Annual sale of christmas [inaudible] this house will always grow and should. It just seemed to me such a shame when we came here to find nothing of the past in the house, hardly anything before 1902. And when we went to colombia, the president ial palace there had all the history of that country in it. Every piece of furniture in it has some link with the past. I thought the white house should be like that. Our message was this as mothers were concerned, as first ladies were committed, and as citizens of the world, we pledge to do all thats possible to stop this scourge. Season two of our original series first ladies influence and image, looking at the public and private lives of the women who have served as first lady in their own words live monday nights including your call, Facebook Comments and tweets starting next monday with first lady can Edith Roosevelt at 9 eastern on cspan and cspan3. A Senate CommerceCommittee Hearing on the marketing and health risks of Energy Drinks to children. Testifying before the committee are executives from red bull, monster and rockstar drink companies as well as medical experts. From capitol hill, this is about two and a half hours. The senate [inaudible] the person at the witness table knows that better than anybody. Are you going to do anything with those things . Is that an exhibition, or are you going to show us your you are . Okay. Let me just explain to the witnesses and to the faithful audience, its hard to get people confirmed around here, and so it always comes down to, often comes down to when a Single Member is missing or not findable that everything stops, and the whole world tries to get that person, find that person. And so thats the situation were in now. If she is found and does vote, which i dont think will be probable, then well ill have to go back and do another vote and make your life even worse. However, senator durbin is here, and senator blumenthal is here and senator markeys going to be here, and im going to what i want to do because those three have been so incredible on in this whole subject, theyve put out, theyve put out a report, the three of them, which is whats called whats all the buzz about. And you understand what i mean by buzz. This is a different kind of buzz. And they did this some months ago. Its a fabulous report. And its all about targeting marketing to adolescents of things which should not be targeted or marketed to them. So what im going to do is make my statement and then listen to my, my leader, richard durbin, who has been working very, very strongly, as i indicated, on this. And then im going to turn the gavel over to senator blumenthal not because i want to, but because the thought of him having the gavel, presiding over something in which he and senator markey have been so committed and so dedicated for so long is the only proper thing to do. So i will fade into the distance, and you will forget that you ever heard me or saw me. [laughter] so my statement. Todays hearing is going to look at a product that has been growing very rapidly in popularity in the last few years. Its not the congress, actually, im talking about, its Energy Drinks. Energy drinks. While Energy Drink Companies have aggressively marketed their products on television, social media and event sponsorship, Public Health experts have been raising some serious, disturbing questions about these drinks. Theyre asking whether we should be letting our children drink Energy Drinks and whether Energy Drink Companies should be able to market their products to children and to teenagers, two fairly basic questions. In the meantime, if you watch tv, every other tv ad is either about a car which is fine or about one of these drinks which is less fine. I think these are important questions, and im going to be listening to those or asking some of them. So here are just two facts about Energy Drinks. As Energy Drink Marketing and sales to children has increased, there has been a surge in emergency room visits associated with Energy Drinks. And in the First Six Months of this year, Poison Control Centers received 1,500 reports involving Energy Drinks, more than half of which involved children under the age of 18. So these are two frightening statistics. Pediatricians and other medical experts have been saying that high levels of caffeine found in of these drinks, many pose health risks to young people such as heart arrhythmias, increased Blood Pressure and dehydration. And, again, thats scary stuff. In fact, a recent clinical report published by the American Academy of pediatrics states, quote rigorous review and analysis of the literature reveal that caffeine and other stimulant substances contained in Energy Drinks have no place in the diet of children and adolescents, closed quote. So thats what were hearing from pediatricians. And just last month the American Medical Association approved a resolution endorsing a ban on marketing Energy Drinks to children and teens. They dont do that often. They did that on this. That brings us to the question before us, how are Companies MarketingEnergy Drinks to younger people, what are their techniques . And are Energy Drink Companies listening to the medical experts who are increasingly worried about what these drinks may be doing to our kids . Is there any talk back and forth . Two members of this committee, senators blumenthal and markey along with senator durbin, have been leading the way in examining the marketing practices of major Energy Drink Companies for a long time. And i honor them for their work. Their investigation found that while Energy Drink Companies say they do not market to children, adolescent Consumer Products are frequent targets for Energy Drink Marketing practices. We know that. Similarly, Marketing Experts at the rudd center on food policy and obesity at Yale University have raised concerns about Energy Drink Marketing practices that are reaching teens in high percentages relative to adults. For example, disturbingly, many Energy Drinks are now sold in large, nonreseal bl Containers Holding two to three servers that encourage high volume consumption in one sitting. Clever, isnt it . Helpful, it is not. To explore the nature and extent of energy drink Marketing Experts reaching children and teens, the committee recently requested information from leading Energy Drink Companies about marketing practices that reach young audiences. The information we received from these companies along with publiclyavailable information supports the findings of senators blumenthal, markey and durbin as well as oh marketing other Marketing Experts that a number of companies are using marketing techniques highly appealing to teens, deliberately appealing to teens. We know that some Companies Foster athletes as young as 13 or 14 years and make them a public face for the company. These Young Athletes are featured wearing the logos of company in photos and videos on the companys web site and i through social media channels. The question i want us to get at in in this hearing is whether this is responsible corporate behavior. Today we will learn more about these issues from Public Health and Marketing Experts as well as several leading Energy Drink Companies. In the next few weeks, i understand that the institute of medicine, the department of health and Human Services and other leading Health Agencies are convening public panels to review the Health Effects of these drinks. In my judgment, this problem is crying out for that kind of credible scientific review, and im glad its happening in the immediate aftermath of this hearing. Without further pause and with the permission of senator blumenthal, i would like to call on senator richard during by. Durbin. From illinois. Thank you very much, mr. Chairman. I want to commend you, chairman rockefeller and senator blumenthal, for your leadership this convening this hearing on this important issue. And i want to thank you for allowing me to make a statement. Ten years ago most of the people in this room would have never heard of an energy drink. Well, times have changed by some estimates, the sale of Energy Drinks has risen by 60 over the past five years. Energy drinks are now a common fixture in grocery store, vending machines and Convenience Stores. I would really challenge anybody in this room to go to their favorite gas station and stand at the cash register, and if you cannot reach an energy drink as you stand there, ill be spock shocked. Ill be shocked. Throughout illinois they are as close to the register, as close to the consumer as possible. And as a sale of Energy Drinks has grown, so has the alarming evidence that they pose potential health risks, and the Energy Drink Market has grown to its current size because it is marketing to children and adolescents. Scientific studies have concluded that consuming large amounts of caffeine can have of Serious Health risks such aziz yours, heart arrhythmias and death. In our audience today is wen key crossland, she is the mother of a 14yearold who died in maryland after consuming two 24ounce cans of Monster Energy drink. I met with mrs. Crossland. Its a heartbreaking story. Scientific studies have concluded that consuming these drinks are dangerous. Organizations committed to the well being of children and adolescents such as the American Academy of pediatrics, the American Medical Association, the National Federation of State High School associations and the ncaa discourage kids from drinking Energy Drinks. In fact, the American Academy of pediatrics stated that Energy Drinks have no place in the diet of children and adolescents. A recent article in an official aap journal said, quote given the unknown levels of caffeine and other poorlystudied additives in Energy Drinks, there is significant risk associated with Energy Drink Consumption and may outweigh the benefits in the adolescent consumer. Warnings from aap are echoed by a recent study which found that between 2007 and 2011 emergency room visits related to the consumption of Energy Drinks doubled from 10,000 to 20,000. In the First Six Months of this year, the American Association of Poison Control Centers, in the First Six Months, have already received 1,575 reports related to Energy Drinks, 988 of those reports, over half, involved children under the age of 18. Many of the Health Concerns about Energy Drinks are due to their high levels of caffeine and ingredients that act as stimulants. The fda currently limits the level of caffeine in a soda to no more than 71 milligrams of caffeine in a 12 ounce can. Compare that to 240 milligrams of caffeine in a 24 ounce can of Monster Energy. But as we all know, most Energy Drinks are not sold in 12 ounce cans, theyre sold in 16, 24, even 32ounce containers. These are two, monster and rock item star. 24ounce cans. Just one of these cans contains 240 milligrams of caffeine. These cans are sold in Convenience Stores right next to the gatorade and soft drinks, but just one of these cans contains the same amount of caffeine as almost seven cans of soda which we have displayed here on the table. They each contain 35 milligrams apiece. Theyre restricted and regulated in terms of what they can contain. But this one can contains more and is for sale right next to them. Keep if mind that some adolescents consume more than one energy drink in a 24hour period and each of these drinks contain not only caffeine, but additives and stimulants such as gin seven. I was reading the ingredients on this monster label. It contains both of the things i just noted. Although many of these ingredients have been used for years, Energy Drinks combine them in new ways and in higher doses. On top of that, Energy Drink Companies urge people to, quote, chug down, throw it back, pound it down when it comes to their products and to consume them before, during or after physical activity to enhance performance. As a result, younger and younger people in america are exposed to higher and higher levels of stimulants in a short window of time and in new ways compared to how people have traditionally consumed caffeinated hot drinks or beverages. Now lets get to the issue of marketing. Across the board, makers of Energy Drinks say consistently that they do not market their products to children, senator. But then you hear about the samples of Energy Drinks being distributed where teens hang out; sporting events, concerts, local parks, even s. A. T. Prep courses. You can go to their web sites and see that energy drink makers sponsor athletes as young as 10 years of age. You cant see this cover from where youre sitting, but this is a publication up here called red bulletin put out by red bull that makes some of these Energy Drinks. Theyre insisting to us they dont market to children. Take a look at that cover. Thats a 12yearold boy on that cover. Enzo lopez is a motocross athlete. Hes been signed by red bull to promote their product. Do you think that he appeals to older people . He appeals to kids his own age. Thats what its all about. Some of us, senator blumenthal, now senator markey, even senator rockefeller, we were all veterans of the tobacco wars fought in different theaters, but we were fighting in that same war. Remember when the Tobacco Companies used to tell us, oh, were not interested in kids. We knew better. We knew if they could get em hooked early on, it would become an addiction and one hard to break. Were getting the same run around from these energy be drink companies. They are openly, openly advertising to kids and denying it. Companies use highly effective tools to reach kids; video games on their web sites, social media, flashy ads and claims to increase attention, stamina and health. Contrary to industry claims that they dont market to children, we can see they do, and sadly, sadly, its working. According to a 2011 study, 35 one out of three eighth graders recently consumed Energy Drinks, and 18 drank more than one a day. Heres a photo from an event sponsored by Monster Energy as part of the monster army recontour, i think you can see that, which moves across the country to identify talented athletes including children under the age of 12k. This photo features kids as young as 7 years of age who won the local competition that was sponsored by this company, this monster beverage company. Its hard to believe the claims of monster, red bull and rockstar, that they dont market to children and look at the obvious marketing thats going on right now. When energy drink makers say they dont market to children, maybe they mean they dont market to kids under 12. This image clearly suggests marketing to children, but i want to make a separate point. Im also deeply concerned about marketing to adolescents between the ages of 12 and 18. Ive been through this battle before. We talked about tobacco. Ive been through in this battle with ephedra when a 16yearold kid in lincoln, illinois, wanted to get fired up for a High School Football game, went to his local gas stationing and bought some of these stimulant pill, energy pills. Poor kid died from just taking pills that you could buy other the counter at a gas station that contained that chemical. These Companies Know what theyre doing. Theyve got kids with disposable income who are swayed by advertising and can get hooked on their product. Public Health Experts across the country have stated concerns about the beverages for adolescents. Last month, the ama supported a ban on the marketing of Energy Drinks to adolescents under the age of 18. Identify joined with senators blumenthal and markey to urge energy drink make errs to adopt policies prohibiting marketing to adolescents up to the age of 18. This hearing provides an 30r79 opportunity to discuss health and marketing when it comes to these Energy Drinks and kids. I look toward to working with you and the Public Health community and even the industry. The responsible elements in this industry, to take the necessary steps to protect our children and adolescents. Thank you, mr. Chairman. Thank you, senator durbin, for a totally focused and intense presentation. You at your best. Thanks. Now i want to call on senator thune, and then we will proceed as i indicated before. Thank you, mr. Chairman. I want to thank you for holding this hearing and want to extend a thank you to all the witnesses. I understand were going to have seven on the panel today. Im not sure i remember a time we have had seven witnesses on one panel, so im sure itll be informative and lively and with all the cans there on the table, energetic, i would say too. And let me just say that insuring the health of our children is a priority for all of us, and so we all take that responsibility very seriously. The Energy Drink Industrys remarkably fast growing with american sales reaching 8. 6 billion in 2012 which is about 12 times their level a decade ago according to a recent article in the economist. This rapid growth, however, has contributed to closer scrutiny of the industry and its products. Concerns about the possible effects on children and adolescents who consume these products have prompted several studies and investigations. While it is entirely appropriate to examine these issues, we should also consider the broader context regarding caffeinated products. Caffeines been consumed for thousands of years, im sure most of us take advantage of it once in a while to get through our days. Its found in beverages such as coffee, tea, soft drinks and in products contained coke or chocolate. But when i hear that caffeine may now be added to products such as potato chips and marsh malleys, i have to wonder if its gone too far. Some of our witnesses will note certain Energy Drinks may contain other stimulants and that the combination raises additional concerns, and so i look forward to the witnesses discussion on this point as well. The industry has share with the the chief that most commonlysold Energy Drinks contain about half the caffeine of a similarlysized cup of coffeehouse coffee. For example, were told that a typical 16ounce can contains about 180 milligrams of caffeine by comparison. My understanding that a typical 16 ounce cup of coffee contains about 330 milligrams of caffeine. According to the fda, most healthy adults can consume up to 400 milligrams of caffeine a day, but children only 4585 depending on their weight. Few would challenge the statement that children should not be consuming highly caffeinated Energy Drinks, so i look forward to hearing the step that is the Companies Represented here today are taking to insure their products are safe as well as the efforts theyre undertaking to make sure their products are marketed appropriately. Protecting the health of our children is very important, i believe its also important to rely on good science and accurate evaluations when assessing the possible health risks of Energy Drinks and other products. Given the broader context regarding the safety the of caffeine and its sometimes significant use in nonenergy drink beverages, any discussion of the scientific discussions should examine the consumption of caffeine from a variety of products, not just Energy Drinks. I hope that the testimony and evidence put forward today is examined thoughtfully and within that larger context. Mr. Chairman, thank you again for holding this hearing, and i look forward to hearing from our witnesses. And thank the senator from illinois for being here. Thank you. Thank you very much, senator thune. I ask unanimous consent to place this in the hearing record, and i dont hear any objections. Nor would i have heard, were there to have been any. [laughter] senator blumenthal, would you come forward, please, and share the list of witnesses you have . And im have very proud of the work youve dope. Mr. Chairman, thank you very much for allowing me to testify. Mr. Thank you, senator turbine. Durbin. [background sounds] id like the witnesses to come forward if you would, please. Dr. Marcy beth schneider, dr. Schneider is a pediatrician whos here on behalf of the American Academy of pediatrics. Dr. Jennifer harris, dr. Harris is from Yale Universitys rudd center on food policy and obesity. Dr. William r. Spencer, dr. Spencer is a legislator from Suffolk County, new york, and he is originally from welsh, virginia. Mr. Rodney saks, mr. Saks is the chairman and chief executive officer of monster beverage corporation. Ms. Amy e. Taylor, Vice President and general manager of red bull north america. Ms. Janet wiener, ms. Wiener is chief Financial Officer and chief Operations Officer for rockstar incorporated, and dr. James r. Coughlin, dr. Coughlin is the president of coughlin and associates, consultants in food, nutritional chemical toxicology and safety. We welcome you. We are very, very grateful to you each for being here today. This hearing is another step in the efforts that senator durbin, now senator markey and i have led to call attention to the Health Risks Associated with Energy Drinks. I began my own involvement with Energy Drinks that combined alcohol with their product when i was attorney general, led a group of my colleagues to successfully urge the fda to ban alcoholic Energy Drinks for the obvious reasons that they resulted, essentially, in energized drunks. The effort to call attention to the potential health risks involves the marketing practices, youve heard them describes here. I will have questions about them. And, careerly, we are clearly, we are concerned, and i know the panel will address, each of the witnesses will address these issues not only the health risks that result from huge amounts of caffeine in these drinks that endanger particularly young people with problems ranging from cardiac arrest to liver and kidney damage and result in the doubling of emergency room visits that are related to Energy Drinks, but also to marketing and promotion practices that involve, as youve heard, the use of adolescent athletes and sometimes children in promotions and pitches as well as web sites and social media, making use of children, making use of video games and other activities designed to appeal to children as well as buses and vans at s. A. T. Test preparation and a variety of act thetivities that seem activities that seem very problematic. And so im not going to go on at in this point with what i think the panel will be discussing, but simply to call attention to a number of the areas that we think are important and that are for this panel to assess. But i would just finish this part of my statement by saying we really do appeal to the more responsible elements in this industry, the more responsible companies to set a model and provide an example because voluntary compliance, for example, with the American Beverage Association standards and practices would be a good step, and if further action is necessary, certainly, we would consider it. I want to thank both of my colleagues, senator durbin and senator markey, for their work on this issue and most particularly now senator markey for the report, whats all the buzz about which has been entered into the record, a very important and compelling document that we worked on together. And i want to ask senator markey if he has any remarks at the opening of our hearing. Thank you, senator, very much. And thank you for your work, and i thank senator rock feller and rockefeller and senator thune for having this very important hearing here today. Over the last few years, a class of caffeinelaced beverages popular with teens and nobody collectively as Energy Drinks has taken the marketplace by storm. These products promise improved athletic performance, more energy, better hydration, increased concentration and enhanced alertness that collectively zap the nap and make consumers better at life, athletics and performance. But Energy Drinks have been linked to severe adverse Health Effects. In fact, between 2007 and 2011 the number of emergency room visits related to the consumption of Energy Drinks has doubled. This data is particularly troubling when examining the way Energy Drink Companies market these beverages, especially to teenagers. Earlier this year senator blumenthal, senator durbin and i held up a, this issue for examination, and we believe that the spotlight belongs on this issue. Senator blumenthal has referred to this report, whats all the buzz about, and this goes right to the heart of this issue, focus on teenagers, focus on younger people. Senator durbin made reference to smoking. Its right on the money. Thats exactly whats happening, and we cant kid ourselves about the direct correlation that exists between the marketing practices and the increased use by younger people of these beverages. We surveyed the practices of the makers of 14 of the most commonly sold Energy Drink Brands including the three companies here today. Our report found that while many of these products do not engage in traditional marketing through tv, print and radio, they are very active in social media and sponsorship of sporting, music and gaming events that promote grand recognition Brand Recognition in a way that clearly appeals to young people and often promotes unhell hawaii and quick consumption. These companies are adamant that their target market consists of adults, but with their heavy use of promotion through facebook, instagram, twitter and other teen favorites, they are, in fact, marketing to every single teenager in this country. Thats what this hearing is all about. Senator blumenthal and senator durbin and i are going to continue to focus on this issue because we do think that there has to be a dramatic change in the marketing practices of this industry, and i thank you, senator, for thank you, senator markey. Lets begin with you, dr. Dr. Schneider, and then well just go across the table. Good afternoon, chairman rockefeller, Ranking Member thune, senator blumenthal and members of the Senate Commerce committee. And thank you so much for inviting me to speak this afternoon. My name is dr. Marcy schneider, and im honored to provide testimony on behalf of the 60,000 members of the American Academy of pediatrics, the aap. Im a physician boarded in the specialty of pediatrics and in the subspecialty of adolescent medicine in private practice in greenwich, connecticut. I am an Incoming Executive Committee member of the the aap section of adolescent health. While serving on the committee on nutrition, i coauthored a report entitled sports drinks and Energy Drinks for children and adolescents, are they appropriate. The aap published its 2011 report to raise awareness of the dangers of Energy Drink Consumption in children and adolescents by educating pediatricians who could in turn educate parents and kids about the risks of consuming numbering drinks. Energy drinks. We also took action recognizing widespread confusion between Energy Drinks and sports drink cans. After an extensive review of the research and Scientific Data available, the conclusion within the aaps clinical report was, quote Energy Drinks have no place in the diets of children and adolescents, unquote. Another area of concern was that marketing played a significant role in the rising use and abuse of Energy Drinks. What distinguishes an energy drink is that they all contain caffeine, an addictive stimulant with many side effects. These include cardiac side effects, elevated heart rate, elevated Blood Pressure, cardiac arrhythmias, sleep disturbances, anxiety, irritability, restlessness, high speech rate motor activity, increased attentiveness, stomachs secrete more fluid, people get dehydrated, and temperatures rise. Energy drinks have been implicated in seizures. We know that stimulants restrict blood flow to the entire body including the heart, including the brain and particularly the impact of a developing neuroor logical system of a child or a teenager is of grave concern. Children and adolescents are also at risk for physical dependence and addiction and, in fact, in School Children caffeine withdrawal has been shown to be associated with decreased reaction and attention for up to a week after cessation of caffeine use. In addition to caffeine, Energy Drinks contain other stimulant substances such as the plant extract [inaudible] both of which make the caffeine more to tent. Potent. Other nonstimulant ingredients in Energy Drinks also have been noted to have negative side effects, nausea, vomiting, abdominal pain and diarrhea, gin sevens been associated with vaginal bleeding and with rapid heartbeat. The adverse Health Effects of Energy Drinks are increasingly bringing consumers to the emergency room. From 2007 to 2011, samsa reported these energy room visits increasing that involved Energy Drinks. Theyve doubled from 10,000, over 10,000 in 2007 to over 20,000 in 2011. And almost half of those were among patients from 1225. In addition, the poison control exposure report skyrocketed from 672 in 2010 to over 3,000 in 2011 and 2012. Energy drinks are reportedly consumed by 3050 of young adults, and youve also heard this afternoon that 18 of eighth graders are using these, more than one energy drink a day. The public needs to fully understand the potential for addiction, overconsumption, intoxication and death. The marketing and labeling of Energy Drink Products also plays a significant role in increasing health risks for young people. First, the marketing of these products aims to entice young people through social media and entertainment without appropriate information about the products risks. Second, labeling is very confusing. Some energy drink labels delineate the amount of caffeine, taurine, others simply lump the stimulants under an umbrella of an energy blend. Third, it results in confusion and poses great safety risks. Sports drinks provide energy through carbohydrates, through electrolytes and are used to replace the fuel lost during physical exertion. Stimulant substances have no knew trittive value and put athletes at risk of overheating, dehydrating and having caffeine toxicity. As an adolescent medicine specialist, i have encountered numerous participants who inadvertently pushed their children to consume these drinks and were shocked at the risks. I would like to submit the following five recommendations. First, caffeine and Energy Drinks should be actively and strongly discouraged for young people. Children and adolescents are not little adults. Their bodies are growing, their bodies are developing, their minds are growing and developing. Sleep and a wellbalanced diet are really all that young bodies need to perform their daily tasks. This message really needs to be reinforced and especially at physician visits. Second, given the health risks, Public Education is necessary. Caffeine in combination with other stimulant ingredients is what makes these Energy Drinks a grave concern. Third, Energy Drinks ingredients should be clearly labeled and should provide information on the cumulative total of all caffeine and other stimulants. Fourth, switch the rise in an given the rise in adverse Health Effects associated with Energy Drinks that include high doses of caffeine often in combination with other stimulants with unknown safety profiles, research is urgently needed. And last, stronger federal guidance is necessary. The aap is very pleased that the fda took action in response to the Health Concerns associated with other caffeinated products. Ultimately, policymakers in the federal government should Work Together to advance, to advance and address the Rising Health and Safety Incidents associated with Energy Drinks. Again, it is an honor to provide testimony today on behalf of the aap. I would be happy to answer any questions that you might have. Thank you. Thank you, dr. Schneider. Dr. Harris. Thank you, senator blumenthal, chairman rockefeller and members of the committee, for inviting me to participate in this important hearing on Energy Drinks and use. My name is dr. Jennifer harris, and i am Senior Research scientist and director of marketing initiatives at the rudd center for food policy and obesity at Yale University. I have been studying Food Marketing to children and teens for the past ten years, and i also have an mba and 20 years of experience as a Marketing Executive and consultant. Today i will describe how Energy Drink Companies reach and target teens, why Beverage Industry marketing guidelines do not address Public Health concerns and how companies could protect minors from the harm caused by their products. I would also like to refer you to my extensive written testimony. In 2010 we began to study youthtargeted marketing of soda, fruit drinks and other sugary drinks. But what we learned about Energy Drink Cans stunned us. Energy drink brands such as 5hour energy shots and red bull spend more on advertising than any other category of sugary drinks except soda, and their tv ads often appear on teentargeted Networks Like mtv and adult swim. In fact, teens see more energy try ads than adults do on tv. All brands are active in social media that teens share virally with their friends including facebook, twitter and youtube. Red bull and Monster Energy are the number five and the number twelve most popular brands on facebook. Energy drink brands often promote teen athletes be and musicians and sponsor local events where they provide free samples including to minors. And most Energy Drinks are sold in Convenience Stores where special displays encourage impulse purchases, and minors can easily buy them without parents consent. We recently updated our marketing analysis and found that these practices continue unabated and have become worse. New products are being advertised. Several brands doubled their advertising spending in two years, and social media fans increased by two to ten times. And this marketing is very effective. While sales of most other beverage categories have designed, Energy Drink Sales increased by 19 in 2012 reaching 8 billion. Youve heard that pediatricians are concerned and so are parents. Threequarters of parents agree that Energy Drinks should not be marketed or sold to teens under 18. The American Beverage Association and energy drink manufacturers have responded to these concerns. Today youll probably hear from members of the panel that caffeine be is safe for all caffeine is safe for all ages and that manufacturers comply with aba guidelines for responsible labeling and marketing of Energy Drinks. But many energy drink manufacturers do not belong to the aba, and not all members comply with these guidelines. Further, the fda has not determined that the concentration of caffeine and the other stimulants in most Energy Drinks and shots are safe for the food supply. Youll probably also hear that these companies do not market their products to children. But the only marketing that aba guidelines specifically prohibit is advertising on Childrens Television programs like nickelodeon and marketing in elementary schools. The policy does not address advertising to children 12 years and older or most common types of Energy Drink Marketing including social media and sponsorships. The aba also suggests that Energy Drinks not be marketed as sports drinks, but Companies Continue to sponsor sporting events and high school athletics, hire athletes as ambassadors and exprison sitly encourage explicitly encourage use during physical activity. Clearly, more needs to be done to protect teens. At a minimum, energy drink manufacturers should not advertise in media that are more likely to be seen by teens than adults, and they should establish age requirements to access Digital Content whenever possible. They should not engage in marketing including youtube videos and smartphone apps which just proportion that itly appeal to teens. They should not distribute free samples to minors, and they should comply with their own guidelines to not market Energy Drinks as sports drinks. But teens represent a Significant Growth opportunity for Energy Drink Companies. Teens are highly vulnerable to marketing influence, especially when it exploits their peer relationships and their desire to appear cool, daring and grown, making them an easy target. If energy drink manufacturers comet to evade thish continue to evade the issue of marketing to teens, the fda, the ftc, policymakers and attorneys general have the authority to establish and enforce restrictions on energy drink ingredient, labeling, retail placement and sales to minors. Such regulations would be widely supported by parents, the medical community and others who advocate for childrens health. Thank you, and i look forward to answering your questions. Thank you. Dr. Spencer. Thank you. Good afternoon, honorable senators, members of the committee, ladies and gentlemen. Thank you for allowing me this opportunity to testify on the marketing and sale of Energy Drinks. I am Suffolk County legislator dr. William spencer, pediatrician from huntington, new york. I was elected to the legislature in 2011, and im part of a legislative body that represents 1. 5 million people. I currently serve as chair of the Legislatures Health committee and a member of the Suffolk County board of health. The powerful Energy Drink Industry generates over 7 billion of revenue a year and spends over 100 billion per year in advertising here in the United States. Due to the growing reports of adverse effects that our county related to Energy Drinks, the board requested that i look for potential avenues of legislative action. A poor Public Health message has become pervasive. Recent ads that you mentioned earlier includes the catch phrase zap the nap. The message to children who are frequently overscheduled and under constant pressure to succeed is to ignore the bodys natural signals of fatigue and hunger and use a stimulant instead. Their illusion of energy is caffeine acting as a stimulant to the nervous system. These messages are embedded throughout our childrens lives even in the early sunday morning cartoons. Over the years weve seen that marketing has doubled recently as indicated by the yale rudd report. In our 24 7 social media world, commercials, sampling directed at children have taken the power of control away from parents ask made our children and made our children vulnerable to an industry with a cool, seductive message. I discovered that an unlevel Playing Field existed, and most parents did not know about the dangers associated with ingesting Energy Drinks. In fact, many parents think Energy Drinks are akin to sports drinks. I have personally witnessed a parent dispensing an energy drink to her 10yearold child at a swim meet, and she had assumed incorrectly that she was helping her child to hydrate. There has been a lot of action around the country as you have indicated. We know in 2012 manatee county, florida, banned the sale of Energy Drinks in its schools indicating that the drinks made the children restless and unable to concentrate in class. Its also has been reported by some of the other members that theres been a dramatic increase in emergency room visits. So far what i have reported is what i have read in Suffolk County. Energy drink companies sponsor local events for children as young as 10 years old. Samples are being distributed to local theaters in my legislative district to children standing in line as young as 12. Energy drink displays are positioned next to video games in local department stores. And most recently and along memorial day after our legislation was passed, we saw Energy Drinks being distributed at a parade in sayreville, new york. Finally and probably the most egregious act was the direct mail of an energy drink with a sample packet was sent to one of my colleagues on the legislatures 16yearold child. I believe we have a responsibility to protect our vulnerable children. I believe in the importance of free commerce and the right of businesses to conduct business in an unfettered way, but they cannot be allowed to imperil the public, especially our most vulnerable, chirp. Children. After an exhaustive effort in Suffolk County, we passed the first in the nation modest regulations prohibiting the marketing and advertising of stimulant drinks to minors, prohibiting the distribution of stimulant drinks to minors in our county parks and also embarked upon an educational campaign. This, for me, is about protecting our children. Some children, as many as one in a hundred, have underlying Heart Defects that may make them susceptible to lifethreatening conditions when exposed to even a recommended sample of energy drink. There are responsible members of the industry that i have met with, but in conclusion, although they may be responsible, there are a lot of members who are not part of the American Beverage Association that may act on their own. What i am asking today is that if the products are labeled not recommended for use in children, then we should not allow them to be marketed to children. Please consider restricting the marketing to children under 18 years old and until we can find that these drinks are safe and not habit forming. Thank you for this opportunity. Continue to be overseen by our chief scientific officer at the pharmacology at a Major University who is in part of our team from the outset. Indeed, we have extensively and continually analyzed the scientific and medical literature licensing the safety of caffeine and other ingredients and our products. Since 2002, more than 9 billion cans of monster Energy Drinks have been sold and consumed worldwide, including 8 billion the United States. The safety of caffeine and other ingredients and Monster Energy drink is wellestablished by overwhelming body of generally accepted scientific literature, published by reputable third party including major governmental and other authoritative scientific and medical bodies. Mr. Chairman, the level of caffeine in monster Energy Drinks is about half the caffeine per ounce of coffeehouse brewed coffee. Monster energys 16ounce cans, which represent more than 80 of monster and you drinks sold, contain approximately 160 milligrams of caffeine from all sources per 10. Is 16 ounces medium cup of coffee from starbucks contains approximate 330 milligrams of caffeine, more than twice as much. Dunkin donuts, care abu, seattlebased, all have more caffeine per ounce than monster, as do many iced coffees and other cold coffee beverages. The presence of Energy Drinks in the u. S. Marketplace has not increased the consumption of caffeine by teenagers and young adults. Consumption from the usda show that caffeine consumption in the u. S. Has remained relatively stable over the past decades, despite the introduction of Energy Drinks. These conclusions have been confirmed by Subsequent Research including a study commissioned by the fda in 20092010 which showed that teens and young adults, ages 1420 not consume high amounts of caffeine and that their source of caffeine is mainly from coffee, soft drinks indeed. The fda study noted the prior survey that concluded that only about 0. 9 of 1421yearolds are regular energy drinkers. A Study Released this year by researchers at Penn State University further confirmed that coffee, tea and soft drinks are the most significant caffeine sources and younger age groups, not Energy Drinks. While the Company Believes that its products are safe for all consumers, the company does not market monster to children and has never done so. For monsters introduction in 2002, the company has included an advisory statement on every can that monster is not recommended for children. Monster was the first Energy Drink Company to ever include such an advisory statement in its labeling. Monster considers the primary demographic of consumers of Energy Drinks to the young adults, primarily males, and its brand initiatives and brand image art directed towards this population. 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. It has long been the companys policy not k12 schools, the company is also to refrain from any Marketing Activities for monster that target children or k12 schools. The company sponsors music artist, events, tours and shows to promote monster. The companys primary marketing involves motorsports better aligned with monsters brand image, such as nascar, supercross, motocross, motor gp, or pro truck racing, formula one and others. The primary demographics are such motorsports is adults, not children or young teenagers. For 2012, one of the companys most significant marketing commitments was to nascar which has a meeting viewership age of over 50. Other sponsorships include smaller commitments to actual sports such as athletes who compete in events like the x. Games. The average age of x. Games of yours in the early 30s. The Company Shares your commitment to protecting the health and safety of consumers, including children and teenagers. The company strives to be a responsible Corporate Citizen and we believe our marketing practices reflect a. I appreciate the opportunity to appear before you today, to discuss the safety and marketing of our products. Thank you but i look forward to any questions you may have. Thank you, mr. Sachs. Ms. Taylor. Mr. Chairman, Ranking Member thune immense of the committee come my name is amy taylor. Ive been with red bull for 14 years and responsible for red bulls Marketing Strategy and initiatives in north america for much of that time. Let me thank the committee for the chance to appear and testify today on behalf of red bull north america about our marketing policies and practices. First, let me Say Something about our company and product. Red bull create the modern Energy Drink Company in europe in 1987 and launched indias in 1997. Red bull is now sold in more than 165 countries. Health and regulatory bodies all over the world have concluded that red bull is safe to consume. It is worth noting that are 8. 4 else can of red bull contains 80 milligrams of caffeine, which despite perception commits about the same amount of comment than a cup of coffee house in homebrewed situation half of much of that of a typical coffeehouse coffee. Red bull is a small can product in the Energy Drink Category with 85 of our business comprised of the sales eight and 12ounce cans making is unique within the category. We have a long history of cooperation with legislative and regulatory bodies in order to ensure a lawful marketing and safe consumption of our product. We are pleased the fda is looking into the safety of caffeine, as did health authorities, for example, in canada, europe, australia and new zealand. We are producing in the fda process and confident it will confirm caffeine is safe for consumption, even for teens. But weve always marketed ourselves as the untold premium product in this category. Our marketing policies and practices has evolved for strategic reasons but as an example, we made the decision and 2011 to focus on marketing more narrowly as a core demographic of 1834 to leverage our strength versus competition. Our position is reflected in our can design, packaging, pricing, and core marketing messages, as well as the content, timing and placement of our advertising and communication. While the focus on adults, no company can ensure that its marketing materials will only reach a particular audience comment people of all ages and demographics may be attracted to them. Yesterday, we submit a letter to this committee which we will now respectfully ask you to include in the record. Without objection. We are publicly announcing for the first time a voluntary commitment relating to the label, labeling and marketing of our product. We make these commitments to provide more information to consumers so they can make informed choices and to further differentiate our products as the premium adult energy drink. Our commitments are as follows, red bull will continue to label its Energy Drinks as conventional food rather than dietary supplements. We will also declare the total caffeine content per cant on our product labels. We will not sell Energy Drinks with caffeine concentration in excess of 80 milligrams per 8. 4 else is or with more than 110 calories for 8. 4 else is. Red bull will not encourage or condone the excessive our Rapid Consumption of energy drink. Our marketing will not say that more caffeine or larger sizes or higher concentration of caffeine have a better or stronger effect. We will not make claim using language simply targeted to those under 18, nor will we buy advertising targeted at audiences where more than 35 are under the age of 18. We will not feature child or teen oriented characters in our advertising and promotional activities. Red bull will not market or sell its Energy Drink Products in k12 schools or other institutions responsible for this group. We will not sample in or within the meat of the synergy of such places. Red bull is also prepared to adopt two additional commitments as producers of other sugar and caffeine containing beverages are willing to do the same. We will agree not to sell containers larger than 12 ounces and will agree to report to the fda any adverse events reported to us by consumers that are alleged to be associated with the consumption of our product. We understand the childhood and teen obesity is a major Public Health challenge, and attracting more and more attention. To the extent that sugar and caffeine are viewed as contributors to this problem, we are interested in being a part of the solution which includes the entire industry. Energy drink sector is only a small part of a much larger universe of caffeine and sugar containing drinks. That must be a part of the solution. We believe that large can sizes are a primary contributed to the problem and we think this is an area where we come together with industry, can play a constructive role. And in closing, its relevant to know in every age category, including teens and children, 93 of caffeine consumption comes from sources other than Energy Drinks. Still, we are pleased to be or to participate in these discussions. Red bull is proud of its commitment that it is making today. They enable consumers to make informed choices, and they differentiate our product as a premium adult energy drink. Thank you, and i would be placed into any questions questions you may have. Thank you very much. Ms. Weiner. Good afternoon, senator blumenthal, speak you might want to turn on push the button. Thank you. Okay, good afternoon, senator blumenthal, senator markey and Ranking Member thune, and members of the committee. My name is janet wiener, im the chief Operations Officer and chief Financial Officer for rock star in, the manufacture of rockstar Energy Drink Products. Im also coowner of the company. I thank the committee for inviting rockstar speak at todays hearing and i welcome this opportunity to discuss rockstars commitment to the safety of our products and responsibility of our Brand Marketing practices. I believe rockstar represents a model onto the enterprise that has grown from an ambitious idea into an american success story. Energy drinks like ours are extremely popular, and growing product category having sold more than 34 billion units in the United States since 2000. I would like to speak about rockstars commitment to consumer safety. Rockstars commitment to consumer safety is the companys number one priority. To use and levels of caffeine within a energy drink formulations have been determined based upon the consensus of an independent highly qualified expert panel led by a doctor at the university of Kansas Medical Center to be generally recognized as safe, the acronym is grass, and fda standards. In addition to caffeine, rockstar continued of angry instead been determined to be gras, with guidance and safe for consumption. Expert panel conditioned by our company has concluded that there is no expected safety concern associate with these ingredients alone or in combination from consumption of rockstar Energy Drink Products. Ive either one and 60 milligrams, persisting ounces, or 240 milligrams per 16 ounces, depending on the proper, rockstar contains far less caffeine than a 16ounce cup of starbucks, their house blend which contains 330 milligrams according to the starbucks website. The difference in caffeine levels is important to keep in mind in so far as coffee indeed, rather than Energy Drinks are the most significant sources of caffeine for americans. Including teens and children pick the fda commissioned a report on caffeine consumption among the u. S. Population indicated that teens and young adults, age 1421 years, consume on average approximately onethird the amount of caffeine as people over 21, a level of consumption that has remained constant even as Energy Drinks gain in popularity. Further, the report found that Energy Drinks contributed on a small portion of caffeine consumed by teenagers, and that the most significant source of campaign for both children aged two13 as most teenagers 1417 was coffee, tea and softer and. Researchers at penn state and the diet Assessment Center likewise found that Energy Drinks reminded country bidders to overall caffeine intakes in all age groups. As outlined in greater detail in my prepared statement, recent analysis have called into question two of the most cited sources alleging energy to risk. For example, a july 25, 2013 report commissioned by the American Beverage Association, they noticed the Drug Abuse Warning Network referred to as the dawn report, this is an emergency room report, findings rely upon extrapolated sample data which the reported National Statistics with emergency room visits associate with Energy Drinks. Additionally, as the aba has recently noted, the authors of the letter paint an inaccurate picture of caffeine said, ignoring the vast body of robust and reliable sites and evidence that has for decades times the safety of caffeine at the levels present in Energy Drinks, including for younger consumers. The response to the aerial level have been submitted with my prepared statements to the committee. I would like to speak about boxers living and marketing practices. Rockstar takes pride that its product labeling in restaurants but and clearly defined as possible. On its product labels and rockstar has for many years and includes the following information. Ingredients in our product including caffeine, vitamins, sugars and amino acids. The amount of total caffeine per serving, as though the total caffeine from all sources per container. A consumer advisory statement that reads not recommended for children, pregnant, or nursing women or those sensitive to caffeine. An example of rockstar Energy Drinks label is attached to my prepared statement to the committee. Like other kids. Like other kids in private is, Energy Drink Products comply with fda regulations relating to consumable products and as part of its commitment to consumer safety, rockstar voluntarily submitted to provide serious adverse events to the fda reported to us by consumers that are alleged to be associate with consumption of rockstar products. Rockstar has long committed to refrain from marketing these products to children under 12, in addition to a clearly labeled consumer advisory, the Rockstar Energy drink are not recommended for children, we also do not promote our products to children by our company website, nor does rockstar currently market or sell its products in k12 schools including high school. Rockstar targets demographics and persons 1835. Rockstar engages in Marketing Activities including events and athlete sponsorship and promotion and Action Sports, and Live Music Events to target 1835 age group. In conclusion, i wish to thank the chair and the members of the committee for providing rockstar with this opportunity to discuss our commitment to product safety and responsible marketing practices another for to answering any questions you may have. Thank you, ms. Weiner. Mr. Coffman . Mr. Chairman, Ranking Member thune and members of the committee, my name is dr. James coughlin, and i want speed is your microphone on . I pressed a couple of times. Thank you. I want to thank the committee for the opportunity to provide testimony today on the safety of Energy Drinks and caffeine. I am an independent consultant and food toxicology with over 35 Years Experience in food nutritional chemical safety. I have over 30 years of experience on health and safety issues surrounding caffeine and caffeine containing products. And im currently serving as an invited planning Committee Member for the workshop on caffeine safety being convened next monday and tuesday Night Institute of medicine at the request of fda commissioner. There are three things i would like to address to you today. First, caffeine is naturally present in many plants such as coffee, tea, guarana, and it is also added to such products as soft things, Energy Drinks and medication. The common ingredient in Energy Drinks is caffeine, and the majority of mainstream Energy Drinks contain comparable amounts of caffeine as the same size cup of coffee in only about half the caffeine content compared to coffeehouse coffees. Second, Health Outcomes of caffeine have been extensively researched for decades, and the weight of the clinical and Scientific Evidence demonstrates that moderate caffeine intake is well tolerated and does not adversely affect the general Health Outcomes. In human clinical studies, caffeine has shown no adverse affects on an electrocardiogram said parameters, and no consistent evidence shows that caffeine causes or triggers cardiac arrhythmias, even in consumers who have preexisting arrhythmias. However, caffeine does produce a very small elevation in systolic Blood Pressure, which last only a few hours, but this effect is limited to those people who do not regularly consume caffeine. Was important to understand here is that this affects on Blood Pressure is minimal or nonexistent after repeated caffeine ingestion. And many longterm studies of caffeine consumption from various products, including coffee which is the largest source of caffeine have shown that there is no increased risk for hypertension, arrhythmias, heart attacks, cardiovascular disease or even all cause mortality as has been shown in a series of recent studies. The primary source of caffeine in the u. S. , consumers of all ages are coffee, tea and soft drinks, not energy drink. And despite the internet of Energy Drinks into the marketplace, the mean caffeine intake of the Adult Population over the age of 22, with past estimates about 300 milligrams per day. This was determined in that study you heard others talk about, the study that was published in 2010. This study sponsored by fda also showed that teenagers and young adults age 1421 years of age have an average daily consumption of only about 100 milligrams of caffeine which is approximately onethird the amount of caffeine intake compared to adults. In that study. And again, this caffeine intake is primarily from coffee tea and soft drink, not from energy dreams. In april of this year at the american society, researchers presented a Dietary Intake survey which investigated caffeine Consumption Patterns in the u. S. Population, collected during 2010 and 2011 among over 37,000 consumers of caffeinated beverages. Results showed that mean daily intake of caffeine from all beverages was about 165 milligrams for all age groups. Combined. Caffeine intake was highest in 5064yearolds come at a level was about 225 milligrams per day, and intakes were lowest in consumers less than six years of age at about 36 milligrams per day. For any drinks the study showed the percentage of adolescent users is quite low, less than 10 , and that Energy Drinks were only minor contribute to overall caffeine intake in all age groups. In summary, i believe that restrictions on the sale or promotion of energy dreams cannot be supported from a clinical or scientific point of view for three main reasons. First, caffeine from Mainstream Energy drink to represent only one of many sources of caffeine, and coffee, tea and soft drinks collectively country but the majority of caffeine in the u. S. Diet. Second, the caffeine content in mainstream Energy Drinks is comparable to and some of times and often less than what is done in various coffee products. And, finally, caffeine intake has been established by decades of careful clinical and Scientific Research to be safe at levels found in commonly consumed beverages like coffee, tea, soft drinks and energy dreams. Thank you for your time. Thank you, mr. Coughlin. I want to begin my questions, and then if Ranking Member thune returns well go to him, and then senator markey. And thank you all for being here again. Appreciate you taking the time, and we have contrasting points of view here. I want reiterate my thanks to senator rockefeller for giving us this opportunity to have a hearing and really the beginning, i think, not the end of what has to be an open and honest discussion. You know, i must say that i find the denials of marketing to children to be difficult to accept. And i know that mr. Sacks, youve said that the company come and im going, does not market monster to children and has never done so. And that claim has been made by the industry repeatedly, but the facts and common sense show that the marketing, promotion and pitches to kids have been open and blatant and relentless. And i just want to cite here, and ask you about, the monster army. And on your own website, you say the monster army is monster energies Athlete Development program that supports athletes ages 1321, and motor bike, skate, surf, snow and weight. Athletes from all of them are evaluated evaluated and invited to represent the Monster Energy brand. And then on the monster army webpage, the program is explained with the following statement. Most companies spend their money on ad agency, tv commercials, radio spots and billboards to try to tell you how good their products are. At monster, we choose to support the scene and are athletes, every athlete of the monster army is, every athlete in the monster army is an important piece of the Monster Energy brand. And recently, monster revise its age requirement for sponsorship to be athletes 1321, but in the past few sponsored athletes as young as six years old, and i displayed an example here. Of a sixyearold, and an 11 year old major in the monster army. I have a hard time accepting your contention that the monster has never marketed to children. That just defies what ive seen and heard a comment and what people in america have seen and heard. Mr. Chairman, i think the monster army program is exactly that. Its an Athlete Development program. The children that you have shown, i dont have personal knowledge of, they were there with the permission of their parents. We regard this as an opportunity to allow athletes to develop so that ultimately as a feeder system does note organize feeder system for extra sports. And in this way, we do work with athletes until they can develop and ultimately turned professional. We have over 90 athletes that have gone through the monster athlete system, and it turned professional and are now writing to our current World Champion in motocross started in the monster army. So we are encouraging the development of athletes. Were developing our own team of athletes. Ultimately, when they really get exposure is when they go professional them when they turn older, when they get older. The amount of that we spend on this program, senator, is very little in relation to our overall marketing budgets. So we do still say we dont market to children. This is a Development Program. Doesnt reach Young Children . Yes, it does. With their parents permission, it. As you indicated we change the age limit, to limit this to 13 and above. And we received a lot of irate parents who value the parent as being an opportunity for the kids to participate in sports and to develop. You were saying that these six and seven and 10 and 11 year olds are part of an Athlete Development program, but the marketing is a six and 10 and 11 year olds. You know, i ask you whether, in fact, this marketing is not intended to reach those young people . I dont believe it reaching them in that sense but if you let out the website, over the whole history of our website, less than half a percent were under the age of 13. Its a handful, compared to our marketing, our consumer base. It is simply not our focus. But ultimately, it is an important Development Program that we use. Let me ask you. If a tobacco company, and the analogy has been drawn to tobacco, because tobacco in the same way had a feeder program. They didnt use those words but they marketed to six and seven and 11 year olds because they wanted to develop smokers. If Tobacco Companies put a cigarette in the mouth or hand of one of those children, their denials of marketing to children would be laughed out of this building. Im hard put to accept that whatever the percentage, in terms of your investment in the marketing, that it was an intended to reach young people of that age. I can only repeat that our demographic is young adults. We regard this as we develop the brand platform which is a sporting platform, and to develop Young Athletes as they go through and eventually progress to the levels where they do become professionals and they do start competing in the major events. Let me shift to a different area. Youre aware that the American Beverage Association of monster, rockstar and red bull, and you are all members, includes in its guidelines, and im quoting here, Energy Drink Products should not promote Energy Drinks for mixing with alcohol, nor should the market Energy Drinks to counter the effects of alcohol consumption. Should not promote Energy Drinks for mixing with alcohol, and not market it to counter the effects of alcohol consumption. Now, Monster Energy produces a product thats called which is compared on its website to a very popular alcoholic beverage, cuba libre. And we will put up here these ads and promotions. On the website, it appears the following. And you probably cant read it here, but its there in the smaller print. As legend has it, a bust of the cuban, his contract delivery, holds up his drink, yells cuba libre, and the famous cocktail is born. As big fans of the drinks we decided to make our own, substituting our tried and true energy planned for the alcohol and adding a squeeze of sweet line. We know it sounds crazy, but dont knock it into you try it. You are going to love it, because its a new kind of buzz. Doesnt that marketing violate the American Beverage Association standards . No. Quite the opposite. Its actual intended to be a nongallic version of the drink. Its to appeal to our consumer demographics which is adults and sent to a nongallic version. The storylines were generally used at monster are intended to be lighthearted, really puffy, with communicating with our consumers. But this is intended to be, not to encourage consumption or mixing. On the contrary. Its intended to substitute for it. Spent your contention is that this marketing tactic is a way of telling young people dont drink . Absolutely. We do not encourage the market, take your of that particular drink, you know, for mixing at all. So the glorification of cuba libre is a message that young people should stay away from alcohol . Not a message to young people. Its a message to our consumers, including adults that this is how it was border we are just try to tell people how we came up with the drink, how this is something that is fun and different. Its very lighthearted. Thats the intention. Let me call your attention to the nitrous line. Monster nitrous line was renamed the antigravity monster, line is displayed and im quoting, we supercharge our Monster Energy base, then injected it with nitrous oxide for a unique texture, and buzz that is bigger than ever. This is no with it, but it will with you good. Spent you know the phrase whip it, a pressurized canister such as a whip cream canister to get high by in hailing the nitrous oxide pressurizing they can like a lot of drugs, whip it are really not good for you. They can cause hearing loss, liver and kidney damage, Central Nervous system harm, other kinds of physical and emotional damage. Is that in any way related to the use of nitrous oxide or other drugs . No. Again, its just a lighthearted way of just communicating. Thats the marketing team. They are bobby more aware of the term than i am. But it was just intended to be lighthearted. I just dont but thats encouraging anything. Its just thing this is it will give you a good energy boost. Thats all were trying to say it and talking delay much of our consumers. Again, its lighthearted, only intended not intend to mean anything other than that. Spent my time has expired but well have another at least one or more rounds. I want to yield to translate. Thank you, mr. Chairman. Mr. Coffman, critics of the Energy Drink Side accord Mental HealthServices Administration or samhsa stating the number of americans Emergency Hospital visits involving Energy Drinks doubled between 20072011. The more than 20,000. And im wondering how you interpret those findings . Senator, im not only with the support. Its been mentioned several times today. I dont believe that report, because its only a snapshot of emergency room visits. Really get that any causal relationships between Energy Drinks, the ingredients and Energy Drinks, and the reason that the individual showed up at the emergency room. There are many limitations in the report. When someone comes to the er, there is no indication of how much of any specific product they drink, including other products that may contain caffeine. The report points out that over half of the young adults who reported, you know, for whatever reason they needed to report to the er, actually admitted to the use of alcohol and drugs of abuse. And i actually think they probably underreported that when they arrived at the emergency room. And so this snapshot, this 20,000 during this period between 20072011, there were actually 136 million visits to the er by individuals. And so 20,000, and is equal to tony g would call in the clinical world is not a large number, and i think there are limitations in this dataset is just never seems to come out. Let me direct this to the folks on the panel representing the various Energy Drinks. The drink ingredients often include things other than caffeine, which has been pointed out such as guarana, taurine and vitamins. How do you test your products in the ingredients in your products to ensure that their safe and there are no negative Health Effects from those . Ill take that question. Am i on . Yes, thank you, senator thing. Rockstar as an independent expert panel that reviews are key ingredients and use levels and rockstar Energy Drink Products, all the beverages, and they concluded unanimously that the intended use of the ingredients come after investigating, using peerreviewed scientific papers as a basis for their opinion, and they investigate them and they say that the use of these key ingredients, alone or in combination, and rockstar beverages is generally recognized as safe, based on scientific procedures established by the United States food and drug administration. So we rely upon our scientists to that our products to make sure they are safe. As we said, safety is our number one concern. Consumer safety. Any of the others care to comment . Ms. Taylor . Yes, center. I think it bears, its worth mentioning that there is no source of any other stimulant, or no source of caffeine in red bull other than the caffeine itself. So that bears mentioning, and then red bull has a long history, of course. I would cite the european federation, excuse me, the organization of European FoodSafety Authority which is the rough equivalent of the United States fda completed a tenure review of the greatest of red bull and conclude that there was no of the increase in red bull spent when you develop and implement your Marketing Campaigns, a lot of discussion about who youre targeting with that advertising. How do you ensure that Energy Drinks are not marketed to children . Again, any of the drink wraps spent i think would look at the demographics to try to portray the person of an image of what were trying to establish for the brand. We do so, our principal platform where we spend probably, well over half of our funds are on motorsports. But like any sport, whether it be basketball, baseball, football, the audience is a very wide audience and the audience is going to comprise children, or its going to comprise teenagers, or its going to comprise older people than our democratic. But we look at the demographics and we generally try and focus on the sports that are most appropriate for our target demographic. So you cant exclude other demographics. And if you look at some of the sports that we do sponsor, weve got some this is to six. One of the sports that people sometimes cite assessing its an action sport, does that anyway skew younger . The average age of the views of the x. Games which is the premier platform for Action Sports is in their 30s. So yes, you will have younger, your teenagers at that event watching the event. But thats a general try to do. You simply cant have a magical wand and cut off anywhere, whether its actually doing or whats on tv. And so we just try to get to sports that really represent our brands lifestyle but as i indicated in my remarks, i think would be very difficult for us and we would alienate our adults, these young adults if we were to try to target our marketing of focusing on events that were primarily attractive to young teens or children. It wouldnt work. Theres just the way you can exclude them, nor to any other Beer Companies or Alcohol Companies exclude them when they advertise at normal sporting events. One of the issues that service with regard to Energy Drinks has been the classification either as a Nutritional Supplement or traditional beverages. Its my understanding that while red bull has always been classified as traditional beverage, monster and rockstar recently switched marketing the products as Nutritional Supplements to traditional beverages. And will continue to do so. Rockstar will comply with advance reporting even though not required to do so, rockstar is volunteering with the Nutrition PanelGoing Forward and is very proud of its record in food safety. Thank you. Mr. Sacks, you want to comment on that distinction . When we are originally launched rockstar in 2002 we got it right from our legal regulator and they told us Power Products qualified to be labeled as a supplement because they contain supplements and also as a conventional food because ingredients we believe were related. Based on their advice we elected to label a product as dietary supplements. We included a warning label from the outset as i indicated and we continue at that time, most of the other Energy Drinks were labeled as supplements. Over the years and more recent years many of the energy drink labels have changed on major Beverage Companies as well. Earlier at the end of the year, it has been ridden in the press about the fact, the suggestion that monster was marketed to somehow avoid the regulations as a food. We felt it was unfounded and no basis for it because we fought our product was equally qualified as a food and as the industry tended to move to the food we felt there was no purpose in a supplement and we notified the fda and made the change. It didnt resulting change in formulations. We had a different type of warning label unenforceable mens and elected to falling again with the industry, we provide the caffeine content of our product per serving and care and also continued to have the warning label that should be consumed responsibility without being recommended for children. It is a nonevent from that point of view. My time is expired. Senator martin . Thank you. Your company has indicated in testimony and previous letters to senator blumenthal and senator durbin and to me that all your marketing practices are intended to target individuals 18 to 35 and you follow American Beverage Association guidelines to not promote them to children. So my question to you is does this individual who is shown in one of your facebook albums appeared to be in your target marketing demographic . Are we looking at the childs . These the board and energy drink . That is correct, that is not in your demographic. Entirely under 12 years old. This child is wearing and holding rock star branded paraphernalia and a can of Rockstar Energy drink what appears to be a company promoted event and your company has posted this on its face book page with the tagline rockstar and for life. Iec no reason why we should not conclude your company is intentionally promoting products to children like this in order to make consumers just like this facebook promotion says. Hook them early, keep them for life, the rock star for life makes a lot of sense to me as a marketing promotion. This is a single instance among us huge amount of Marketing Campaigns but i will address this single photograph in the following manner one, is likely that child is accompanied by his parents begin Todays Society is hard to imagine anyone permitting the child with a degree of danger associated with children being a long it is difficult to imagine any child under the age of 12 is wandering alone at an event. What we will do, this is one of many examples we have found and we will give all the examples to you so you see it is not an isolated instance but a pattern of conduct in terms of using children as a way of making these kids think of themselves as rockstars for life. Mr. Sacks, in your testimony and correspondence with myself and senator blumenthal and senator durbin you are a company as well, does not market to children and stated Monster Energy complies with voluntary American Beverage Association guidelines and instruct that Energy Drink Companies should not market to children. I was listening to your conversation with senator blumenthal in making reference back to smoking and how the Tobacco Industry has a product problem and it is this a couple thousand people die each day from having smoked. The Tobacco Industry has to find new customers. It turns out replacing those customers is not easy since statistically if someone reaches the age of 19 and has not started to smoke yet yet they are highly unlikely ever to smoke. So that is our Real Marketing problem for an industry. Your old customers are dying and your new ones cant be influenced after page 19 and 20 to start up so obviously getting younger kids to start is always traditionally part of the Marketing Strategy. So my question is obviously based on what appears to be kind of a pattern where we are listening to arguments made about how hard it is to segment out these younger kids, they are part of the Larger Population but yet we know that is where a big part of these problems are. My first question to you is many of your products are distributed by third parties. Our distributors contractually bound to prohibit promoting or sampling of your product to children . I do not believe they are contractually bound to do so. They are independent companies and they follow their own rules but they do take into account our guidelines and you think they take into account your guidelines . Do you use your power as the source of this product which they sell to ensure that they follow their guidelines . I think we do, we recently took steps to write to them and communicate to them. What is it you tell them they dont want you to do with their product . Personally not market to events that have locally been what is the penalty they pay if they do market to kids . Ultimately there is a penalty that the company would your company with a broad distribution of your product by these companies if they did market to children . We would have to look at what our rights would be, we have to your own contractual rights, would you get these third parties distribute to children, withdraw the product from them . You could put that in your contract. Would you be willing to do that . These are contracts that exist as long term contracts, we cant change the contract. What about any new contracts . Would you agree to new contracts that would not be allowed to be marketed to children . In new contracts we will look at discussing and putting in a clause Going Forward. Do you actually know if these third parties market to children or not . Do you have that information inside of your company . One of the instances we found that we had done so and we took steps to terminate those marketing, that they should not follow the marketing. You do know what is going on with these thirdparty distributors . And you are monitoring their activity to make sure they did not we are far more aware of it now and it wasnt done as strictly in the past. We are looking at monitoring and trying to monitor. Again, the key here is what is the penalty the distributor would have . Obviously they have not lower level of concern about your Corporate Reputation . What would be the penalty . What would be the prices they would have to pay . Do you have any thoughts about that . Any warnings at all . It is a written warning and the way we could deal with it would be to look at not working with them to provide funds for marketing and contributions for marketing which you do all the time would you agree it would require them not to market to children contractually as part of receiving access to your product for those companies to distribute . I would be favorably inclined to see what we could do legally. We have existing contracts i am not talking about new contracts, not old ones. Willing to include in those contracts requirements that theyre not the distribution . Yes i would . Would you, miss taylor . Are distributors and not allowed to market on behalf, all the marketing and standing directly for us. Miss weiner . Adelphia turcotte trek there would seem to be agreeable claus. Thank you, mr. Chairman. Thank you, let me ask mr. Sacks and mr. Weiner, would you be willing to make the same commitment that red bull has made, most officiallyespecially the commitment not to encourage or condone excessive or Rapid Consumption of Energy Drinks . That is among the commitments red bull has made. Would you be willing to make the same commitment . We just heard them for the first time. Let me ask that one in particular, the commitment not to encourage or condone excessive or Rapid Consumption of Energy Drinks . I dont believe we do that currently. You would be willing to make that commitment. I believe it sounds like something we dont encourage Rapid Consumption so it would not represent a change for us so consequently i dont see it would be an issue. You do commit to it. It does seem it would be something we could do. We have again phrases we looked at as lighthearted and puffy but we have taken from from our hands and we would be prepared to make that commitment. Would you each be willing to make the commitment you will not say the larger sizes, more caffeine or higher concentration of caffeines of our better or have a better, stronger effect, a i am quoting from the letter. Miss weiner. That would seem on the face of it to be reasonable commitment, yes. Mr. Sacks . I would need to look get it in context and look at our marketing because i dont necessarily follow that high concentration is necessarily not better. It all depends on the ultimate level of caffeine that is consumed but i would be prepared to review it and look at it and see what we could come to on that request. Would you all commit that you would not use six or 11yearolds, in other words anyone under 18 in any of your marketing or promotion . I believe we will commit to use, not anybody who is a child. I dont believe we would commit to not use anybody under 18. We believe our product is safe for teenagers and theres no reason why teenagers should not be part of being able to be able to assume the brand or perform. What about 6yearolds and 11yearolds. I said we would be prepared to commit to children, children is 12 and under. Miss weiner . Rockstar is committed to not recommended for children under 12. According to independent expert panels, a key ingredient of these levels a 13yearold appeals to a 6 or 7yearold . I dont agree with that. I dont. Mr. Sacks . No, most of our teenage what about you, miss taylor . I cant say what will appeal to a child but red bull has not and will not ever market to children. We do believe the consumption of Energy Drinks to teens is safe but again as the matter of strategy and differentiation we have chosen 18 to 34 as our target demographic and that to which we are committed and that is evident particularly over the last two years. I want to say i welcome the steps you have taken and i dont have time to go through each of them asking mr. Sacks and mr. Weiner with that they would make that commitment, to some, not to others. I would ask you as part of your written response to the questions i am putting in the record that you indicate whether you are willing to commit to the same conditions and restrictions that red bull has adopted in its communication to this committee and recognize that you havent had time to study them here. Red bull has commented that they manufacture and produce their product in 8 counts and 12 oz cans. Rockstar and others market their drinks in 16 ounce cans predominantly. We have two servings per can, the caffeine in rockstar is between 116240 milligrams per container. I want to make it very clear that coffeehouse coffee contains 330 milligrams of caffeine in a 16 ounce container and the same coffee house you can go to the counter and find espresso shot that contains 75 milligrams an ounce of caffeine and throw it into the coffee and you could wind up in that 16 ounce cup with over a thousand milligrams of coffee and teenagers frequently frequent these coffeehouses every day of the week, they are the biggest consumers of coffee at these coffeehouses. It is important for this committee to understand that the largest according to this report, the largest intake of caffeine by teenagers is not coming from Energy Drinks. We feel we have been unfairly accused of being we are being demonized in a sense. We feel if youre going to look at caffeine you must in all fairness to all of us look at caffeine that is coming to these teenagers from coffee and further to the point power expert panel has reviewed the Consumption Patterns from this report and other data that the fda commissioned and they have according to Peer ReviewedArticles Research to the literature and their Expert Opinion they have no problem with person 13 to 17 consuming caffeine contained in our products. This is an area at where the old saying a picture is worth a thousand words, we have seen pictures here which we would never see a copy manufacturer, a coffee retailer, coffee meaning of the standard, dont want to sing aloud brands, but we dont see coffee drinkers on skateboards war in the types of ads the we have seen today. We heard this argument at nauseam. I mean no disrespect. We heard that argument repeatedly. I am simply asking that you go through the red bull matter and respond in writing. I dont want to press you here which would be unfair if you havent had a chance to read the letter. Going to miss taylor, would read bull be willing to make a commitment that it would place a label on its product skating not recommended for consumers under 18 years old . We would not feel that would be an appropriate move. We do have a label that reads not served to children and we stand by that. What i am asking about 18yearolds. The reason we want more label our products as not appropriate for those under 18 is the following. Red bull is safer teens and teens consumption. We dont want to send the wrong message and we think that is important. The other reason is we believe the advantage of good timing in the sense that the fda is getting ready to undertake a study of st. Peterss caffeine. If differently from in the past the fda were to conclude there was an issue for the consumption of caffeine by teens and if the industry of caffeine producing beverages would therefore agree to limit the sale of their products to those under 18, we would be part of the Larger Solutions so i suppose that would be a conditional response. Thank you. I want to give dr. Schneider and dr. Harris and opportunity to respond to what you have said so far. Dr. Schneider, sorry. In looking at these drinks, and the big issue is it is not just the caffeine we are looking at. It is caffeine and other substances in these drinks. Apportions size, we know that it impacts on basically every system and a childs body and i would be hard pressed to be ok with child of 13 versus 14. My favorite picture is eighth grade boys, fourteen years old, some of them look like they are 6 and some of them look like grown men with beards. Theyre not all the same and lessons are growing, their bodies are changing, their minds are changing and the effect of caffeine on this group is not addressed in a lot of the adult studies. There are many studies on adults. The studies that look at children, far fewer rand more concerned because their bodies have other tasks to perform. Looking at the health and welfare of children which includes adolescence as part of that it is important to understand these drinks contain caffeine, they contain other substances, potentiate the caffeine, even if the caffeine is labeled as x amount of caffeine what are the other components ultimately do to that number. This is why we look at it in a different way. The other part of it is all caffeinated substances are addictive. I do not believe any of us, we can all do this to a certain degree as adults but i dont think any of us want to do anything addictive in terms of children. One thing i would like to put in is there are kids who have a whole host of medical issues. This is a substantial proportion of the population that has been growing, has things like attention Deficit Disorder where they may already be on stimulants so they focus in school. These kids are substantially higher risk of taking one stimulant they have been medically prescribed in dosage that we know what they are getting, it is very clear, it is a prescription and is written with a certain number of milligrams in it but we know those kids can use other substances on top of it and there is concern about the Health Effects for that particular group which is also a growing group. I think again, the takehome message from my perspective, these drinks have more than caffeine in them in general that are really part of the real concern. We dont want kids using anything that is addictive that could possibly cause them to die. We know that parents really mean well but the parents need education. I have had more than one opportunity prepared for giving their kids Energy Drinks. I have been on abc because parents of 2 to 4yearolds before they went on stage for giving their kids Energy Drinks. I dont think these parents were doing anything they thought was wrong. I really believe these parents thought they were just giving their kids more energy. Caffeine and caffeine toxicity gets looked at in a milligram per kg. If you are little you weigh less. You could be 14yearolds, and you could be 14 and you could weigh 50 pounds so to meet distinguishing between 12, 13, 14 is not so clear and education of not just it is not just labeling, it is education, is having a label that parents would Say Something is important here that i need to take a look at this label and understand my teenager, my child, maybe they shouldnt be drinking it. Number one, making labels clearer in terms of what the content is, number 2, really just making sure that the marketing, theres a little bit of a different strategy and my hope is people get more educated and again we need more research to look at further impact which i think we are all 100 in agreement on this panel that is something we want to see but again, looking to say that these drinks from the view of the American Academy of pediatrics should never be consumed by children and not just children but by children and adolescents which is what the aap represents. On marketing, if you take marketing 101 you will learn that marketing is aspirational so if you are showing an 18yearold in an ad or appealing to a 15 or 16yearold who wants to be grown up and so i think that that is one thing to recognize that if there including 16yearold in their ads they are really appealing to younger kids. Another thing is we heard a lot about they cant control who sees their marketing, that simply isnt true. For example, monsters web site, it overindex teens, meaning teens are more likely to visit that website than the population in general so it is appealing to teens and we concede that with the data that i am sure they have available. I would also like to say that there are other ways to not market to teens, facebook, if you could block anyone under 18 being able to access your facebook page, that is what Alcohol Companies do, even what captain crunch does, it doesnt market to adults. It is definitely possible. The last thing i would like to say is we havent talked at all about mobile marketing but that is where marketing is going in the future so not only will kids be able to access this marketing on the internet, they will be able to access it on their phones, the company will be able to know that the child is going into a Convenience Store and can send them a message about an energy drink and doctors should not be allowed. The company can stop it if they want to. Thank you very much. I apologize that i have to leave to preside over the senate. I am going to turn the questioning to senator marky for the final round, thank you for your cooperation and your information and testimony. I am sure we will be continuing this conversation and discussion and i look forward to continuing our Work Together, thank you so much. At the end of the hearing when senator marky is finished we will adjourn and the record will remain open for one week for additional questions and responds, thank you. I thank the gentleman. We pull funds more kids from rockstar. We will find some more. We are going along so that it is not just an isolated may i respond to that . I would like to say a couple things about what we mean by schneider. The word rockstar, of the want to tell you how all we mean it. This means someone very successful, someone who is the winner in life. We in our company, our accounting for when we encounter and who does a great job we say you are a schneider. These are your web site. I am aware of that. Im trying to differentiate the concept of the term rockstar and how we see it. We are not encouraging the drinking of the product by having that