Reuters: Regulatory News: Energy drink makers face NY Attorney General probe - WSJ

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Energy drink makers face NY Attorney General probe - WSJ Aug 28th 2012, 06:16 Tue Aug 28, 2012 2:16am EDT Aug 28 (Reuters) - New York's Attorney General issued subpoenas in July to three firms that make energy drinks, including PepsiCo Inc, seeking information on the companies' marketing and advertising practices, the Wall Street Journal said, citing a person familiar with the matter. Investigators are examining whether the companies overstated the benefits of ingredients in the drink while understating the role of caffeine, a common stimulant that industry critics believe to be the main active ingredient, the person told WSJ. Besides Pepsi, maker of AMP, the Attorney General also sent subpoenas to Monster Beverage Corp and Living Essentials LLC, maker of 5-hour Energy drink. The latest move on the energy drink industry follows New York City Mayor Michael Bloomberg's plan to propose a far-reaching municipal ban on sales of large-size sugary beverages by restaurants, mobile food carts, movie theaters and delis. U.S. retail sales of the energy drinks rose 16 percent last year to $8.9 billion, accounting for 12 percent of the carbonated soft drink category, the Journal said, citing a report from Beverage Digest. Monster leads in the United States by volume, ahead of Austria's Red Bull GmbH and Rockstar Inc. Spokespeople for PepsiCo, Monster Beverage and Living Essentials declined to comment to the Journal. None of the companies could immediately be reached for comment by Reuters outside of regular U.S. business hours. Link this Share this Digg this Email Reprints

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