US Surgeon General Vivek Murthy has called for alcohol manufacturers to include cancer warnings on alcoholic beverages. He stressed that alcohol is the third leading preventable cause of cancer in the United States, following tobacco and obesity. According to Murthy’s office, it does not matter what type of alcohol is consumed—the risk remains.
Stock Market Reacts to the Advisory
In response to the Surgeon General’s statement, alcohol companies saw a significant drop in their stock prices. For instance, Brown-Forman, the parent company of Jack Daniel’s, experienced a 3% dip, reaching $37.10, the lowest level since April 2017. Similarly, Molson Coors, the maker of Coors Light, saw its shares fall by 2.7%. Constellation Brands, which produces Corona beer, saw a decline of 1.3%. Boston Beer’s stock also dropped by 3%, hitting a low of 6.4%.
European Companies Also Struggle
The impact wasn’t limited to the US market. In Europe, shares of Diageo, the world’s largest spirits maker, dropped by 3.7%, reaching their lowest level since mid-December. Similarly, Pernod Ricard, owner of brands like Martell, Mumm, and Absolut, saw a 3% decrease. Other major companies, such as Remy and Campari, both lost at least 4.5%.
Uncertainty Surrounds Future Action
However, it remains uncertain whether the Surgeon General’s advisory will translate into tangible action. With President Joe Biden’s administration nearing its end, it’s unclear if Murthy will continue in his position. His potential successor, Janette Nesheiwat, was nominated by President-elect Donald Trump.
Political Context and Alcohol Criticism
Moreover, Trump has been vocal about alcohol’s harmful effects, especially after his brother’s death due to alcoholism. His nominee for Secretary of Health and Human Services, Robert F. Kennedy Jr., has been open about his past struggles with alcohol and heroin. Kennedy Jr. also attends Alcoholics Anonymous meetings and advocates for those dealing with addiction.
