Market Overview

UK To Ban Sales Of Energy Drinks To Kids Under 16

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UK To Ban Sales Of Energy Drinks To Kids Under 16

U.K. Health Secretary Matt Hancock informed the rest of U.K. lawmakers and government officials the country will ban the sale of energy drinks to everyone under 16 years old, The Sun reported.

What Happened

Hancock justified his actions in a letter to U.K. Cabinet ministers the ban is a "precautionary approach to mitigate the potential negative effects associated with their excessive consumption by children," according to The Sun.

The U.K.'s internal government watchdog slapped the new policy with a "red rating." This is typical for new law changes, which are presented with "limited evidence available to underpin the estimated business costs."

Why It's Important

The law change in the U.K. is part of the ongoing global discussion on how governments approach "sin" products. In this case, a source close to Hancock said a "debate" can be had when it applies to "sin taxes to products consumed by adults." However, it's "more straight forward" when it applies to children.

Hancock is pushing for the new law before Theresa May officially resigns as Prime Minister with the likely replacement being Boris Johnson.

Johnson, according to The Sun, is more in favor of the government encouraging people to "do more exercise" to lose weight.

The news could impact

Monster Beverage Corporation (NASDAQ: MNST), best known for its energy drink lineup. Shares closed Tuesday at $65.79.

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Posted-In: Boris Johnson energy drinksNews Eurozone Health Care Markets Media General Best of Benzinga

 

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