McDonald’s, which currently has nearly 14,000 restaurants in the U.S. alone, made the announcement Tuesday, but it didn’t say whether the test would be expanded to other locations. The company only said that it was just gathering consumer feedback on the energy drinks.
If the restaurant chain decides to expand sales of Monster energy drinks in all its locations, the biggest energy-drink maker may see its sales soar even more. Monster Beverage Corp has the largest sale volumes, and recently surpassed arch-rival Red Bull.
On the other hand, energy drinks aren’t very popular at restaurants, despite the huge success in stores and soda-machines. Following the announcement, Monster’s stock leaped 5.2 percent on Tuesday. The spike occurred after an analyst released the news that McDonald’s began the test-selling in Detroit.
But putting Monster on McDonald’s menu, may help the burger chain as well. The company tries to make a comeback after three straight years of weak sales as customers weren’t content anymore with what the company had to offer.
In North America, energy drink sales rose 6.4 percent in 2014, while soft drink sales slipped 1 percent. This summer, Coca-Cola became a major investor in Monster after buying 16.7 percent of its shares for more than 2 billion. Coca-Cola seemingly also wants to revive sales amid diminishing sales in 10 consecutive years.
Yet, McDonald’s and Coca-Cola are business partners for a long time, since the restaurant chain markets the beverage giant’s sodas, Minute Maid juice, and Dasani bottled water. The burger giant used coca-cola items in its campaigns to lure more customers in.
In 2014, however, McDonalds stopped marketing the sugary beverage to kids among concerns that added sugar may fuel childhood obesity and type 2 diabetes nationwide. Other fast-food restaurants followed a similar tend.
But energy drinks also stirred hot debates as consumers and customer groups submitted hundreds of reports to the FDA about the ‘averse effects’ of these drinks. The FDA is currently investigating whether energy drinks did lead to 30 deaths and many more cases of heart problems and seizures. The American Medical Association banned advertising of energy beverages to those under 18.
But the industry says that energy drinks are safe, since they have half the amount of caffeine a Starbucks coffee has.
Image Source: atmosferaitalianablog
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