Besides Pepsi, maker of AMP, Attorney General Eric Schneiderman also sent subpoenas to Monster Beverage Corp and Living Essentials LLC, maker of the 5-Hour Energy drink, said the source, who declined to be identified, citing lack of authorization to speak to the media.  The New York State Attorney General issued subpoenas in July to three firms that make energy drinks, including PepsiCo Inc, seeking information on the companies' marketing and advertising practices, a person familiar with the matter said on Tuesday. The latest move on the energy drink industry follows New York City Mayor Michael Bloomberg's plan to propose a far-reaching municipal ban on sales of large-size sugary beverages by restaurants, mobile food carts, movie theaters and delis. Energy drinks, which can have less caffeine per ounce than strong coffee, make up a fast-growing sector of an otherwise stagnant market for carbonated soft drinks. Monster is the leading U.S. energy drink by volume with nearly 39 percent of the U.S. market, but Austria's Red Bull has the highest share by revenue, due to its premium price. Spokespeople for PepsiCo, Monster and Living Essentials declined to comment. Investigators are examining whether the companies overstated the benefits of exotic-sounding ingredients while understating the role of caffeine, a common stimulant that industry critics believe to be the main active ingredient, that person said. Monster shares were down less than 1 percent at $59.51 in afternoon trade on the Nasdaq. California-based Monster disclosed in an Aug. 9 Securities and Exchange Commission filing that it received a subpoena in July as part of an unnamed state attorney general's probe into the "advertising, marketing, promotion, ingredients, usage and sale" of its energy drinks. Living Essentials also declined to comment beyond its July offering memorandum in which it said that it had recently received an inquiry from a state attorney general asking for documents relating to its product and marketing.
– New York state's attorney general apparently is a little skeptical about the wonder claims of three popular energy drinks. Eric Schneiderman issued subpoenas to three big players—Monster Beverage; PepsiCo, maker of AMP; and Living Essentials, maker of 5-Hour Energy drink, report the Wall Street Journal and Reuters. The subpoenas request information about how the companies market the drinks, which are carbonated and high in caffeine. Critics say the drinks provide all their boost thanks to that caffeine, even if advertisements would lead you to believe it's a result of added vitamins and other healthy-sounding ingredients. Energy drinks are big money-makers for the soft-drink industry, but they're also more loosely regulated than traditional soda, notes the Journal. "You're better off drinking a cup of coffee," says one analyst of the beverages at ConsumerLab.com.