PepsiCo (PEP) told the Delhi High Court on Thursday that Sting and Adrenaline Rush, its top-selling energy drinks in India, could run out nationwide within about two months if a ban on the “energy drink” label stays in place, Reuters reported. The court again declined to let PepsiCo make new labelled stock and set the next hearing for October 30.
Red Bull has no such problem. The court set aside the food regulator’s notice against it on September 29, so it can keep making labelled cans.
Why PepsiCo Can Absorb This
PepsiCo sells beverage concentrate in India through its International Beverages Franchise segment. That whole segment, covering every franchise market rather than just India, brought in $5.00 billion in 2025, about 5.3% of PepsiCo’s $93.93 billion in total revenue.
India energy drinks are a slice of that slice.
The segment still punches above its size. Its revenue grew about 10% from 2023 to 2025, against about 3% for the whole company, and international markets made 45% of PepsiCo’s profit so far this year.
Varun Beverages Carries the Real Risk
Varun Beverages (VBL), PepsiCo’s Indian bottler, makes and sells Sting, and its stock is down about 16% in U.S. dollar terms since early June. A shortage would hit Varun’s volumes first. Monster Beverage (MNST) and Reliance Industries’ (RELIANCE) Campa Energy face the same existing-stock limit.
What PepsiCo Needs on October 30
On October 12, the appeal bench asked the single judge to explain why PepsiCo was treated differently from Red Bull, without ruling on the merits. That leaves October 30 open. PepsiCo has a fallback, though: it reportedly began making Sting without the word “energy” in August. Whether that stock reaches shelves before labelled cans run out matters more than the hearing, and Varun’s next results should give the first read.
Want to see how PepsiCo’s segments and Varun’s share price have moved through the label fight? You can pull up the same charts on TIKR for free. Learn more here.
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