Earlier, a single-judge bench of Justice Amit Mahajan had stayed the FSSAI’s order asking the company not to use the term “energy drink” on its products until the next date of hearing on November 5. However, the judge had clarified that PepsiCo would not be allowed to further manufacture the products with the energy drink names.
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PepsiCo India has sought modification of this order, arguing that its competitor Red Bull India Pvt. Ltd. has been allowed by the court to sell its products with the energy name.
The company, while challenging the food safety regulator’s order, said the prohibition would have grave commercial consequences and hurt substantial investments. PepsiCo said it had 492 million bottles and 26 million cans with those labels in circulation as of July 31.
PepsiCo India also said it was not given a show-cause notice or proper hearing by the food safety regulator before the order was passed.
What is the dispute about
The food safety regulator had earlier sought responses from several beverage companies over the use of the term “energy drink” and related promotional claims.
The regulator said there was no notified standard for such products under India’s food safety regulations. It had also objected to claims suggesting that the beverages enhance energy, focus or help combat general weakness, calling them impermissible under existing laws.
(With inputs from PTI)