A federal lawsuit by
Monster Beverage Corporation
) against San Francisco City Attorney Dennis Herrera was
dismissed by the U.S district court. The lawsuit was filed to
stop the City Attorney from conducting investigation and
statewide litigation against the company for marketing
highly-caffeinated energy drinks to children. This judgment will
allow the state to proceed with the litigation against the
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According to the City Attorney, pediatric studies indicate that
highly caffeinated energy drinks are harmful for children and
claimed that the company needs to change its marketing strategy.
The marketing of energy drinks should not target young children
Monster Beverage has been facing several legal issues related to
the impact of its energy drinks on consumer health.
We note that, 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 companies, namely
), Monster Beverage and Living Essentials LLC. The investigation
was intended to check the amount of caffeine and other artificial
ingredients added to the drinks such as fruit flavors, vitamins
B, taurine and ginseng.
However, earlier this month, Monster Beverage claimed that
leading energy drinks contain half the amount of caffeine
compared to coffee from companies such as
Monster Beverage Corporation carries a Zacks Rank #4 (Sell). A
better ranked company in the beverage sector is
Dr Pepper Snapple Group Inc.
), carrying a Zacks Rank #2 (Buy).