![]() ![]() No link was found between the deaths and the beverage consumption. Food and Drug Administration have exonerated the company. Why did sales growth slow down? The fall in revenue is blamed on bad press that has come from five people dying after drinking Monster energy drinks over the past year. This was Monster's slowest period for revenue growth since 2010. Sales missed the analysts' average estimate by 14% at $578.4 million. Third-quarter income increased to $86.1 million by 4.6% year-over-year, up from $82.6 million. The news was good, but worse than expected. Monster Beverage stock plunged by 11% upon the announcement of disappointing third-quarter sales. Regardless, this bad press does not make you want to gulp down a Monster energy drink. Nothing has been proven so far, and any connections are no more than allegations or speculation at this point. A Red Bull energy drink has 80 mg of caffeine. If caffeine is more concentrated, it is required to be reported. The FDA said that the common soft drink should contain no more than 71 milligrams of caffeine in every 12 ounces to ensure safe caffeine levels. ![]() beverage companies to indicate caffeine levels are safe if they exceed a certain concentration. Food and Drug Administration requires U.S. Though it could be found that there is no meaningful connection between these medical issues and the consumption of energy drinks, there is a risk that some connection could be established. Rockstar recorded no fatalities, but was identified in 13 incidents. Monster drink had 40 reports, including five fatalities and 20 hospital check-ins. Red Bull was mentioned in 21 event reports, including four incidents of hospitalizations. In summary, 5-Hour Energy drink was linked to 92 incidents that included 33 hospitalizations and 13 deaths. With incidents dating back to 2004, the report included incidents associated with drinks like 5-Hour Energy, Monster Beverage ( MNST) and Rockstar. Problems that coincided with consuming energy drinks included increased heart rate and abdominal pains. Food and Drug Administration released a list of reported health problems which were somehow associated or connected to energy drinks. Investors should require low valuations to compensate for this bad publicity and any legal risks that may come from these tragic events. Whether true or false, there are many suspicions and allegations about health problems associated with energy drinks. But investors should exercise caution before buying in. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.Energy drinks may seem like a great growth market for non-alcoholic beverage firms. When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. The Rockstar deal comes on the heels of other notable, recent acquisitions by Pepsi including a $705 million deal for Chinese online snack-food company Hangzhou Haomusi Food earlier this year, a $465 million buyout of CytoSport (the maker of Muscle Milk products) in 2019, and a $3.2 billion deal to acquire SodaStream in 2018. With soda sales slipping and the energy drink market still expanding at an impressive clip, the move makes a lot of sense for PepsiCo - and the Rockstar brand could benefit from having the beverage leader's resources behind it. Pepsi has been on an acquisition spree as it seeks to add products that can better position its business for long-term growth. The beverage giant hasn't succeeded in launching a major brand in the fast-growing energy drink market, and acquiring Rockstar should create new opportunities in the category. Rockstar trails behind Red Bull and Monster in the energy drink market, but the acquisition still looks like a smart move for PepsiCo. ![]() What does the Rockstar acquisition mean for PepsiCo? ![]()
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