Nov 27 Shares in energy drink maker Monster
Beverage Corp soared more than 13 percent on Tuesday on
comments by the U.S. Food and Drug Administration that did not
suggest any immediate action against makers of the caffeinated
drinks, although the regulator will consider adding warnings and
more information on the drink labels.
The FDA said it would consider asking for disclosures on the
amount of caffeine in food products, limitations on their use
and warnings about possible side effects after it completes a
previously announced safety review of adverse events related to
energy drinks. (FDA letter:)
"Although these products have the potential to raise safety
or regulatory issues, there is a long history of safe use of
other caffeine containing products in the United States," FDA
senior advisor Michele Mital said in the letter.
The FDA comments were in response to concerns raised by
Democratic Senators Richard Blumenthal of Connecticut and Dick
Durbin of Illinois.
Monster Beverage was sued last month by parents of a
teenager who died after consuming two cans of the company's
In late October, the FDA said it was investigating reports
of five deaths that could be associated with Monster Beverage's
energy drink. The FDA also said on Nov. 14 that another caffeine
drink, 5-Hour Energy made by Living Essentials LLC, could have
been involved in 13 deaths that have occurred over the last four
Monster Beverages shares fell more than 30 percent in the
last month as investors expressed concern over potential legal
and regulatory fallout before surging on Tuesday to close up 13
percent at $51.97 on the Nasdaq.
In its letter, the FDA added that it was looking at whether
products safe for most individuals could pose risks arising from
toxic effects for young people and those with pre-existing
health issues, such as heart conditions.
The senators replied to the agency's statement, saying that
the "FDA can and should take action now to regulate energy
drinks that are marketed as beverages."