Monster Energy Drinks Investigated By State
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We knew energy drinks were trouble: new reports show that the Monster Energy Drink brand is being investigated by an unnamed state attorney general.
Though the SEC filing doesn't say who the state AG is, the AG is looking into the "advertising, marketing, promotion, ingredients, usage and sale" of Monster Energy Drinks, reports the Wall Street Journal. Monster Energy Drinks is the largest energy drink brand by volume of sales.
It's not the first time that the government has been wary of energy drinks; WSJ notes Senator Dick Durbin (D-Ill.) has already asked the FDA to investigate energy drinks for "potentially dangerous ingredients." And as Businessweek reminds us, everyone remembers the "black out in a can" by Four Loko; the company was forced to remove the caffeine from the drink.
Despite the warnings behind the highly caffeinated drinks, WSJ reports that energy drinks are the fastest rising sector in the beverage industry. The energy drink sector has made $8.9 billion last year, up from $7.7 billion in 2010. And despite the probe into Monster in July, net sales still rose to $592.6 million. That's a whole lot of bucks — we'll have to see if the probe will force the company to change its drink, like the death of Four Loko.
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