Shares of major alcohol companies tumbled after U.S. Surgeon General Vivek Murthy called for cancer warning labels on alcoholic beverages. Murthy’s advisory highlighted that even moderate alcohol consumption increases the risk of several cancers, including breast, colon, and liver cancers. The proposed labels would aim to inform consumers of these risks, although implementing the changes would require Congressional approval.
Companies like Jack Daniel’s parent Brown-Forman and Molson Coors saw their stock prices drop by 2.5% and 3.4%, respectively, while European brands such as Diageo and Pernod Ricard also faced declines of around 3%. Constellation Brands and Boston Beer experienced smaller losses, but the announcement still spurred broader market concerns. Brewers like Anheuser-Busch and Heineken were also affected, with stock prices dipping between 0.8% and 2%.
Financial experts expressed skepticism about the potential effectiveness of warning labels in reducing alcohol consumption. Some likened it to the limited impact of cigarette pack warnings on smoking rates, pointing out that many Americans view moderate drinking as relatively safe.
While the Surgeon General’s recommendations sparked immediate economic ripples, the future of such warnings remains uncertain, with legislative action required for any changes to alcohol labeling laws.
