Pakistan fines Mezan Beverages US$0.54M for copying PepsiCo’s sting packaging

PAKISTAN — The Competition Commission of Pakistan (CCP) has imposed a Rs150 million (US$535,000) penalty on Mezan Beverages (Private) Limited after ruling that the company engaged in “deceptive marketing practices” by imitating the packaging of PepsiCo’s popular energy drink, Sting.

The case, originally filed by PepsiCo in 2018, alleged that Mezan’s ‘Storm’ energy drink was intentionally designed to mimic Sting’s overall trade dress and visual identity in order to benefit from the multinational’s brand recognition.

According to the CCP, the similarities extended beyond colour choice to include typography, bottle shape, and stylistic motifs that could mislead an average consumer.

Rather than address the substance of the complaint, Mezan Beverages challenged the CCP’s jurisdiction, securing multiple stay orders from the Lahore High Court in 2018 and 2021.

These actions delayed regulatory proceedings for years, a practice analysts say remains common in Pakistan’s business environment, where enforcement of competition law is often stalled by prolonged litigation and procedural challenges.

The legal deadlock was broken in June 2024 when the Lahore High Court dismissed Mezan’s petition and upheld the CCP’s authority.

The court ruled that challenges to show-cause notices at early stages were not maintainable and criticised Mezan for using litigation as a tool to delay accountability.

Following the ruling, the CCP resumed its inquiry and concluded that Mezan had indeed engaged in parasitic copying.

“The company was found to have imitated the packaging and trade dress of PepsiCo’s Sting energy drink,” the CCP said in its statement, noting that such conduct violated Section 10 of the Competition Act, 2010.

The commission emphasized that deceptive marketing is assessed on the “overall commercial impression” created for consumers rather than fine-grained visual comparisons.

Although Mezan held a registered trademark for the brand name ‘Storm’, the CCP stressed that trademark registration does not grant a licence to mislead consumers.

“Copycat branding and misleading packaging will not be tolerated, regardless of the size or local status of the company,” the regulator said.

The ruling is significant in a market where enforcement of anti-deception and consumer protection rules is often inconsistent.

It follows an uptick in regulatory attention on misleading packaging and unfair marketing practices.

In late 2023, the CCP initiated investigations into similar trade-dress disputes in the snacks and bottled drinks categories, with several cases still under review.

Industry observers say the decision could serve as a precedent for stronger enforcement against imitation packaging, a longstanding issue in the region’s FMCG sector, and may push manufacturers toward clearer, more distinctive branding strategies to avoid regulatory scrutiny.

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