Budhani v. Monster Beverage Company

CourtDistrict Court, S.D. New York
DecidedMarch 22, 2021
Docket1:20-cv-01409
StatusUnknown

This text of Budhani v. Monster Beverage Company (Budhani v. Monster Beverage Company) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Budhani v. Monster Beverage Company, (S.D.N.Y. 2021).

Opinion

USDC SDNY UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK DOC #: onan nc aces canna nana nanan canna nnca canna nena ns XK DATE FILED:_ 3/22/2021 AKASH BUDHANI, individually and on behalf of all others similarly situated, : Plaintiff, 20-cv-1409 (LJL) -V- OPINION AND ORDER MONSTER ENERGY COMPANY, Defendant. LEWIS J. LIMAN, United States District Judge: Defendant Monster Energy Company (“Monster” or “Defendant”) moves, pursuant to Federal Rule of Civil Procedure 12(b)(6), to dismiss the complaint against it for failure to state a claim for relief. For the following reasons, Defendant’s motion to dismiss is granted. FACTUAL BACKGROUND Monster manufactures, distributes, markets, labels, and sells espresso energy drinks blended with European milk and purporting to be flavored with vanilla under their Monster brand. Dkt. No. 30 (‘Complaint” or “SAC”) J 1. The drinks are available to consumers from third party retail and online stores, Monster’s website, and Amazon.com. Id. §] 2. One Monster brand espresso energy drink identified by Plaintiff Akash Budhani (‘Plaintiff’) is the Espresso Monster Vanilla Cream Triple Shot (the “Product”). Id. 3. The front label of the Product contains the representations “Vanilla Cream,” “Triple Shot,” and an image of the vanilla flower. Id. The front label appears as follows:

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Dkt. No. 33-2 Plaintiff claims that he purchased Espresso Monster Vanilla Cream Triple Shot on one or more occasions. /d. 88. Plaintiff alleges that the reference on the Product’s front label to “Vanilla Cream” would convey to a reasonable consumer that the product contains vanilla sourced from vanilla beans, produced from a fruit pod on an orchid plant that originated and was first cultivated in Mexico. Id. J] 14, 15. This bean is not consumed alone—it is heated in the sun for weeks and then placed in ethyl alcohol, where its flavor constituents are extracted and the solution becomes known as vanilla extract. Jd. ] 16. Plaintiff does not allege that the Product does not taste like vanilla; rather, Plaintiffs claims center on the ingredients that are included in

the Product or that contribute to the vanilla taste. Specifically, Plaintiff claims that the representations on the Product’s label are false and misleading in several alternative respects: (1) it conveys that the Product contains extract from the vanilla bean, whereas in fact the Product “contains trace or a de minimis amount of vanilla from real vanilla beans from the vanilla plant, id. ¶ 4; see also id. ¶ 44; (2) it falsely conveys that the Product’s taste is provided predominantly

or exclusively from vanilla beans, whereas other ingredients contribute to the vanilla taste, id. ¶ 68; see also id. ¶¶ 45, 63, 89; and (3) it fails to disclose that the Product contains artificial vanilla, specifically vanillin and artificial flavors maltol and piperonal. Id. ¶ 44. Plaintiff relies on a consumer survey he commissioned to support these contentions. According to Plaintiff, the survey demonstrates that over 56% of respondents believed that the flavor in Defendant’s Product “came from vanilla beans from the vanilla plant.” Id. ¶ 43. In addition, Plaintiff offers results from a Gas Chromatography-Mass Spectrometry (“GC-MS”) test performed on the Product, which he alleges demonstrates that the “Natural Flavors” listed in the ingredients may contain some vanilla but that the Product is “predominantly flavored by non-

vanilla flavors including vanillin.” Id. ¶ 63. Plaintiff contends that the amount and proportion of vanilla has a material bearing on price and consumer acceptance of the Product. Id. ¶ 107. Plaintiff alleges that when he purchased the Product, he relied upon the Product’s front label claims for his expectation that the Product’s taste came exclusively and/or predominantly from vanilla beans from the vanilla plant. Id. ¶ 89. Because of Defendant’s false and misleading statements and omissions, Plaintiff alleges, the Product was worth less than what he paid for it. Id. ¶ 92. If the true facts had been known, Plaintiff claims that he would not have purchased the Product or paid as much for it. Id. ¶ 111. Plaintiff also claims that Defendant’s labeling violates Food and Drug Administration (“FDA”) regulations governing how food flavorings are labeled. Id. ¶¶ 65, 67. Those regulations set forth the requirements for how a manufacturer or distributor must label foods “with respect to the primary recognizable flavor(s),” including what is called “the characterizing flavor.” 21 C.F.R. § 101.22(i). They provide that if the labeling or advertising of a product

makes any direct or indirect representations with respect to the primary recognizable flavor(s), by word, vignette, or other means, or if for any other reason the manufacturer or distributor wishes to designate the type of flavor in the product other than through the statement of ingredients, such flavor shall be considered the characterizing flavor. 21 C.F.R. § 101.22(i). If a food “contains no artificial flavor which simulates, resembles or reinforces the characterizing flavor, the name of the food on the principal display panel or panels of the label shall be accompanied by the common or usual name of the characterizing flavor, e.g., ‘vanilla.’” 21 C.F.R. § 101.22(i)(1). However, if a food “contains any artificial flavor which simulates, resembles or reinforces the characterizing flavor, the name of the food on the principal display

panel or panels of the label shall be accompanied by the common or usual name(s) of the characterizing flavor . . . and the name of the characterizing flavor shall be accompanied by the word(s) ‘artificial’ or ‘artificially flavored.’” 21 C.F.R. § 101.22(i)(2). Plaintiff contends that the presence of vanillin in the Product constitutes an artificial flavor, under 21 C.F.R. § 101.22(i)(2), and required Defendant to add to the front label the statement that it was “artificially flavored.” SAC ¶ 67. Additionally, Plaintiff contends that under 21 C.F.R. § 169.181(b), the Product’s ingredient list must disclose the presence of vanillin from non-vanilla sources as an artificial flavor because it is paired with vanilla. Id. ¶ 65.

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Budhani v. Monster Beverage Company, Counsel Stack Legal Research, https://law.counselstack.com/opinion/budhani-v-monster-beverage-company-nysd-2021.