PepsiCo Warns India Energy Drink Ban Could Empty Shelves in Two Months
PEP is trading near its 52-week low of $123.47 (5.1% above the low).
Summary
PepsiCo told the Delhi High Court that the FSSAI ban on the 'energy drink' label could leave its top-selling products out of stock nationwide within two months. The court again refused to let PepsiCo resume manufacturing with the label, while rival Red Bull secured a reprieve last month and can continue selling. PepsiCo's lawyer said competitors are able to manufacture while PepsiCo is stuck with already-printed cans and a distribution system at risk. The next hearing is October 30, keeping the regulatory overhang on PepsiCo's India energy drink business, which includes Sting and Adrenaline Rush. Monster is similarly affected but PepsiCo is the primary party in this court action.
At the time of this announcement, PEP was trading at $129.74 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $176.2B. The 52-week trading range was $123.47 to $171.48. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Reuters.