Mezan Beverages slapped with Rs150m fine

The Competition Commission of Pakistan (CCP) has imposed a fine of Rs150 million on Mezan Beverages (Private) Limited, as the company was found to have copied the packaging and trade dress of PepsiCo's 'Sting' energy drink. 

In the involvement of deceptive marketing practices in violation of Section 10 of the Competition Act, 2010, the CCP held that Mezan's 'Storm energy drink copied the overall look, feel, colour scheme, bottle design, and branding elements of Sting, creating a likelihood of consumer confusion at the point of sale.

Earlier in 2018, PepsiCo Inc. filed a complaint claiming that Mezan’s Storm energy drink was designed to imitate Sting and benefit from PepsiCo’s goodwill.

In response to the allegations, Mezan Beverages repeatedly challenged the CCP's jurisdiction and initiated prolonged litigation. 

In June 2024, the Lahore High Court (LHC) dismissed Mezan’s petition, upheld the CCP’s authority, and ruled that early challenges to show-cause notices were not maintainable. The court also clarified that proceedings under the Competition Act are separate from trademark cases.

Allegations against Mezan Beverages 

In its detailed order, the CCP found that Mezan’s Storm energy drink adopted:

1. A red-dominant colour scheme identical to Sting
2. Bold, slanted white lettering with aggressive visual motifs
3. Near-identical bottle shape and presentation
4. Branding elements are likely to mislead an ordinary consumer with imperfect recollection

The commission noted that deception is assessed based on the overall commercial impression, not minute differences examined side by side, even though Mezan Beverages has a registered trademark for 'Storm' energy drink. 

While imposing a fine of Rs150m, the commission said that copycat branding and misleading packaging will not be tolerated, regardless of the size or local status of the company.