just On Call - Energy drinks feel heat from media glare - Monster CEO
Monster's CEO is confident sales will bounce back
The head of Monster Beverage Corp has admitted the media glare has “taken its toll” on energy drinks.
Rodney Sacks, CEO of the California-based group, told investors yesterday (8 May) there was a “dampening” on energy drinks as previously double-digit quarterly sales growth dropped to 6.5% in its first quarter. However, he said consumers are starting to see past negative press on health fears in the category.
“Consumers just continue to see the same stories being repeated over and over in different ways but without really having any real substance to them,” Sacks said. “We'll be able to overcome that and the growth will resume.”
Monster is suing San Francisco's attorney general, Dennis Herrera, after he launched a probe into the company's alleged marketing to children.
The group is also facing a lawsuit from the family of a 14 year-old girl who died after allegedly drinking two 24oz cans of Monster, while the US FDA is investigating reports of five deaths that may be associated with Monster's beverages.
Sacks said he believes supermarkets such as Wal-Mart are allocating more shelf space to energy drinks because of strong consumer demand. “We believe that will continue,” he said.
Meanwhile, Sacks praised the group's launch in Romania and Albania last month and said it will “commence sales in India shortly”.
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