CCP fines Mezan Beverages Rs150m for copying PepsiCo’s Sting

Accused of mimicking Sting’s overall design, colour combination, bottle shape, branding

A fine of Rs150 million has been imposed on Mezan Beverages (Pvt) Ltd on Friday for copying the packaging and trade dress of PepsiCo's energy drink "Sting" by the Competition Commission of Pakistan (CCP).

According to the Commission, Mezan’s energy drink ‘Storm’ mimicked Sting’s overall design, colour combination, bottle shape, and branding, creating a clear likelihood of consumer confusion. The Commission categorised this as parasitic copying, violating Section 10 of the Pakistan Competition Act 2010.

Section 10 of the Pakistan Competition Act 2010 prohibits undertakings from engaging in "deceptive marketing practices."

The Act defines deceptive practices to include: the distribution of "false or misleading information that is capable of harming the business interests of others"; the distribution of false or misleading information to consumers; "false or misleading comparison of goods in the process of advertising"; or the "fraudulent use of another's trademark, firm name, or product labelling or packaging."

The case had been pending since 2018. PepsiCo Inc. had lodged a complaint claiming that Mezan Beverages designed ‘Storm’ to closely resemble Sting and illegitimately benefit from PepsiCo’s brand reputation. Instead of addressing the merits, Mezan challenged the Commission’s authority in court, obtaining interim injunctions that repeatedly delayed the inquiry for several years.

Last year, the Lahore High Court rejected Mezan Beverages’ petition, upholding the CCP’s authority to conduct the inquiry. The court noted that Mezan used legal injunctions to stall the Commission’s proceedings and directed CCP to complete its inquiry and issue a decision.

The Competition Commission’s detailed ruling noted that Storm’s red color scheme, bold slanted white lettering, and bottle shape closely resembled Sting. These branding elements could mislead ordinary consumers. The Commission emphasised that having a registered trademark for ‘Storm’ does not exempt a company from competition law if it misleads consumers.

CCP Chairman Dr. Kabir Sidhu stated that copying brands and using misleading packaging or marketing will not be tolerated, regardless of company size, and strict action will be taken.