PepsiCo Warns of Energy Drink Shortages in India Within Two Months
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Khushi Jain
- October 16, 2026
PepsiCo has warned that its popular energy drink brands could face nationwide stock shortages within two months if restrictions on the use of the “energy drink” label continue. The warning raises concerns about potential supply disruptions in India’s growing energy drink market.
The company told the Delhi High Court that it remains unable to manufacture products carrying the disputed label. Meanwhile, rival Red Bull has secured temporary relief from the regulatory order.
The warning came on Thursday after the Delhi High Court declined to allow PepsiCo to resume manufacturing drinks labelled as energy drinks. The restriction follows an order issued by the Food Safety and Standards Authority of India (FSSAI) in June, directing manufacturers of high-caffeine beverages to stop using the term amid concerns over potential health risks.
During the hearing, PepsiCo’s lawyer, Sandeep Sethi, warned that supplies could dry up within a couple of months. He also noted that competitors were able to continue manufacturing their products.
Red Bull obtained interim relief from the regulator’s order last month. However, PepsiCo, Monster and Reliance Consumer remain restricted to selling existing inventory carrying the disputed label, putting their ability to replenish supplies at risk.
Packaging Restrictions Threaten Distribution
The dispute presents operational challenges for PepsiCo, whose Sting brand has become a prominent player in India’s energy drink market. The company also sells Adrenaline Rush in the country.
According to market researcher Euromonitor, the segment expanded significantly following Sting’s launch in 2017. Its Rs 20 plastic bottles have gained popularity among consumers aged 15 to 19, as well as in rural markets.
PepsiCo told the court that restarting production under revised labelling requirements would be a lengthy process, particularly because cans bearing the existing branding have already been purchased and printed.
“That will play havoc with our entire distribution system,” Sethi added.
The dispute centres on the extent of FSSAI’s authority to regulate product classification and labelling in India’s expanding energy drink market. The outcome could affect manufacturers’ packaging, production schedules and distribution arrangements.
The court has not yet ruled on the merits of the regulatory restrictions. The next hearing is scheduled for October 30.
FAQs
1. Why has PepsiCo warned of energy drink shortages in India?
PepsiCo warned that its energy drink brands could face nationwide stock shortages within two months if restrictions on the “energy drink” label continue.
2. Which regulator issued the labelling restrictions?
The Food Safety and Standards Authority of India (FSSAI) issued the order in June.
3. Which PepsiCo energy drink brands are mentioned in the article?
PepsiCo sells Sting and Adrenaline Rush in India.
4. Which companies have been affected by the restrictions?
PepsiCo, Monster and Reliance Consumer remain restricted to selling existing inventory carrying the disputed label, while Red Bull has secured interim relief.
5. When is the next court hearing scheduled?
The next hearing is scheduled for October 30.
