NEW YORK (AP) — Shares of Monster Beverage Corp. slide again Friday after the country's biggest energy drink maker disclosed that it was being investigated for its advertising practices.
The Corona, Calif.-based company said in a filing with the U.S. Securities and Exchange Commission Thursday that it received a subpoena last month from an unidentified state attorney general's office concerning the advertising and ingredients of its energy drinks, which have skyrocketed in popularity in recent years.
The disclosure comes at a time when scrutiny of the industry is intensifying.
Energy drinks remain a tiny part of the carbonated soft drinks market, representing just 3.3 percent of sales volume, according to the industry tracker Beverage Digest. But while soda consumption has flagged in recent years, energy drinks have grown by leaps and bounds.