Is There a Monster Beverage Corp (MNST) Under Your Child’s Bed?

Monster Beverage Corp (NASDAQ:MNST) is under attack again.

San Francisco’s city attorney is suing the energy drink maker, alleging that Monster is marketing its caffeinated beverages to children and young teens.

Monster and its heavily caffeinated adrenaline-boosting beverages have come under fire since legislators and the FDA began looking into product safety concerns last year.

These 12 Stocks Could be Top Gainers in 2013Monster Beverage Corp (NASDAQ:MNST) has naturally defended itself, and it hasn’t been afraid to call others out in the past.

Back in February, the country’s largest energy drink maker by volume called out Starbucks Corporation (NASDAQ:SBUX) and McDonald’s Corporation (NYSE:MCD) in its quarterly conference call.

Monster pointed out how Starbucks’ mid-sized grande coffee serving contains more than double the caffeine of its own similar 16-ounce can. Given the popularity of Frappuccino, iced coffees, and other chilled beverages with young consumers, one can argue that both Starbucks Corporation (NASDAQ:SBUX) and Monster Beverage Corp (NASDAQ:MNST) are major players in caffeinated refreshment.

“Even McDonald’s — one of the largest restaurant chains in the U.S. — has been remodeling their stores to provide coffee drinks, both hot and cold, in many flavors, varieties, and efficacy,” Monster’s CEO said during the call.

McDonald’s Corporation (NYSE:MCD) already gets plenty of heat for marketing junk food to children through its Happy Meal offerings, but are any of these chains doing enough to make sure that their products aren’t seen as appealing to children?

Monster Beverage Corp (NASDAQ:MNST) can stand by its successful history. It has sold more than 11 billion cans of energy drinks, and rival Red Bull has moved far more than that. You don’t see toddlers walking aimlessly down the street sipping Monster Energy cans out of paper bags. There are a few fatalities that some have been trying to tie to Monster consumption, but there hasn’t been any conclusive findings. Monster remains readily available.

We’ll have to see how this new attack plays out. Many scientists and health professionals believe that children’s lower body mass makes them less tolerant to caffeine. That’s a knock on Monster Beverage Corp (NASDAQ:MNST), but it’s also something that any coffee pourer will need to keep in mind.

The new lawsuit alleges that Monster promoting an extreme sports lifestyle does make it more appealing to young consumers, but it’s not as if we’re talking about an animated cigarette-smoking camel here.

The attacks on Monster Beverage Corp (NASDAQ:MNST) may never truly end. The beverage giant just needs to make sure that the same thing applies to its growth rate.

The article Is There a Monster Beverage Under Your Child’s Bed? originally appeared on Fool.com and is written by Rick Munarriz.

Longtime Fool contributor Rick Munarriz has no position in any stocks mentioned. The Motley Fool recommends and owns shares of McDonald’s, Monster Beverage, and Starbucks.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Best Travel Destinations in Australia

World’s Most Expensive Musical Instruments

World’s Most Famous Animals

Most Expensive Cakes in the World

Most Expensive Kosher Champagne in the World

Most Expensive Kosher Wine in the World

The Most Surprisingly Dark Fairy Tales

Most Popular Travel Destinations in Asia

The 10 Most Expensive Dresses Ever Worn to the Oscars

World’s Most Visited Art Museums

Best Countries for Photographers to Work in

Best Paid Jobs in the Film Industry

The Most Renowned Recovered Paintings Ever

Child Stars That Turned out Just Fine

Books That Were Banned in the Past Century

World’s Richest Dancers

Best Remedies against Bad Breath

Foods That Improve Your Skin Texture

Best-Selling Children’s Books of all Time

Foods That Boost Your Libido

Best-Selling Books of all Time

The Most Expensive Academy Awards Jewelry in History

Most Expensive Japanese Restaurant In New York City

The Best B-Boy Movies

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

The Most Successful Reality TV Stars

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!