Shares of major alcohol producers in the United States and Europe fell Friday following a new advisory from U.S. Surgeon General Vivek Murthy urging cancer warnings on alcohol beverage labels.
The advisory highlights the increased risk of cancer associated with alcohol consumption, even at low levels.
The surgeon general said drinking alcoholic beverages increases the risk of developing cancers such as breast, colon and liver. He pointed out that for some cancers, such as breast, mouth and throat cancers, the risk could start with just one drink a day.
In the United States, shares of major alcoholic beverage companies fell sharply. Jack Daniel’s parent company, Brown-Forman, saw its shares fall nearly 3% to $37.10, their lowest level since April 2017. Molson Coors, the maker of Coors Light, fell 4%, while Constellation Brands, producer of Corona beer, fell 1.3%. .
Boston Beer, maker of Samuel Adams, saw a 6% decline, the biggest since February.
European spirits makers also suffered losses, with Diageo shares hitting their lowest level since mid-December, down 3%. French spirits producer Pernod Ricard, as well as Rémy and Italian group Campari, recorded declines of around 3.8%. Brewers like Anheuser-Busch InBev, Heineken and Carlsberg also saw their shares fall between 1% and 2%.
The notice leaves implementation of the updated warning labels to Congress. However, analysts like Michael Ashley Schulman of Running Point Capital Advisors remain skeptical of its potential impact, citing Americans’ cultural acceptance of moderate alcohol consumption.
