PepsiCo, Monster Beverage, and Reliance Industries have secured a temporary reprieve from a ban on using the "energy drink" label on their products in India, following a ruling by the Delhi High Court. The decision came after the companies challenged an order issued in June by the Food Safety and Standards Authority of India (FSSAI), which prohibited manufacturers of high-caffeine beverages from marketing them as "energy drinks."

The court’s interim relief allows PepsiCo and Monster to continue labeling their products as energy drinks while litigation proceeds. This ruling followed a similar stay granted earlier on Tuesday to Reliance Industries and a prior ruling in favor of Austria-based Red Bull last week. The companies have argued that the FSSAI’s directive disrupted their business operations significantly, forcing the removal of large volumes of their products from shelves and causing financial damage. Reliance’s beverages division, in court filings dated October 1, described the regulatory actions as causing “substantial disruption” to their operations.

The FSSAI’s clampdown is part of a broader push on food safety across India, which has included raids, product shutdowns, and the imposition of new warning-label requirements. These measures reflect mounting concerns about the health impacts of junk foods and related products. The energy drinks market in India is expected to reach $1.6 billion by 2028, growing at around 12.6 percent annually—faster than comparable markets in the United States and China, according to Euromonitor data.

During the hearing on Reliance’s petition, the court questioned the FSSAI’s timeline and process, with a judge noting that it was “never too late” for the regulator to rectify any procedural errors. The court plans to continue hearing the cases in the coming weeks. FSSAI did not immediately comment on the matter.

Reliance, which revived its Campa brand in 2023, has leveraged its extensive retail network and competitive pricing to expand its presence in the Indian beverage sector, targeting market share from established players including Coca-Cola and PepsiCo. The beverage units of these companies have expressed concern that the ban and related enforcement actions have not only led to financial losses but have also hindered planned investments in the rapidly growing energy drinks segment.

The ongoing legal dispute underscores the challenges faced by the beverage industry amid increasing regulatory scrutiny in India’s evolving consumer market.