Alcohol stocks plummet as US surgeon general pushes for cancer warning labels

Drinking alcohol raises the risk of cancers like breast, colon, and liver, warns US Surgeon General in a new advisory

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Shares of major alcohol producers in the US and Europe tumbled on Friday following a new advisory from US Surgeon General Vivek Murthy urging cancer warnings on alcoholic beverage labels.

The advisory highlights the increased cancer risk associated with alcohol consumption, even at low levels.
The Surgeon General stated that drinking alcoholic beverages raises the risk of developing cancers such as breast, colon, and liver. He emphasised that for certain cancers, like breast, mouth, and throat cancers, the risk could begin with as little as one drink per day.

In the US, stocks of prominent alcohol companies fell sharply. Jack Daniel’s parent company, Brown-Forman, saw its shares drop nearly 3% to $37.10, their lowest since April 2017. Molson Coors, the maker of Coors Light, slipped 4%, while Constellation Brands, producer of Corona beer, fell 1.3%.

Boston Beer, maker of Samuel Adams, experienced a 6% decline—its largest since February.
European spirits makers also faced losses, with Diageo’s shares hitting their lowest level since mid-December, falling 3%. French spirits producer Pernod Ricard, along with Remy and Italian group Campari, recorded declines of around 3.8%. Brewers including Anheuser-Busch InBev, Heineken, and Carlsberg also saw their stocks dip between 1% and 2%.

The advisory leaves the implementation of updated warning labels to Congress. However, analysts like Michael Ashley Schulman of Running Point Capital Advisors remain sceptical about its potential impact, citing Americans’ cultural acceptance of moderate alcohol consumption.