by Christopher Freeburn | January 15, 2014 12:56 pm
Monster Beverage Corporation (MNST) is facing a joint investigation in two states over how its promotes its energy drinks.
New York state’s attorney general has teamed with the city attorney of San Francisco to probe whether the energy drink-maker is trying to market the drinks to children. Monster’s energy drinks have a high caffeine content, which some experts say could be harmful to children. San Francisco’s city attorney began investigating Monster’s marketing back in 2012 and has sued the company for promoting its drinks to minors, the Associated Press notes.
Monster sued to stop the San Francisco investigation, but a federal court dismissed its suit.
The New York attorney general has subpoenaed the company. New York is currently probing the marketing practices of a number of energy drink-makers.
A spokesperson for Monster denied that its energy drinks were being marketed to children. It points out that its cans include a warning about caffeine consumption for minors and pregnant women. Monster also notes that its drinks contain less caffeine than other common drinks like coffee.
MNST stock dipped slightly in Wednesday mid-day trading. MNST stock has climbed more than 30% over the past year.
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