Pepsico FSSAI Row: A few months ago, FSSAI, India’s main regulator for the FMCG industry, ordered multiple beverage brands to stop using the ‘energy drink’ term in their marketing. Now, PepsiCo’s attorney, Sandeep Sethi, informed the Delhi High Court during a hearing that the continued ban might lead to a stock shortage in India. The remarks came as the Delhi High Court refused to grant a reprieve to the beverage giant.
Pepsico FSSAI Row: Beverage Giant Warns of Stock Shortage in India
During a hearing held this afternoon, PepsiCo’s attorney, Sandeep Sethi, informed the Delhi High Court that the company might exhaust its stock of products labeled as “energy drink” within around two months if it is not allowed to continue production under the current designation.
Sethi warned the court, “There will be no goods in the market after a couple of months,” emphasizing the possible consequences for supply. He further asked why competing manufacturers were still permitted to produce while PepsiCo faced restrictions, remarking, “My competitors are able to manufacture.”
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PepsiCo argued that altering the product’s packaging and resuming manufacturing under a new label would be a drawn-out and complex undertaking. The company has already put money into packaging supplies featuring the current description, and overhauling its production and distribution systems might cause supply interruptions in several markets.
Pepsico FSSAI Row: Why FSSAI Restricted Use of ‘Energy Drink’ Label?
The dispute arises from FSSAI’s attempts to impose stricter rules on how high-caffeine beverages are labeled and promoted. In June 2026, the food regulator instructed beverage manufacturers to stop using the term “energy drink” on the products in question, sparking worries about possibly deceptive product descriptions and health claims.
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