Food Business News - December 18, 2012 - 35

BEVERAGEBUSINESSNEWS
Coca-Cola invests in Core Power shakes
ATLANTA — Coca-Cola Co. is buying a stake in the maker of the Core Power dairy-based protein shake. The company, along with Select Milk Producers, Inc., a cooperative of dairy farmers, has created a new business entity called Fair Oaks Farm Brands, L.L.C., which is a health

December 18, 2012

Energy beverages
under additional scrutiny
WASHINGTON — Congressman Edward J. Markey of Massachusetts, senior member of the Energy and Commerce Committee, sent a letter late last month to the Federal Trade Commission (F.T.C.) requesting an investigation of advertising claims made by energy drinks such as 5-hour Energy, Monster Energy and Rockstar Energy. In a Nov. 30 letter Mr. Markey said the claims on the drinks may be in violation of the Federal Trade Commission Act as “unfair or deceptive.” In making his case, Mr. Markey cited a recent story in The New York Times in which 13 deaths allegedly have been linked to 5-hour Energy. He added that some of the claims made by energy drinks, such as they will “fix the feeling of tired,” “allow you to do more,” make the consumer “sharper and more alert” and provide “hours and hours of energy,” have not been substantiated by the Food and Drug Administration. “The advertising claims made by energy drink manufacturers are particularly alarming in light of the increase in advertisements targeted primarily to children and teenagers,” Mr. Markey said. “Accordingly, I believe an investigation of the claims made by these companies would fall within the Federal Trade Commission’s mandate as stipulated in Section 5 of the Federal Trade Commission Act with respect to protecting Americans from ‘unfair or deceptive acts or practices.’” Mr. Markey noted that the F.T.C. in the past has successfully investigated and took action against claims made by alcohol-containing energy drinks found to be engaging in unsafe, deceptive marketing claims. “I believe an investigation into energy drinks that do not contain alcohol and are often targeted at children may be warranted at this time,” he said. Mr. Markey requested the F.T.C.’s response to three questions: • Does the F.T.C. believe that the varied health, function and safety claims made by manufacturers of energy supplements constitutes a violation of Section 5 of the F.T.C.A., which outlaws unfair or deceptive trade acts or practices? If yes, how? If not, why not? • If the commission does believe that such trade practices may constitute potential violations of the Act, what actions, if any, is the F.T.C. taking in response to this matter? • Please describe the manner in which the F.T.C. coordinates its efforts with the F.D.A. or other federal agencies that share jurisdiction or responsibilities in this area. To the extent that such coordination efforts are formalized, please also provide copies of any relevant memoranda of understanding or other similar documents. Mr. Markey’s letter to the F.T.C. came about a week after the publication of a letter sent by the F.D.A. to Senators Richard J. Durbin of Illinois and Richard Blumenthal of Connecticut. In the letter, the F.D.A. acknowledged that energy drinks containing caffeine and other ingredients are a relatively new class of products, and although the products have the potential to raise safety or regulatory issues, there is a long history of safe use of other caffeine-containing products in the United States. “F.D.A. is aware, however, that new products and patterns of use require us to remain vigilant, and we are working to strengthen our understanding of the nature of ‘energy drinks’ and any casual risks to health,” Michele Mital, acting associate commissioner for legislation at the F.D.A., wrote in a letter dated Nov. 21. BBN

and wellness company that produces and markets value-added nutrition products. “At The Coca-Cola Co., we strive to provide people with a wide range of beverage choices that meet every occasion and lifestyle need,” said Steve Cahillane, president and chief executive officer of CocaCola Refreshments. “This new investment led by our Venturing and Emerging Brands group is another great example of our ambition to be the best brand, sales and customer service system in North America.” The companies said the investment is supportive of the potential they see in offering value-added health and wellness beverages. “Our leadership in technology, innovation and sustainability within the dairy industry combined with The Coca-Cola Co.’s brand development and distribution capabilities will enable a new portfolio of nutritional beverages with strong growth potential,” said Mike McCloskey, co-founder and chief executive officer of Select Milk Producers. Core Power is currently distributed by Coca-Cola Refreshments and is available in 26-gram and 20-gram protein versions. BBN

December 18, 2012

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Food Business News - December 18, 2012

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