Reuters: U.S.: Energy drink makers face NY Attorney General probe

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Energy drink makers face NY Attorney General probe Aug 28th 2012, 17:14 By Joseph Ax and Martinne Geller Tue Aug 28, 2012 1:14pm EDT (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, a person familiar with the matter said on Tuesday. Besides Pepsi, maker of AMP, Attorney General Eric Schneiderman also sent subpoenas to Monster Beverage Corp and Living Essentials LLC, maker of 5-hour Energy drink, said the source, who declined to be identified, citing lack of authorization to speak to the media. A spokeswoman for Schneiderman declined to comment, as did PepsiCo. Living Essentials declined to comment beyond what it said in an offering memorandum in July in which it said it recently received an inquiry from a state attorney general asking for documents relating to its product and marketing. The company said in the memorandum, which was distributed in connection to a debt offering, that it was responding to the inquiry. Monster officials were not immediately available to comment. The company said earlier this month that it received a subpoena in July from an unspecified state attorney general. [ID:nL4E8JA5MG] The Wall Street Journal reported earlier on Tuesday that Schneiderman was the one investigating. Schneiderman is examining whether the companies overstated the benefits of ingredients in the drinks while understating the role of caffeine, a common stimulant that industry critics believe to be the main active ingredient, the source said. 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. Monster is the leading energy drink in the United States by volume, ahead of Austria's Red Bull GmbH and Rockstar Inc. (Additional reporting by Joy Ferguson in New York and Sakthi Prasad in Bangalore; Editing by David Holmes and Dan Grebler) Link this Share this Digg this Email Reprints

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