Delhi HC refuses immediate relief to PepsiCo over manufacturing with 'energy drink' label

The Delhi High Court on Monday declined to grant PepsiCo permission to continue manufacturing beverages containing the "energy drink" label. But the court asked a single-judge bench to explain why it had denied the company that relief.

A division bench of Acting Chief Justice Nitin Wasudeo Sambre and Justice Sanjay Sharma was hearing PepsiCo's appeal against an October 6 order that allowed the company to sell its existing stock of Sting Energy and Adrenaline Rush but barred it from manufacturing fresh products with the "energy drink" tag.

During the proceedings, PepsiCo's senior counsel argued that while the single judge had protected the company from any action over the FSSAI directive, it did not allow the company to continue manufacturing beverages under the same label.


The counsel also pointed out that similar relief had been granted to another beverage company in a different case involving Red Bull.

The division bench, however mentioned that it would not examine the merits of the dispute at this stage, considering the fact that PepsiCo's request for confirmation of interim relief was still pending before the single judge.

"What is in operation is an ad-interim relief in the matter," the court observed.

The bench noted that the October 6 order did not give specific reasons for preventing PepsiCo from manufacturing products with the "energy drink" label, especially when similar permission had been granted in the Red Bull case.

"We are prima facie of the view that the single judge has not recorded any specific reasons for not permitting the petitioner in the matter of manufacturing with the label 'energy drink', which otherwise was permissible in (the Red Bull case)," the bench said.

It directed the single judge to record the reasons within a week so that the division bench could consider the issue.

"We deem it appropriate to relegate the matter to the single judge with a direction that for observations in paragraph 13 of the order dated 6.10.2026, let there be reasons recorded so as to enable this court to deal with the issue," the court ordered.

Meanwhile, counsel for the FSSAI opposed PepsiCo's appeal, arguing that it was not maintainable.

The dispute began after the food regulator directed PepsiCo to remove the "energy drink" descriptor from its beverages and instructed food safety officers across the country to seize products containing the label.

PepsiCo argues against the directions before the Delhi High Court. On October 6, the single judge granted the company interim protection from coercive action and allowed it to clear its existing stock of beverages labelled as "energy drink".

However, the court stopped short of allowing fresh manufacturing under the same label, prompting PepsiCo to approach the division bench.

As of now, PepsiCo can continue to sell its existing stock under the protection granted by the court, but the restriction on manufacturing new products with the "energy drink" label remains in place.