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New York Investigates Energy-Drink Makers

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By: Sean Moloughney

Editor, Nutraceuticals World

An article in the Wall Street Journal stated that New York’s attorney general is investigating the lucrative energy-drink industry to determine if it is deceiving consumers with misstatements about the ingredients and health value of its products.

WSJ reported subpoenas were issued to PepsiCo Inc., (the maker of AMP) Monster Beverage Corp., and Living Essentials LLC (the maker of 5-Hour Energy drink) in July that requested information related to the companies’ marketing and advertising practices.

Specifically, WSJ said “investigators are examining whether the companies overstated the benefits of exotic-sounding ingredients while understating the role of caffeine, a common stimulant that industry critics believe to be the main active ingredient,” and the probe is “focused on whether the drink makers are misleading consumers with inaccurate labeling and advertising, according to the person familiar with the matter.”

The investigation is in the early stages and could expand to other companies.
The probe follows the May declaration by New York City Mayor Michael Bloomberg to restrict the sale of large sodas at restaurants, movie theaters and other locations.
 

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