Search results: energy drinks advertising

The COVID-19 pandemic has pointed out how the higher risk of complications and death among members of minority groups.  The reasons are fairly well established.  Members of minority groups are more likely to:

• Be overweight
• Have diet-related risk factors: hypertension, type-2 diabetes, multiple metabolic problens
• Live in high-pollution areas
• Have asthma
• Suffer from the daily stress of discrimination
• Lack sick leave benefits
• Have poor health care

The .latest report from Rudd Center on Food and Obesity Policy, Sugary Drinks FACTS 2020, highlights how sellers of sugary drinks target their products to minority populations.  The press release says that the report found:

• In 2018, companies spent $84 million to advertise regular soda, sports drinks, and energy drinks on Spanish-language TV, an increase of 8% versus 2013 and 80% versus 2010.
• Sports drink brands disproportionately advertised on Spanish-language TV, dedicating 21% of their TV advertising budgets to Spanish-language TV, compared to 10% on average for all sugary drinks.
• Compared to White children and teens, Black children saw 2.1 times as many sugary drink ads and Black teens saw 2.3 times as many. Black youth exposure was particularly high for sports drinks, regular soda, and energy drinks.

Click here for the full report. 

• Sugary Drink FACTS 2020 Supplement: Examples of social media campaigns targeted to teens and Hispanic and Black youth
• Sugary Drink FACTS 2020 Appendix Tables
• Sugary Drink FACTS 2020 report summary

The report’s main finding:

CNN has an excellent account of this, in which I am quoted.

Experts say soda companies have also taken a page out of the tobacco industry’s marketing playbook, by providing funding for many Black communities and endeavors “in ways that don’t look like advertising, like funding playgrounds in minority neighborhoods, minority community groups, and sponsorship of Black and Hispanic sports figures,” said Marion Nestle, who also authored “Eat, Drink, Vote: An Illustrated Guide to Food Politics.”  “These work,” Nestle said. “Minority kids identify soda brands with sports figures, and minority community groups find it hard to oppose soda company marketing when the companies have been so generous.”

“The great irony of Ramon Laguarta’s promises to counter PepsiCo’s conscious or unconscious racist practices in the company, its business, and communities is that none of them addresses targeted marketing,” said Nestle.

“The best thing Pepsi could do to improve the health of its customers would be to stop advertising and marketing to children and teenagers, especially those of color,” Nestle added.

I am an avid follower of NutraIngredients-USA.com, a daily newsletter for the food industry.  Today, it collects its recent articles on energy drinks in one place.

• Monster Beverage Corporation: Alarmist DAWN report is highly misleading
• Legislators seek info from energy drink manufacturers
• Shot in the arm: The secret to success in shots… without going head to head with 5-Hour Energy…
• Majority of caffeine-containing supplements have inaccurate labels, claims study
• New Canadian caffeine limits part of growing pressure on energy drink sector
• Monster hit with another suit over advertising, caffeine content
• Senators tilt at Red Bull as FDA hints at energy action
• Durbin seeks meeting with FDA following 5-Hour adverse events news
• 5-Hour Energy: Adverse event reports do not prove that our shots caused 13 deaths
• New lawsuit targets Monster and its ‘dangerous and potentially lethal’ ingredient: EGCG
• Third time’s the charm: Durbin, Blumenthal call on FDA to investigate energy drinks
• Lawyer urges FDA to ban energy drink sales to minors after US teen death
• California company looking to create ‘synergy’ beverages category

The makers of energy drinks have managed to get away with positioning these products as healthier alternatives to regular soft drinks.

They also have gotten away with being able to add vitamins and minerals to them that the FDA would not permit in regular Coke or Pepsi.

Unfortunately for them, some manufacturers upped the caffeine to the point where it might be making people sick.  Illnesses among energy drink users have focused attention on these products.

Are energy drinks the new frontier for food advocacy?  I think so, and I’m guessing NutraIngredients-USA does too.

 A few months ago, the Committee on Nutrition of the American Academy of Pediatrics published  a position paper on sports and energy drinks in the diets of children and adolescents.

The committee distinguished sports from energy drinks:

Sports drinks: beverages that may contain carbohydrates, minerals, electrolytes, and flavoring and are intended to replenish water and electrolytes lost through sweating during exercise.

Energy drinks: also contain substances that act as nonnutritive stimulants, such as caffeine, guarana, taurine, ginseng, l-carnitine, creatine, and/or glucuronolactone, with purported ergogenic or performance-enhancing effects.

The operative word is “purported.”  The committee’s tough conclusion: 

The use of sports drinks in place of water on the sports field or in the school lunchroom is generally unnecessary.

Stimulant-containing energy drinks have no place in the diets of children or adolescents.

For the record, PepsiCo spent $113 million to market Gatorade in 2010 (says Advertising Age). 

The committee was concerned about the effects of high-dose caffeine on kids.  Although its report did not distinguish energy drinks from energy shots, its conclusion undoubtedly applies to those too.  Energy shots are more concentrated versions of energy drinks.

This is a big issue because pediatricians are concerned about the marketing of all of these caffeine-laden drinks to kids.   Marketers, the Nutrition Committee says, are pushing energy drinks to kids as low-calorie “healthier” alternatives.

BeverageDaily.com asked Red Bull, the leading energy shot seller, about its marketing practices.  The company denies marketing its shots to kids.

We do not market our product to children and other caffeine sensitive people…The authors of this report seem to be unaware that the American Beverage Association (ABA) and also the European Beverage Association (UNESDA) have already agreed codes of practice for the marketing and labelling of energy drinks.

Maybe, but energy shots are the new hot product, so hot that FoodNavigator-USA.com has just devoted a special report to them.  Sales are booming.  The only concern?  Can they continue?  Or, will they be replaced by the even hotter new thing: energy strips?

 Energy shots special edition: Flash in the pan or the runaway success story of the decade?  Cynics said they would never catch on. Who would cough up $2.99 for a mouthful of caffeine, taurine and vitamins when you can enjoy a coffee and a snack – or a whole can of your favourite energy drink – for the same price?.. Read 

Energy shot market still has significant growth potential, say researchers: While it might not be able to sustain its early “meteoric” growth rates, the energy shots market still has significant growth potential and can potentially target a far wider audience than energy drinks, market researchers have predicted… Read 

5-hour Energy increases grip on energy shots market: 5-hour Energy’s grip on the US energy shot market has tightened further in the past year, with the brand now accounting for nine out of every $10 spent in the burgeoning category… Read

 Hain Celestial scores industry first with refrigerated energy shot: Hain Celestial will break new ground in the burgeoning shots market this fall with the launch of the first refrigerated energy shot… Read 

Does the energy shot market have room for a new player?  A David vs Goliath battle is set to be waged in the US energy shots sector as two ex-Marines seek to carve out a niche in a market so competitive that even Red Bull has thrown in the towel and made a sharp exit… Read 

5-Hour Energy ramps up from seven to nine million bottles a week: 5-Hour Energy is now selling nine million bottles of its energy shots a week compared with seven million last year, a 28% rise in volume, the firm has revealed… Read 

Monster Energy maker: Continued growth of energy drinks ‘remarkable’: The US energy drinks sector is continuing to generate “quite remarkable” growth despite the depressing economic climate and high gas prices, according to the owner of Monster Energy drinks and Worx Energy shots… Read 

Red Bull cans energy shots and Cola in US (but not Europe): Global energy drink leader Red Bull has taken a rare step back by withdrawing Red Bull Cola and Red Bull Energy Shots from the US market – but says it has no plans to withdraw the products from the other 20 markets where they are sold… Read 

Entrepreneur: Energy strips could be worth $1bn in 3-5 years: The entrepreneur behind Sheets Energy Strips – novel dissolvable strips delivering an instant hit of caffeine and B vitamins – says the category could be worth $1bn in the next three-to-five years… Read

These products are about making a fortune selling potentially harmful beverages under the guide of “healthy” to anyone wanting a quick caffeine fix.

They are about marketing, not health.

Water anyone?

Thanks to Ellen Fried for sending the latest info on energy drinks. I will never cease to be amazed by the money and effort that goes into designing “energy drinks,” in quotes because energy comes from calories and that usually means sugars of one kind or another accompanied by lots of caffeine.

So here’s Amp, in line to become PepsiCo’s “energy drink of the masses” or at least  “goal-oriented males 18-34.” Would you like to see what $10 million in advertising buys? Take a look. One of the draws will be a line extension of the drink that contains L-theanine. This compound, new to me, is an amino acid of some kind, but one that has nothing to do with body proteins.  It is something found in tea leaves. Will it give those guys energy? Only if they think so.

Ellen also points out that kids with $199 can buy Mountain Dew and Amp jackets. Cool.

In 2014, the soda industry (American Beverage Industry, Coke, Pepsi, and Dr. Pepper) and the Alliance for a Healthier Generation (founded by the American Heart Association and the Clinton Foundation) pledged to reduce calories in its beverages as a means to help with weight control.  The pledge was to reduce calories in sugary drinks by 20% by 2025.

At the moment, achievement of this goal seems unlikely according to a report by the American Beverage Association and the Alliance. 

The overall summary: a 3 (!) calorie per person per day reduction since 2014.

Plotting the data this way makes the change seem significant, but this industry has a long way to go.

Why isn’t it doing better?  The simple answer: sugary drinks sell and are highly profitable.

The report explains the trends:

• A decline in consumption of carbonated soft drinks, but an increase in consumption of sugary sports drinks, energy drinks, and ready-to-drink teas and coffees.
• A decline in retail sales of carbonated soft drinks, but an increase in calories from fountain drinks and food service.
• An increase in sales of smaller-size containers, but also an increase in sales of larger containers.

The report does not give advertising figures.

I’d like to know which products are getting the most marketing dollars.   Want to take a guess?

It’s been a tough month for the soda industry.

• Yesterday, members of Mexico’s Nutritional Health Alliance held a press conference to complain that a Coca-Cola Christmas television ad violated the human rights of the indigenous people of the Mixe community of Totontepec.
  

  The ad, released by Coca-Cola in late November on social media as part of its “OpenYourHeart” Christmas advertising campaign shows young people who are outsiders to the Mixe indigenous community arriving to build a Christmas tree of wood and Coca-Cola bottle caps, distributing Coca-Cola to young people from the community and transmitting the message “Stay United” in the Mixe language.

  Coca-Cola removed the ad from its social media channels, but you can watch a version produced by the Alliance in which Mixe youth comment on the ad. The Alliance also has produced a translation.

Al Jazeera produced a video analysis.

• On November 6, the New York Times reported that the University of Colorado was returning a million dollar grant that had paid for the Global Energy Balance Network (GEBN), the group funded by Coca-Cola that said you didn’t need to worry about what you ate as long as you were active.
• On November 24, AP reporter Candice Choi published e-mails between the U. Colorado scientist behind the GEBN.  These revealed that “Coke helped pick the group’s leaders, edited its mission statement and suggested articles and videos for its website.”
• Coca-Cola’s chief scientist, Rhona Applebaum, immediately resigned.
• On November 29, Helena Bottemiller Evich wrote in Politico how health advocates are running endless campaigns for so taxes, and that these will soon be coming to a polling place near you.
• On November 30, the UK’s Commons Health Committee called for a 20% tax on sugar-sweetened beverages.
• On December 1, the GEBN closed shop as a result of loss of funding.
• This week’s issue of The Lancet Diabetes and Endocrinology contains an opinion piece by U North Carolina professor Barry Popkin and Corinna Hawkes of City University London arguing that the world is eating too much sugar and that changes in policy are needed to encourage reduced consumption of sugary drinks.  According to Politico Morning Agriculture, the American Beverage Association (ABA) is most unhappy about the piece.  It claims that the prevalence of obesity and diabetes are rising but soft drink sales are falling in the U.S., saying “This proves that beverages are not driving these epidemics.”  [Comment: as I discuss in Soda Politics, only half the population drinks sugary beverages meaning that those who do drink them drink a lot.  Also, diabetes rates are falling in the U.S.]
• The ABA won a battle in San Francisco, but is surely losing the public relations war.  It sued the city over a Board of Supervisors ban on ads for sugary drinks on city property and requiring warning labels on all billboards and other surfaces within the city.  The ABA argued that both laws violate the First Amendment.  You might think this argument would get thrown out of court immediately, but you would be wrong, as the Supreme Court is becoming more hostile to such laws.  If you want to hear how the Board of Supervisors reacted to this, click here for the meeting transcript. (thanks to Politico Morning Agriculture for this item too and to Michele Simon for clarifying the legal issues).

I keep getting asked “why pick on sodas?”  The answer: they are an easy target, low-hanging fruit in public health terms.  They contain sugars but nothing else of redeeming nutritional value, are strongly associated with diets that raise the risk of obesity and its consequences, and are heavily marketed as what you need to be happy.  The industry is fighting hard and on many fronts to maintain sales.  Advocates are keeping its lawyers and lobbyists busy.

All this was just in the last month.  Expect more to come.

Some of the reaction to yesterday’s post commenting on guidelines for voluntary restrictions on marketing to kids focused on political realities.  Given that our current Congress is highly unlikely to enact mandatory guidelines, improving voluntary guidelines is the best we can do.

Maybe, but some members of Congress are willing to take action.

Take a look at Buzz Kill, a report on the marketing of highly caffeinated energy drinks by the staff of Senators Edward J. Markey (D-Mass.) in coordination with the staff of Senators Richard J. Durbin (D-Ill.), and Richard Blumenthal (D-Conn.)

Concerned about the effects of these drinks on the health of America’s youth, the Senators held hearings and sent a questionnaire to the 16 major companies that make these drinks “to assess the extent to which the energy drink industry as a whole will commit to voluntary measures that will better protect young consumers and prevent misuse.”

Buzz Kill summarizes what they learned from the 12 companies that responded.

• Only 4 of the 12 companies said they would not market to youth under age 18 (these companies constitute 90% of the market).
• Only one company committed to all specific measures: labeling products as not intended for youth under age 18, restricting advertising buys to media where no more than 35 percent of the audience is under age 18, restricting social media access for youth under age 18, and avoiding featuring youth under age 18 in energy drink marketing campaigns.
• All but one of the responding companies said they would not market, sample, or sell their products in K-12 school settings, but 2 companies used equivocal language.
• 6 of 10 companies said they were willing to report adverse advents; 3 of 10 said they would do so under specified conditions, and 1 refused to report.
• 3 companies that belong to the American Beverage Association, which says its members are committed not to market caffeinated energy drinks as sports drinks, do so.
• Most of the 12 companies label caffeine content on their products, and say they will not promote rapid or excessive consumption or the mixing of energy drinks with drugs or alcohol.
• 4 of the 12 companies (representing 90% of the market) refuse to commit to protecting adolescents from targeted marketing campaigns.

Summary: the companies that own 90% of the energy drink market are largely unwilling to do much to stop marketing their products to kids under age 18.

Buzz Kill comes with recommendations.  Here’s the first:

To protect youth, all energy drink manufacturers should cease marketing of energy drink products to children and teens under the age of 18 and sales of these products in K-12 school settings. Companies should engage with distributers and other third-party entities to ensure all contractual partners are bound by this commitment. Additionally, companies should put in place social media and online restrictions, and cease online appeals and marketing to children and teens.

It also comes with an ask: write a letter to the companies asking for stronger voluntary commitments.

It says nothing about regulation.  But Buzz Kill provides plenty of evidence that nothing short of regulation will get these companies to stop such practices.

The Europeans are regulating energy drinks.  We can too.