By Savyata Mishra and Anna Pruchnicka (Reuters) -Shares of European and American spirits makers and brewers fell on Friday after the U.S. surgeon general called for cancer warnings on the labels of alcoholic drinks. The consumption of alcoholic drinks increases the risk of developing breast, colon, liver and other cancers, U.S. Surgeon General Vivek Murthy […]
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Alcohol stocks drop after US surgeon general calls for cancer warnings
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By Savyata Mishra and Anna Pruchnicka
(Reuters) -Shares of European and American spirits makers and brewers fell on Friday after the U.S. surgeon general called for cancer warnings on the labels of alcoholic drinks.
The consumption of alcoholic drinks increases the risk of developing breast, colon, liver and other cancers, U.S. Surgeon General Vivek Murthy said in an advisory.
“For certain cancers, like breast, mouth, and throat cancers, evidence shows that the risk of developing cancer may start to increase around one or fewer drinks per day,” according to the advisory.
Shares of Jack Daniel’s parent Brown-Forman slipped nearly 3% to $37.10 in early U.S. trading hours, hitting their lowest since April 2017, while Coors Light beer maker Molson Coors fell 2.7%.
Constellation Brands, the maker of Corona beer, slipped 1.3%, while Boston Beer was down 3% after falling as much as 6.4%.
It is unclear when or if the surgeon general’s suggestions will be implemented. The decision to update the label will ultimately be made by Congress.
“Most Americans tend to believe that nearly everything is okay in moderation, thus much as warning labels alone on cigarette packs did little to curb public smoking, I expect warning labels on alcohol to have little effect,” said Michael Ashley Schulman, partner and chief investment officer at Running Point Capital Advisors.
In Europe, shares of the world’s top spirits maker Diageo were down 3.7% to their lowest since mid-December at 1530 GMT, after falling as much as 4.1% earlier.
French spirits maker Pernod Ricard, which owns Martell cognac, Mumm champagne and Absolut vodka, was down around 3%, while its peer Remy and Italian spirits group Campari were both down at least 4.5%.
Brewers were also hit, with Budweiser maker Anheuser-Busch InBev down 2.7%, and Heineken and Carlsberg down more than 1% each.
(Reporting by Anna Pruchnicka in Gdansk and Savyata Mishra in Bengaluru; Editing by Susan Fenton, Devika Syamnath and Shinjini Ganguli)