Energy Drinks Have Doctors Worried—But Business Is Booming

Total Page:16

File Type:pdf, Size:1020Kb

Energy Drinks Have Doctors Worried—But Business Is Booming The Brief with soda and coffee, says Amelia Arria, MORE ‘NATURAL’ HIGHS? Energy drinks have director of the University of Maryland Many energy drinks contain School of Public Health’s Center for ingredients other than doctors worried—but caffeine that may perk you Young Adult Health and Development. up. Here are some other business is booming Indeed, energy drinks have been linked things that may be adding to to more hospital visits than coffee or the buzz. By Alexandra Sifferlin soda, says Arria. “Why it’s different, we still need to know. Scientists and clini- GINSENG This ancient root is a Heather Chace, a biology teacher at Stroud cians have real concerns.” stimulant. The National High School in Oklahoma, says she first started noticing Institutes of Health (NIH) her students occasionally drinking energy drinks about In the U.S., when spinach gets contam- caution that caffeine and six years ago. Now she sees them chugging them on a daily inated with salmonella or ice cream car- panax ginseng should not basis—leading to conversations about their “hearts racing” ries listeria, manufacturers yank them be taken in combination, saying this “might cause and their “feeling shaky,” she says. from supermarket shelves and shoppers serious problems, including They’re not alone. About 50% of adolescents consume are alerted. But when an energy drink is increased heart rate and high energy drinks, according to a recent report in Pediatrics, and blamed for sending someone to the hos- blood pressure.” 31% do so on a regular basis, increasingly opting for energy pital, the regulatory and public-health GUARANA drinks over soda. It’s no surprise, given that a March 2015 re- aftermath is murky. This plant naturally contains port in the Journal of Nutrition Education and Behavior showed That’s in part because of the way en- large amounts of caffeine, that over 46% of energy-drink ads on TV aired on channels that ergy drinks are regulated. Companies so its presence in an energy appeal to adolescents, like MTV, Fuse and BET, helping put can market a product as a dietary sup- drink increases the drink’s the U.S. energy-drink business on track to grow more than 11% plement or as a food, neither of which total caffeine content, by 2019, to an estimated $26.6 billion in annual revenue. But requires premarket safety approval according to the NIH. as the industry booms, so does concern about whether energy by the FDA. TAURINE drinks are safe for kids and teenagers. Another challenge is that it’s hard for The amino acid that supports The Center for Science in the Public Interest has called public-health experts to prove defini- brain development occurs on the U.S. Food and Drug Administration to add safety tively that energy drinks are safe—or naturally in the body and is generally thought to be warnings on energy-drink unsafe—for everyone who drinks them. safe in the amounts used in bottles. Senators Edward ‘We just don’t It would be considered unethical to de- supplements and drinks. In Markey, Dick Durbin and see the same sign a study in which scientists wait to large amounts, however, it Richard Blumenthal have see if people have dangerous reactions may increase heart rate and safety concerns cause nervousness. called for a ban on mar- with coffee. With to a product. Energy drinks are also keting to minors. And the hard to study because their ingredient American Academy of Pedi- energy drinks, blends are often proprietary, so scien- atrics went so far as to say scientists and tists don’t know exactly how much of a energy drinks have “no place clinicians have given ingredient is in the can or bottle. in the diet of children and real concerns.’ The FDA does collect consumer adolescents.” Their reason- AMELIA ARRIA, health complaints: supplement com- ing: unlike coffee and soda, University of Maryland panies are required by law to file such many energy drinks con- reports, whereas beverage makers are tain two or more stimulants, including the natural-sounding asked to do so voluntarily. But when supplements guarana and ginseng. How all these ingredients those reports are filed with the FDA, work together is unknown, but many experts say it appears they are not automatically made avail- to be a risky mix. able to consumers or even scientists. A 2010 study, for example, found that sugar-free energy TIME learned through a Freedom “In the absence of a therapeutic ben- companies told TIME they do not mar- teens will be resolved anytime soon. For drinks affected the heart in a way that scientists think in- of Information Act request that from efit [from energy drinks], the only ac- ket their products to kids. now, the FDA says it will continue look- creases the risk of adverse heart events in susceptible people. January 2012 to November 2014, the ceptable number of adverse events is But some critics aren’t buying it. ing into the safety of caffeine in food Other research says the drinks make it harder for kids to pay FDA received 224 adverse-event reports zero,” says Dr. Steven Lipshultz, pedia- For instance, Monster hosts a social- products, including energy drinks. “As attention in school; scientists recently found that middle from energy-drink companies, includ- trician in chief at Children’s Hospital of networking site called the Monster part of our review,” agency spokesper- schoolers who consume sugary energy drinks are 66% likelier ing 5-Hour Energy, Full Throttle, Jolt Michigan. “We are not at zero.” Army, where kids as young as 13 post son Theresa Eisenman says, “we are to display symptoms of hyperactivity than those who don’t. Energy Drink, Monster Energy, Nos, The American Beverage Association, photos of themselves doing things like considering the current state of the sci- And a handful of lawsuits are under way alleging that popular Red Bull, Rockstar, AMP Energy and a trade group that represents energy- skateboarding in Monster gear. “A web- ence for potential health effects ... with brands such as Monster and Red Bull have been responsible Venom Energy. Six of them reported drink companies, says many of these site that says ‘Join my club’ is not geared an emphasis on specific populations, for the deaths of minors. In some cases, the people who died that a death had occurred. (Because products bear voluntary warnings that to adults,” says Dr. Marcie Schneider, such as pregnant women or children.” had an underlying heart condition. of the nature of the reports, no more they’re not recommended for children, co-author of the AAP statement on In the meantime, Oklahoma teacher Energy-drink companies say their products are safe and information is available about those pregnant or nursing women or peo- energy drinks. Chace says she advises students to be contain no more caffeine than a cup of coffee. But experts are cases, including how many of them ple sensitive to caffeine. Representa- It’s unlikely that the question of careful—and doesn’t allow any drinks seeing problems with energy drinks that they just don’t see involved minors.) ANDREW B. MYERS FOR TIME tives from Red Bull, Monster and other energy drinks’ safety for children and besides water in her classroom. 22 Time July 6–13, 2015 23.
Recommended publications
  • DR PEPPER SNAPPLE GROUP ANNUAL REPORT DPS at a Glance
    DR PEPPER SNAPPLE GROUP ANNUAL REPORT DPS at a Glance NORTH AMERICA’S LEADING FLAVORED BEVERAGE COMPANY More than 50 brands of juices, teas and carbonated soft drinks with a heritage of more than 200 years NINE OF OUR 12 LEADING BRANDS ARE NO. 1 IN THEIR FLAVOR CATEGORIES Named Company of the Year in 2010 by Beverage World magazine CEO LARRY D. YOUNG NAMED 2010 BEVERAGE EXECUTIVE OF THE YEAR BY BEVERAGE INDUSTRY MAGAZINE OUR VISION: Be the Best Beverage Business in the Americas STOCK PRICE PERFORMANCE PRIMARY SOURCES & USES OF CASH VS. S&P 500 TWO-YEAR CUMULATIVE TOTAL ’09–’10 JAN ’10 MAR JUN SEP DEC ’10 $3.4B $3.3B 40% DPS Pepsi/Coke 30% Share Repurchases S&P Licensing Agreements 20% Dividends Net Repayment 10% of Credit Facility Operations & Notes 0% Capital Spending -10% SOURCES USES 2010 FINANCIAL SNAPSHOT (MILLIONS, EXCEPT EARNINGS PER SHARE) CONTENTS 2010 $5,636 NET SALES +2% 2009 $5,531 $ 1, 3 21 SEGMENT +1% Letter to Stockholders 1 OPERATING PROFIT $ 1, 310 Build Our Brands 4 $2.40 DILUTED EARNINGS +22% PER SHARE* $1.97 Grow Per Caps 7 Rapid Continuous Improvement 10 *2010 diluted earnings per share (EPS) excludes a loss on early extinguishment of debt and certain tax-related items, which totaled Innovation Spotlight 23 cents per share. 2009 diluted EPS excludes a net gain on certain 12 distribution agreement changes and tax-related items, which totaled 20 cents per share. See page 13 for a detailed reconciliation of the Stockholder Information 12 7 excluded items and the rationale for the exclusion.
    [Show full text]
  • What's All the Buzz About?
    Table of Contents Executive Summary 2 Findings in Brief 2 Recommendations 4 Background 5 Investigation 7 Findings 8 Finding #1 8 Finding #2 11 Finding #3 15 Finding #4 17 Finding #5 20 Conclusions and Recommendations 23 List of Tables and Figures TABLE 1: Key differences between the federal regulation of dietary 8 supplements and beverages TABLE 2: Energy drinks, even those produced by the same company, are 9 represented inconsistently in the market as both dietary supplements and regular beverages TABLE 3: Energy drinks contain a varied amount of caffeine that is 12 inconsistently represented on the label FIGURE 1: Comparison of similar sized energy drink caffeine concentrations 13 TABLE 4: Company responses on marketing practices and warning labels 16 included on energy drink products TABLE 5: Energy drinks make a range of advertising claims relating to 19 functional benefits TABLE 6: Ingredients commonly used in energy drink products 21 1 Executive Summary The term “energy drinks” generally represents a class of products in liquid form that contains high levels of caffeine frequently combined with other stimulants and specialty ingredients. The spike in the number of energy drinks in the marketplace and the frequency in which these products are marketed to children and teens raises serious questions, both about the safety of this class of products and whether they fulfill their claims to consumers. Recently, the Food and Drug Administration (FDA) released a series of adverse event reports of illness, injury and death allegedly linked to the consumption of products marketed as energy drinks. The FDA also is currently investigating energy drinks.
    [Show full text]
  • Sports Nutrition & Weight Loss Report
    Sports Nutrition & Weight Loss 2011 Report An analysis of markets, trends, competition and strategy in the U.S. sports nutrition and weight loss market NBJ’s Sports Nutrition & Weight Loss Report 2011 2 www.nutritionbusinessjournal.com ©2011 Penton Media, Inc. Table of Contents 2.1. ACKNOWLEDGEMENTS ................................................................................................................................................... 15 2.2. RESEARCH METHODOLOGY ............................................................................................................................................. 15 2.2.1. Disclaimer ........................................................................................................................................................ 16 2.2.2. Copyright ......................................................................................................................................................... 16 2.3. DEFINITIONS ................................................................................................................................................................. 16 2.3.1. SNWL Categories ............................................................................................................................................. 16 2.3.2. Product Categories .......................................................................................................................................... 19 2.3.3. Sales Channels ................................................................................................................................................
    [Show full text]
  • Evaluating Sugary Drink Nutrition and Marketing to Youth Methods
    Evaluating Sugary Drink Nutrition and Marketing to Youth Methods Sugary Drink FACTS: Evaluating Sugary Drink Nutrition and Marketing to Youth Authors: Jennifer L. Harris, PhD, MBA Marlene B. Schwartz, PhD Kelly D. Brownell, PhD Johanna Javadizadeh, MBA Megan Weinberg, MA Vishnudas Sarda, MBBS, MPH Christina Munsell, MS, RD Carol Shin, MBA Fran Fleming Milici, PhD Amy Ustjanauskas Renee Gross Sarah Speers Andrew Cheyne, CPhil Lori Dorfman, DrPH Priscilla Gonzalez, MPH Pamela Mejia, MS, MPH Rudd Center for Food Policy and Obesity October, 2011 Acknowledgements We would like to thank the following people for their valuable assistance in collecting data: Susannah Albert-Chandhok Ryan Gebhard Darina Nghiem Josh Baker Eliza Gombert Eunie Park Kate Barnett Jay Imus Angel Reese Kelly Barrett Heather Kaplan Hannah Sheehy Casey Carden Carly Litzenberger Jennifer Shin Robert Dowding Benjamin Lovell Ashita Soni Ashley Firth, MA Lisa Martinez, MPH Kate Stearns We would also like to thank our steering committee and other advisors: Doug Blanke, JD Dale Kunkel, PhD Mary Story, PhD, RD Frank Chaloupka, PhD Tim Lobstein, PhD Stephen Teret, JD, MPH Thomas Farley, MD, MPH Susan T. Mayne, PhD Ellen Wartella, PhD Sonya A Grier, PhD, MBA C. Tracy Orleans, PhD James G. Webster, PhD Corinna Hawkes, PhD Lisa M. Powell, PhD Walter Willett, MD, DrPH Shiriki Kumanyika, PhD, MPH Amelie Ramirez, DrPH Jerome D. Williams, PhD Thank you to our colleagues at the Rudd Center, especially Andrea Wilson, Megan Orciari, and Tricia Wynne We thank Cavich Creative, LLC, and Chris Lenz for their assistance in preparing the manuscript and website. Finally, we thank the leadership and staff at the Robert Wood Johnson Foundation, with special thanks to the Childhood Obesity Team.
    [Show full text]
  • Download the EK Beverage Company Master Product List
    EK Beverage Company Master Product List EKBC Case Case Suggested Unit $$ Retail Item # Description Price Quantity Retail Cost Profit Margin 5 Hour Energy 12/2oz 71700 5 Hour Energy Berry 12/2oz $28.85 12 $2.99 $2.40 $0.59 20% 71705 5 Hour Energy Extra 12/2oz $28.85 12 $2.99 $2.40 $0.59 20% Aqua Hydrate 24/500ml PET 89160 Aqua Hydrate Water 4/6/500ml PET $18.70 24 $1.29 $0.78 $0.51 40% Arizona 24/15.5oz Cans 101141 15.5oz - Arizona Green Tea 24/15.5oz Cans $18.10 24 $1.00 $0.75 $0.25 25% 101142 15.5oz - Arizona Lemon Tea 24/15.5oz Cans $18.10 24 $1.00 $0.75 $0.25 25% 101144 15.5oz - Arizona Peach Tea 24/15.5oz Cans $18.10 24 $1.00 $0.75 $0.25 25% 101145 15.5oz - Arizona Raspberry Tea 24/15.5oz Cans $18.10 24 $1.00 $0.75 $0.25 25% Arizona 24/23.5oz Cans Arizona Arnold Palmer 24/23.5oz Cans 10119 .99 CAN-23.5oz - Arizona AP Half & Half Green 24/23.5oz Cans $17.99 24 $0.99 $0.75 $0.24 24% 10136 .99 CAN-23.5oz - Arizona AP Half & Half Black 24/23.5oz Cans $17.99 24 $0.99 $0.75 $0.24 24% 10143 .99 CAN-23.5oz - Arizona AP Half & Half Zero 24/23.5oz Cans $17.99 24 $0.99 $0.75 $0.24 24% 10144 .99 CAN-23.5oz - Arizona AP Half & Half Pink Southern Style 24/23.5oz Cans $17.99 24 $0.99 $0.75 $0.24 24% 10145 .99 CAN-23.5oz - Arizona AP Half & Half Peach 24/23.5oz Cans $17.99 24 $0.99 $0.75 $0.24 24% 10153 .99 CAN-23.5oz - Arizona AP Strawberry 24/23.5oz Cans $17.99 24 $0.99 $0.75 $0.24 24% Arizona Half and Half 24/23.5oz Cans 10134 .99 CAN-23.5oz - Arizona Half & Half Tropical 24/23.5oz Cans $17.99 24 $0.99 $0.75 $0.24 24% 10135 .99 CAN-23.5oz - Arizona
    [Show full text]
  • View Annual Report
    7UP A&W AGUAFIEL BIG RED CANADA DRY CLAMATO COUNTRY TIME CRUSH DEJA BLUE DR PEPPER HAWAIIAN PUNCH IBC MISTIC MOTT’S MR AND MRS T NANTUCKET NECTARS PEÑAFIEL RC COLA REALEMON REALIME ROSE’S SCHWEPPES SN APPLE SQUIRT STEWART’S growingwithflavor DR PEPPER SNAPPLE GROUP 2009 ANNUAL REPORT SUNDROP SUNKIST SODA TAHITIAN TREAT VENOM ENERGY VERNORS WELCH’S YOO-HOO Our Leading Flavor Portfolio At Dr Pepper Snapple Group, we are growing with flavor — and what’s more, flavors are growing as a percentage of carbonated soft contents drinks (CSDs). Having gained steadily on colas over the past two decades, flavors took the letter to stockholders 1 lead in 2009 and now represent 50.4 percent leading with brands 5 of all CSD retail sales in measured channels. distribution and availability 8 FLAVORS AS % OF U.S. CSD SALES strengthening the foundation 11 commitment to csr 12 49.6% 54.0% stockholder information 139 54.6% 57.8% Colas 60.8% 50.4% 45.4% 46.0% Flavors 39.2% 42.2% On top of that, our CSDs outperformed the ’89 ’94 ’99 ’04 ’09 industry in both volume and dollar sales Source: Nielsen estimates in 2009, demonstrating the strength and resilience of our brands amid softness in the category. As the undisputed leader in flavors, Dr Pepper Snapple Group is capitalizing on this momentum. We now hold more % CHANGE VS. 2008 than a 40 percent dollar share of the flavor U.S. Volume Sales U.S. Dollar Sales category, up 1.7 percentage points in 2009. DPS +7.0% DPS 40.3% +4.2% 2009 Total CSDs 38.6% Total CSDs +0.8% 2008 -2.5% Source: The Nielsen Company +1.7% We invite you to experience a taste of our achievements and the ways in which DPS U.S.
    [Show full text]
  • Energy Drinks: Help, Harm, Or Hype?
    GSSI Page 1 of 11 Print Article SSE #84: Energy Drinks: Help, Harm, or Hype? Leslie Bonci, M.P.H., R.D. 08/27/2006 Sports Science Exchange 84 VOLUME 15 (2002) NUMBER 1 "ENERGY" DRINKS: HELP, HARM OR HYPE? Leslie Bonci, M.P.H., R.D. Director, Sports Medicine Nutrition Department of Orthopedic Surgery and the Center for Sports Medicine University of Pittsburgh Medical Center Nutritionist, Pittsburgh Steelers Pittsburgh, Pennsylvania KEY POINTS Many products marketed as energy drinks contain high concentrations of carbohydrate and some caffeine. Some energy drinks contain herbs, amino acids, protein, and other substances, usually in such small amounts that they are unlikely to have any noticeable effect on performance. The content of some of these products may result in inefficient absorption of fluid and nutrients from the intestine, with the possibility of gastrointestinal distress. Many energy drinks are quite costly and, because of their composition, are not suitable for use by athletes. Athletes should be educated about these products and guided towards other foods and fluids that will not pose potential risks. INTRODUCTION Athletes who train hard and frequently often complain about "energy drain" and fatigue. Because they are regularly reminded to consume adequate fluids and fuel to minimize early fatigue and to maximize performance and recovery, the concept of an "energy" drink—fluid and energy together in one bottle—is very appealing. Having more energy can improve one's capacity for work, a very desirable characteristic for all and especially for active individuals. However, in addition to good hydration and sufficient food energy, an athlete needs adequate rest, frequent meals or snacks, and optimal consumption of carbohydrates to help feel energized.
    [Show full text]
  • Estta627719 09/17/2014 in the United States Patent And
    Trademark Trial and Appeal Board Electronic Filing System. http://estta.uspto.gov ESTTA Tracking number: ESTTA627719 Filing date: 09/17/2014 IN THE UNITED STATES PATENT AND TRADEMARK OFFICE BEFORE THE TRADEMARK TRIAL AND APPEAL BOARD Proceeding 91199986 Party Defendant Monster Energy Company Correspondence MATTHEW S BELLINGER Address KNOBBE MARTENS OLSON & BEAR LLP 2040 MAIN STREET, FOURTEENTH FLOOR IRVINE, CA 92614-8214 UNITED STATES [email protected], [email protected], [email protected], [email protected] Submission Other Motions/Papers Filer's Name Matthew S. Bellinger Filer's e-mail [email protected], [email protected] Signature /Matthew S. Bellinger/ Date 09/17/2014 Attachments 2014-09-17-FINAL DECL OF BROADHURST IN SUPP OF APP'S MSJ- HANBEV.921M.pdf(104624 bytes ) BROADHURST DECL EXHIBIT 1 PART 1 OF 5 DEC 11, 2013 REPORT-HAN- BEV.921M.pdf(1456221 bytes ) BROADHURST DECL EXHIBIT 1 PART 2 OF 5 DEC 11, 2013 REPORT-HAN- BEV.921M.pdf(930856 bytes ) BROADHURST DECL EXHIBIT 1 PART 3 OF 5 DEC 11, 2013 REPORT-HAN- BEV.921M.pdf(5490992 bytes ) BROADHURST DECL EXHIBIT 1 PART 4 OF 5 DEC 11, 2013 REPORT-HAN- BEV.921M.pdf(4764366 bytes ) BROADHURST DECL EXHIBIT 1 PART 5 OF 5 DEC 11, 2013 REPORT-HAN- BEV.921M.pdf(2663953 bytes ) TTAB Opposition No. 91199986 (Parent) USA Nutraceuticals Group, Inc. v. Monster Energy Company EXHIBIT 1 PART 1 OF 5 Declaration of Norman N. Broadhurst in Support of Applicant’s Motion for Summary Judgment TTAB Opposition No. 91199986 (Parent) USA Nutraceuticals Group, Inc. v. Monster Energy Company Expert Report of Norman Broadhurst I.
    [Show full text]
  • Buying for Workplace Equality 2016 a Few Ways You Can Help Fight Dear for Equality Every Day: Friends,Take Action for Equality
    5 A Guide To Companies, Products And Services That Support Lesbian, Gay, Bisexual And Transgender Workplace Inclusion BUYING FOR WORKPLACE EQUALITY 2016 A FEW WAYS YOU CAN HELP FIGHT DEAR FOR EQUALITY EVERY DAY: FRIENDS,TAKE ACTION FOR EQUALITY Share this information with your friends, family and co-workers. Help them become supporters of workplace equality by factoring the information from this guide into 1 purchasing decisions. Advocate for equality in the work- place. If your company isn’t on this list or you think it can do better, go to www.hrc.org/cei to find out how to 2 engage your employer. Get active about equality. Sign up for newsletters and Action Alerts at 3 www.hrc.org/workplace. 1 The maxim that the customer is always right has never been truer in today’s hyper- connected global market. Consumers can publicly praise or criticize businesses they patronize with the click of a button and influence friends’ and strangers’ purchasing behaviors. Businesses cannot afford to ignore the increasingly savvy and engaged consumer. As consumers, you know that you have a choice. And with this Buying for Workplace Equality guide, providing the most accurate review of a business’s workplace policies toward lesbian, gay, bisexual and transgender employees, we hope that you feel empowered to make those purchasing decisions that are most important to you. This year’s guide includes results from the 2016 Corporate Equality Index, which features 407 businesses that scored a perfect 100 percent. All scores are based on the same set of criteria, rating 40 LGBT-related policies, benefits and corporate practices among the largest US businesses.
    [Show full text]
  • Donor: Le Dipping Parlor Spas Value: $8,500
    Premier Items Items Valued over $1,000 will appear in the Premier or Live Auction. Some single listed items may be packaged together for the silent auction. Show Stoppers...Place your bid on this Clydesdale mare and foal from Soaring Eagle Farms in Springfield, MO. This pair will be competing at the World Clydesdale Finals in Madison, WI in October of 2011. Donor: Wil Fischer Companies Value: $20,000 'RQ¶WIHHOOLNH\RXKDYHWRUDFHWRJHWWR\RXUQH[WORFDWLRQVWD\RQWRSRIWKHWLPHZLWKWKLV6WDLQ less Steel Cosmograph Daytona Rolex Watch! Donor: Woody Justice Value: $15,000 Great things come in pairs like this pair of gorgeous Alpacas from Morning Moon Alpacas in Mt. 9HUQRQ02)HDWXUHGKHUHLV6DPDULDJHDQGKLVEURWKHU,FDUXV\HDUVROG'RQ¶WPLVVRXW on your chance to bid on these two at the ball. Donor: Morning Moon Alpacas Value: $10,000 Turn up the heat in this great new Sundance 780 Series Dover hot tub. With its beautiful Aq- uaSheer waterfall, LED-lighted footwell, molded beverage holders, and highly effective SMT jet variations, the Dover rises above other hot tubs. *May be traded in for a more customized spa of your choice. Donor: Le Dipping Parlor Spas Value: $8,500 Do you feel lucky? Up for auction is a Citori One Millionth Commemorative Receiver with high polished blued steel receiver. This shotgun is specially engraved commemorating the one mil- lionth Citori with gold and silver enhancement. Donor: Ray's Sporting Goods, Inc. Value: $5,500 Protect you and your family with this 5-6 person certified steel storm shelter measuring 4'x6'x6'4. This shelter can be placed in the interior of your home to keep you from having to go outdoors to reach safety.
    [Show full text]
  • Monster Beverage (MNST)
    The Henry Fund Henry B. Tippie College of Business Willow Miller [[email protected]] Monster Beverage Corp. October 19, 2020 Consumer Staples – Energy Drinks Stock Rating BUY Investment Thesis Target Price $90-$95 Monster Beverage Corp. (Monster) is a BUY because we see an upside of Henry Fund Adjusted DCF $80 12.5% between our target price ($90) and the market price ($80). Henry Fund DDM $97 Consequently, we believe that Monster’s price to earnings premium Relative Multiple $57 (39.5x) is warranted given the attractive nature of the company’s Price Data business model, debt structure, profitability, and growth prospects. Current Price $80.8 52wk Range $50.6 – $87.1 Drivers of Thesis Consensus 1yr Target $88 • We project topline to grow by a 10% 5 year CAGR, which is stronger Key Statistics than industry (7.3% 5 year CAGR9) growth, since we believe Monster’s Market Cap (B) $43.2 “healthy” product launches and continued international expansion, Shares Outstanding (M) $527.6 combined with dominating international market share, will drive long Institutional Ownership 65.7% term growth Beta 0.98 • Monster has a more attractive business model, compared to its public Dividend Yield 0.0% peer group, with asset light operations and zero long term debt, Est. 5yr CAGR Growth 8.0% which enables strong cash flows Price/Earnings (TTM) 39.5 • Soft beverage branded energy drinks have failed to capture Price/Earnings (FY1) 33.5 significant market share from Monster, and we expect this trend to Price/Sales (TTM) 8.3 continue since consumers develop
    [Show full text]
  • ENERGY DRINKS: FACTORS THAT INFLUNCE COLLEGE STUDENTS' CONSUMPTION Nameer Nassir Faris Southern Illinois University Carbondale, [email protected]
    Southern Illinois University Carbondale OpenSIUC Theses Theses and Dissertations 5-1-2014 ENERGY DRINKS: FACTORS THAT INFLUNCE COLLEGE STUDENTS' CONSUMPTION Nameer Nassir Faris Southern Illinois University Carbondale, [email protected] Follow this and additional works at: http://opensiuc.lib.siu.edu/theses Recommended Citation Faris, Nameer Nassir, "ENERGY DRINKS: FACTORS THAT INFLUNCE COLLEGE STUDENTS' CONSUMPTION" (2014). Theses. Paper 1399. This Open Access Thesis is brought to you for free and open access by the Theses and Dissertations at OpenSIUC. It has been accepted for inclusion in Theses by an authorized administrator of OpenSIUC. For more information, please contact [email protected]. ENERGY DRINKS: FACTORS THAT INFLUENCE COLLEGE STUDENTS’ CONSUMPTION by NAMEER NASSIR FARIS Bachelor of Medical and Health Technology/ Public Health Department Baghdad- Iraq, 2004 A Thesis Submitted in Partial Fulfillment of the Requirements for the Master Degree in Public Health Department of Health Education and Recreation In the Graduate School Southern Illinois University Carbondale MAY, 2014 THESIS APPROVAL ENERGY DRINKS: FACTORS THAT INFLUENCE COLLEGE STUDENTS’ CONSUMPTION By Nameer Nassir Faris A Thesis Submitted in Partial Fulfillment of the Requirements for the Degree of Master in the field of Public Health Education Approved by: Dr. Kathleen J. Welshimer, Chair Dr. Stephen Brown Dr. Roberta Ogletree Graduate School Southern Illinois University Carbondale December 20, 2013 AN ABSTRACT OF THE THESIS ENERGY DRINKS: FACTORS THAT INFLUENCE COLLEGE STUDENTS’ CONSUMPTION Nameer Nassir Faris, for the Master degree in PUBLIC HEALTH, presented on December 20, 2013, at Southern Illinois University Carbondale. TITLE: ENERGY DRINKS: FACTORS THAT INFLUNCE COLLEGE STUDENTS’ CONSUMPTION MAJOR PROFESSOR: Dr.
    [Show full text]