Monster Beverage Corp (MNST), PepsiCo, Inc. (PEP): Will an Energy Drink Ban Impact the Soda Market?

Will energy drinks fail?

If a ban on energy drinks goes through, stores will be unable to sell energy drinks to consumers under the age of 18. Will this impact stock valuation? Earnings could decrease, since many energy drink consumers are under the age of 18; those consumers also are rarely the ones to do the household grocery shopping, however. It would not impact the college-age and twenty-something demographic of energy drink consumers.

Gas stations and vending machines may be the biggest change for energy drinks if a ban goes in place. With teens no longer able to purchase Monster Beverage Corp (NASDAQ:MNST), Red Bull, or Full Throttle while out on the town with friends, sales may be impacted.

In the meantime, Coca-Cola and Pepsi will still hold the market, as they have for more than a century. The beverage market may change over time, but these two companies always hold strong.

Stephanie Faris has no position in any stocks mentioned. The Motley Fool recommends Coca-Cola, Monster Beverage, and PepsiCo. The Motley Fool owns shares of Monster Beverage and PepsiCo.

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