Business

Monster stock jumps after CEO says company repositioning drinks

A little labeling change delivered a big jolt to Monster energy drinks.

Shares of Monster Beverage jumped as much as 5 percent after CEO Rodney Sacks told trade publication Beverage Digest that the company is repositioning its drinks so they would no longer be classified as dietary supplements.

The labeling change, which comes amid heightened scrutiny of the health impact of energy drinks, means Monster beverages would be sold as traditional drinks and fall under stricter federal food guidelines.

Energy drinks are often marketed as dietary supplements that are regulated more loosely than traditional drinks like soda, leading to concerns about their ingredients.

In December, Sacks told analysts that he could address those issues by changing the labeling and selling the drinks as a food product.

The stock ended up 2 percent, or 93 cents, to close at $47.69.