as India’s energy drink market is projected to reach $1.6 billion by 2028.

PepsiCo and Monster have challenged the regulator’s June decision banning the use of the term “energy drink”, arguing that the move was made without prior warning or giving them an opportunity to present their views. The Delhi High Court has allowed the companies to sell existing stock carrying the old labels but prohibited them from using the term on newly manufactured products. Other companies, including Red Bull, Hell Energy and Reliance Consumer, have also filed legal challenges against the decision.

The FSSAI has raised concerns about the potential health risks associated with beverages containing high levels of caffeine, sugar and taurine. The regulator described consumer protection and public health as the key reasons behind its action. The case is scheduled to be heard by the Delhi High Court later this week. The development comes as other countries are also tightening restrictions, with England announcing a ban on the sale of high-caffeine energy drinks to children under 16 from April next year.

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