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Abstract
Using NielsenIQ Retail Scanner data from 2021 to 2023, merged with the product-level ingredient data from Mintel Global New Products Database (GNPD), we estimate a Berry-Levinsohn-Pakes (BLP) model to evaluate consumers' revealed preferences for nutritional and functional ingredients concerning energy drinks. Results indicate that consumers have strong preferences for functional ingredients such as taurine, while showing aversion toward excessive sugar and certain mineral and chemical additives. Estimated price elasticities suggest that the demand for energy drink products is quite elastic, and generally are substitutes for one another, although some products within the same brand are complements. Simulations of three hypothetical mergers show that prices increase for both acquiring and acquired firms, profit declines for the acquired brands due to reduced market share, and consumer surplus largely decreases. The Difference-in-Difference (DID) event study of the actual Monster-Bang merger confirms similar directional effects on prices and market shares, though the magnitudes differ.