What happens to 'energy drinks' after Campa, PepsiCo get interim court relief against FSSAI label ban? | Explained

As Reliance’s Campa, PepsiCo and Monster receive interim relief from the Delhi High Court against an FSSAI order prohibiting them from marketing high-caffeine beverages as “energy drinks”, the question remains: What happens to the existing stock?

The Food Safety and Standards Authority of India’s (FSSAI) action against potentially misleading claims suffered a temporary setback on Tuesday after the Delhi High Court granted interim relief to Reliance Consumer Products in its dispute with the regulator over the use of the term “energy drink” on high-caffeine Campa beverages.

With PepsiCo, Reliance’s Campa and Monster now receiving interim relief, questions remain about what happens to products already in stores, as well as stocks that were withdrawn or seized following FSSAI’s direction. Can they continue to be sold or automatically return to shelves?

What did the Delhi High Court say?

On Tuesday, Reliance Consumer Products moved the Delhi High Court, seeking relief from the FSSAI order prohibiting the company from marketing products under its Campa brand as “energy drinks”. The court questioned the food safety regulator over its directive and asked why the company had not been issued a notice before the order was passed. Further, the court told FSSAI that it was “never too late” to correct its mistake.

The court clarified that the temporary relief applies only to products already manufactured and does not permit the companies to produce new batches carrying the “energy drink” label. The stay will continue until the next hearing on 5 November.

What did the companies say?

According to its petition, Reliance argued that state authorities had seized Campa stock and directed e-commerce platforms to delist the products. Both Reliance and PepsiCo informed the court that they would suffer huge losses due to FSSAI’s order.

Reliance Consumer Products told the Delhi High Court that its existing stock included 168 million cans and 120 million plastic bottles marked as “energy drink”. The company also had packaging carrying the same description ready for a further 400 million cans and 360 million bottles.

PepsiCo said that 492 million bottles and 26 million cans bearing the disputed label were in circulation as of 31 July.

What happens to the existing stock?

In the present case, the Delhi High Court has allowed the companies to sell their existing stock carrying the disputed label. However, they cannot manufacture new batches bearing the description while the interim arrangement remains in force.

Ashwin Bhadri, founder and CEO of Equinox Labs, explains that food packaging is planned months in advance, and by the time a dispute reaches the courts, products may already be sitting in warehouses, with distributors or on retail shelves. Businesses must then determine whether the stock should be held, recalled, reworked, relabelled or allowed to remain in circulation, with substantial costs potentially passing through the supply chain.

FSSAI order: What we know

The dispute between the beverage brands and the food safety regulator stemmed from a 30 June order in which FSSAI directed companies selling high-caffeine beverages to stop using “energy drinks” and related terms. Further, it gave the companies three months to revise their product labels and packaging accordingly.

The disagreement centres on whether drinks containing high levels of caffeine may be promoted and labelled as “energy drinks”. While the regulator has moved to limit the use of the term, manufacturers contend that altering their established labels could result in substantial financial losses.

About the Author

Swati Gandhi is a digital journalist with over four years of experience, specialising in international and geopolitical issues. Her work focuses on foreign policy, global power shifts, and the political and economic forces shaping international relations, with a particular emphasis on how global developments affect India. She approaches journalism with a strong belief in context-driven reporting, aiming to break down complex global events into clear, accessible narratives for a wide readership.<br><br> Previously, Swati has worked at Business Standard, where she covered a range of beats including national affairs, politics, and business. This diverse newsroom experience helped her build a strong grounding in reporting, while also strengthening her ability to work across both breaking news and in-depth explanatory stories. Covering multiple beats early in her career has helped her be informed about her current work, allowing her to connect domestic developments with wider international trends.<br><br> At Live Mint, she focuses on international and geopolitical issues through a business and economic lens, examining how global political developments, foreign policy decisions, and power shifts impact markets, industries, and India’s strategic and economic interests.<br><br> She holds a Bachelor’s degree in English (Honours) from the University of Delhi and a Master’s degree in Journalism and Mass Communication from Guru Gobind Singh Indraprastha University. Her academic training has shaped her emphasis on precision, analytical rigour, and clarity in writing. Her interests include global political economy and the intersection of geopolitics with business.<br><br> Outside work, Swati focuses on exploring her passion and love for food. From fancy cafes to street spots, Swati explores food like a true foodie.

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