Ethics Memo Ethicacy of Five Hour Energy

Ethics Memo

Ethicacy of Five Hour Energy "No Crash Later" Claims

Recently consumer rights groups are gaining greater traction in the media with their claims that Five Hour Energy's claims of "no crash later" are inaccurate, and at worst, overstated. These claims are based on a study completed six years ago, and whose methodology is not sound (Fabregas, 2012). What's at the center of this debate is the chemical composition of Five Hour Energy and if in fact customers experience a crash after using it or not. The ethicacy of the products' claims are under attack in the media, and with the empirical studies showing evidence this is accurate. The momentum on social media continues to increase on this issue as well and the Five Hour Energy brand is in jeopardy of being negatively affected over the long-term if nothing is done. There also continues to be negative press for energy drinks as well (Zmuda, Bruell, 2012) and this latest challenge to the Five Hour Energy brand could prove detrimental if not action is taken.

Analysis and Recommendations

When confronted with negative publicity, brands will often deny the bad news or act as if it does not exist. This is exactly the wrong strategy to take. Taking this approach always invites even more criticism and scrutiny. For Five Hour Energy the advisable strategy is to fully recognize the research and also state that the company is hiring an independent research firm that will provide fully auditable results of the aftereffects (if any) of the beverage. This will immediately neutralize the claims against the brand and also show that the company cares deeply about its customers and its own ethics as well. The positioning of this with the media is that Five Hour Energy is always searching for ways to improve and serve customers, giving them the added energy they need for today's challenging times where many people have two or more jobs to make ends meet. The ethics of this will also force Five Hour Energy to revaluate its own product strategies and claims as well, which overall will make the company a stronger competitor over the long-term.