Delhi HC Stays FSSAI Order Against PepsiCo, Monster Over 'Energy Drink' Label, Allows Sale Of Existing Stock

New Delhi [India], October 6: The Delhi High Court on Tuesday stayed the Food Safety and Standards Authority of India (FSSAI) order against PepsiCo and Monster Beverages over the use of the “Energy Drink” descriptor on their products and allowed the companies to sell their existing stock carrying the label.

Justice Amit Mahajan, however, clarified that the interim relief does not allow the companies to manufacture fresh products bearing the “Energy Drink” descriptor. The stay will remain in force until the next hearing on November 5. “Your existing stock will be sold,” the court said.

PepsiCo manufactures Sting Energy and Adrenaline Rush, while Monster Beverages sells Monster Energy. Both companies had challenged the FSSAI directions asking them to remove the “Energy Drink” label from their products. The regulator had also directed food safety officers across the country to take enforcement action, including seizure of such products.

FSSAI cites industry meeting

During the hearing, Advocate Suransh Chaudhary, appearing for FSSAI, told the court that a meeting was held with the industry body in July after the regulator issued its directions. He said the industry body had agreed to remove the “Energy Drink” descriptor.

Chaudhary also submitted that this development was not brought to the court’s notice during the proceedings concerning Reliance Consumer Products Ltd’s Campa Energy Drink or in the case relating to Red Bull.

Senior Advocate Sandeep Sethi, appearing for PepsiCo, submitted that the company had a valid licence to manufacture the products. He further said that any concession to remove the “Energy Drink” descriptor was made under protest.

Justice Mahajan observed that since orders had already been passed in the Campa and Red Bull matters, FSSAI could move appropriate applications in those proceedings seeking correction.

Relief for Reliance

Earlier in the day, Justice Mahajan had also stayed the FSSAI order against Reliance Consumer Products Ltd, which directed the company to remove the “Energy Drink” descriptor from Campa Energy Drink – Gold Boost. The court also stayed the consequential July 17 communication directing food safety authorities across States and Union Territories to enforce the order.

The court had granted relief to Reliance after noting that the FSSAI direction was issued without a show-cause notice or an opportunity of hearing to the company.

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Similar proceedings before court

The dispute relates to FSSAI’s action concerning the use of the term “Energy Drink” on certain caffeinated beverages. The High Court is also dealing with similar proceedings involving other beverage companies. Monster Beverages was represented by Advocate Sandeep Das, while PepsiCo was represented by Senior Advocate Sandeep Sethi.

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