Shares of alcohol producers tumbled after US Surgeon General recommended placing cancer warning labels on alcoholic drinks.
US Surgeon General Vivek Murthy called on the beverage alcohol industry to include warnings about cancer caused by alcohol, pointing out that the beverage is the third leading preventable cause of cancer in this country, after tobacco and obesity. His office clarified that all types of alcoholic beverages contribute to the risk.
Shares of major alcohol brands took a hit following the advisory. The parent company of Jack Daniel’s, Brown-Forman, saw its stock fall nearly 3%, the lowest since April 2017. Molson Coors, which makes Coors Light, dropped 2.7%. Constellation Brands, which brews Corona beer, fell 1.3%. Boston Beer fell 3%, with shares falling as much as 6.4%.
In Europe, Diageo-the world’s biggest spirits producer-declined 3.7%, while Pernod Ricard, maker of Martell cognac and Absolut vodka, declined by 3% and Remy and Campari fell by at least 4.5%.
It is unclear if Murthy’s advisory will be acted on, especially with the Biden administration winding down. If Murthy is replaced by Janette Nesheiwat, who is critical of alcohol’s dangers, then the advisory could be at risk.
