Monster Beverage Corporation
) recently issued a press release responding to radiologist,
Jonas Dorner's recommendation through a paper to restrict
consumption of energy drinks. Energy drinks, under the Monster
Energy brand, represent more than 90% of the company's total
revenue. Monster claimed that some of the statements in the paper
were misleading and untrue.
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The paper was written by the trainee radiologist and presented at
the Radiological Society of North America's annual meeting.
The paper points out that the taurine in energy drinks is
beneficial for the functioning of the heart. However, it also
states that the amount of caffeine in energy drinks is three
times higher than other caffeinated drinks such as coffee and
cola and that the consumption of energy drinks should be
However, Monster Beverage claims that the statement regarding
caffeine is unsupported by data and hence misleading. It
further claims that leading energy drinks contain half the amount
of caffeine compared to coffee from companies such as
Monster Beverage has been facing several legal issues related to
the impact of its energy drinks on consumer health.
In June, the American Medical Association (AMA) House of
Delegates proposed a ban on marketing of energy drinks.
In Aug 2012, according to The Wall Street Journal, New York's
attorney general initiated a probe to determine whether leading
energy drink makers have misled their consumers about the
ingredients and nutritional value of energy drinks manufactured
by them. The investigation asked for information from three large
), Monster Beverage and Living Essentials LLC. The investigation
was to check the amount of caffeine and other artificial
ingredients added to the drinks such as fruit flavors, vitamins
B, taurine and ginseng.
Monster Beverage Corporation carries a Zacks Rank #4 (Sell). A
better ranked beverage company is
Coca-Cola Enterprises Inc.
) carrying a Zacks Rank #2 (Buy).