Companies and Brands

Danger Lurking in Energy Drinks?

glass of watter
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A new study presented at a meeting of the American Heart Association analyzed seven earlier studies of the effects of energy drinks and found evidence that the beverages appear to affect a consumer’s natural heart rhythm and may lead to increased blood pressure, irregular heartbeat or even death. The high caffeine content of the drinks could be to blame.

Energy drink maker Monster Beverage Corp. (NASDAQ: MNST), along with privately held firms like Living Essentials (makers of 5-hour Energy drinks) and Red Bull have been subject to U.S. Food and Drug Administration (FDA) investigations in response to complaints that the drinks are linked to hospitalizations and death.

The new study’s lead author avoids sweeping conclusions however. Bloomberg cites him:

We need to look at the effects of long-term energy drinks consumption and see what the consequences are. Everything is good in moderation. Drink them within the limits that have been provided and be vigilant of what else you’re consuming with it.

Because the drinks are often sold as dietary supplements, they are unregulated by the FDA, even though they may contain up to 700 milligrams of caffeine, nearly 10 times the amount in a 12-ounce can of soda.

Monster Beverage claims that its own investigators earlier this month found no link between its drinks and the death of a teenager last year. The company still faces a lawsuit for the girl’s death, however, based on the report of a Maryland medical examiner that the 14-year old was the victim of “caffeine toxicity.”

Shares of Monster plunged more than 8% this morning, but are now trading down about 2.2%, at $49.23 in a 52-week range of $39.99 to $83.96.

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