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Overcaffeination Concerns Haven't Dented Energy Drinks

Overcaffeination Concerns Haven't Dented Energy Drinks
Photograph by Todd Williamson/AP Photo

The Food and Drug Administration still isn’t sure whether energy drinks and supplements are bad for us, but that uncertainty doesn’t seem to be worrying consumers (who are, in any case, very adept at tuning out health advice from the government). Despite unflattering publicity and price competition, U.S. energy drink sales increased 6.7 percent to $9.7 billion in the year ended May 19, according to Symphony IRI data compiled by Bloomberg.

Take Monster Beverage, for instance: Gross sales jumped 9 percent year-over-year in April and May, and sales look “increasingly favorable in June,” Stifel analysts noted. There was cause for concern after caffeinated beverages came under scrutiny by regulators—the company reported a mere 6.5 percent increase in sales during the first quarter after eight consecutive quarters of double-digit year-on-year revenue growth—but business clearly picked up again this spring. Monster Beverage’s revenue is expected to grow 10 percent this year, according to data compiled by Bloomberg. That’s slower than the 21 percent jump in 2012 and 30.6 percent in 2011, but still impressive. The company did not respond to a request for comment.