WASHINGTON — Executives from three major energy drink companies defended their marketing procedures and remained adamant that they are not targeting children and teenagers through advertising campaigns.
Rodney Sacks, CEO of Monster Beverage Corp., Janet Weiner, CFO of Rockstar, Inc., and Red Bull North America Vice President Amy Taylor told the Senate Commerce Committee that their target market is age 18 and higher.
“While the company believes that its products are safe for all consumers, I would like to emphasize that we do not market Monster to children, and have never done so,” said Sacks. “The company does not focus its brand initiatives on young teenagers. To do so would undermine the credibility of the brand image in the eyes of young adults.”
Energy drinks are considered dangerous for the combination of caffeine, herbal stimulants and high levels of sugar they contain.
According to the FDA, 400 milligrams of caffeine per day—the rough equivalent of four eight-ounce cups of coffee— are considered an amount “not generally associated with dangerous, negative side effects.”
Experts conclude that around 100 milligrams per day for teens meets the same level of safety, but no concrete, magic number has been established. A 16-ounce can of Rockstar’s original energy drink contains 160 milligrams of caffeine.
The American Beverage Association stipulates that energy drink companies should not market beverages for mixing with alcohol, may not market to children, should not be sold or marketed in K-12 schools, and should not promote their beverages as sports drinks.
“I can say firmly that Red Bull has not and will not market to children,” said Taylor.
Some senators at the hearing said energy drink companies are able to market to a younger demographic through alternative means that don’t directly violate ABA policies.
“We’re getting the same runaround from the energy drink companies. They are openly advertising to kids and denying it,” said Sen. Dick Durbin, D-Ill. “These companies know what they are doing. They have kids with disposable income who can get hooked on their products.”
Sen. Ed Markey, D-Mass., agreed with Durbin’s assessment, saying “we are going to continue to focus on this issue because we think there has to be a dramatic change in the marketing practices of this industry.”
At the request of congressional leaders, Sacks, Weiner and Taylor offered to look into limiting their product sizes to 12 ounces or less, but made no firm commitments. The executives said the financial effects on this restriction would have to be studied first before any changes could be carried out.
“We believe that large can sizes are a primary part of the problem,” said Amy Taylor. “We believe that this is where we and the rest of the industry can play a huge role.”
The hearing took place as the energy drink industry has come under fire for an increase in hospitalizations related to over-consumption of its products.
According to a Substance Abuse and Mental Health Services Administration report, the number of emergency room visits involving energy drinks more than doubled from 2007 to 2011.
And in the first six months of 2013, U.S. poison centers received nearly 1,600 reports of exposures to energy drinks, according to American Association of Poison Control Center data. Sixty-two percent of those reports involved youth under 18.
“It is increasingly clear that children and adolescents are targets as well as victims of marketing aimed to encourage frequent, repetitive use of energy drinks without any attempt to provide education as to potential risks by the beverage manufacturers,” said Marcie Schneider of the American Academy of Pediatrics.
During the hearing, Sen. Richard Blumenthal, D-Conn., grilled Rodney Sacks about his company’s “Monster Army” athlete development program. In the past, Monster Army has sponsored kids younger than age 10 in extreme sports such as motocross and BMX. Sacks noted that Monster no longer sponsors athletes under the age of 13.
Blumenthal stated that in sponsoring young athletes Monster is appealing directly to the very demographic it denies targeting.
“I find the denials of marketing to children to be difficult to accept,” said Blumenthal. “The facts and common sense show that the marketing to kids has been open and blatant and relentless.”
But according to Sacks the purpose of Monster Army is not marketing, but rather to groom young athletes in preparation for a professional career in an extreme sport.
“Ultimately it is an important [athletic] development program we use,” said Sacks.