Guru Organic Energy is preparing a $15 million case that accuses a PepsiCo affiliate of abusing its dominant position in the beverage market.
A notice of application recently filed with the Competition Tribunal shows Guru will soon lay out a series of allegations against the Pepsi Bottling Group (Canada) ULC.
Guru has valued the case at $15 million, which it says is the amount Pepsi Bottling Group has derived from allegedly abusing its position.
The notice of application does not outline what Guru alleges Pepsi has done to abuse its position but in an April press release teasing the filing, it accused the company of using “shelf allocation to disadvantage an independent competing brand in favour of Pepsi-owned and Pepsi-affiliated products.”
The notice of application mentions concurrent civil litigation the Montreal-based energy drink manufacturer is pursuing at the Ontario Superior Court against the pop giant.
In that case, Guru similarly alleges Pepsi leveraged the energy drink company’s market share to expand its own store shelf entitlements.
Guru, which trades on the Toronto Stock Exchange, makes a wide range of mostly fruit-flavoured energy drinks with natural ingredients.
Pepsi is best known for its sodas but is also behind sparkling water brand Bubly and chip brands including Lay’s and Tostitos. It purchased Rockstar Energy in 2020 but sold its U.S. and Canadian rights to the parent company of rival Celsius in 2025.
Much of Guru and Pepsi’s recent tension stems from an agreement they signed in 2021 making Pepsi the sole distributor of Guru products for 10 years. Guru says Pepsi notified it in November 2024 that the agreement would be terminated early in May 2025.
Following the notice of termination, Guru alleges Pepsi removed its products from designated shelves in certain stores, ceased delivery of them to others, and generated “significant” out-of-stock conditions, while simultaneously requiring Guru to commit to repurchasing the inventory that Pepsi itself was withholding.
Guru also says it disclosed on a confidential basis the full specifications of its new Island Breeze drink. Weeks before the beverage’s launch, Pepsi’s Rockstar brand released a competing product called Island Bliss that Guru alleges “shares substantially similar attributes to its Island Breeze product.”
“Filing this claim is a matter of defending shareholder value on a set of issues we have attempted to resolve privately,” Guru president and chief financial officer Carl Goyette said in an April press release about the matter.
Guru’s lawsuit asks for $15 million in damages and recovery of Pepsi’s profits from the Island Bliss product, as well as $164,753 in unpaid receivables, pre- and post-judgment interest and costs.
A statement from Pepsi said that the company will vigorously defend against Guru’s claims and noted the company will not be commenting further on the matter.
Guru, however, says Pepsi has counter-sued for about $4.4 million, comprising post-termination advertising, marketing and trade spend reconciliations, inventory repurchase amounts and equipment storage charges.
Guru disagrees with many of the sums being requested by Pepsi.
This report by The Canadian Press was first published June 8, 2026.
Companies in this story: (TSX:GURU)
