Alcohol stocks drop after US surgeon general calls for cancer warnings on drink labels
Unclear when or if the surgeon general’s suggestions will be implemented. Decision to update the label will ultimately be made by Congress
Shares of European and American spirits makers and brewers fell on Friday after the US 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, US 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 per cent to US$37.10 in early US trading hours, hitting their lowest since April 2017, while Coors Light beer maker Molson Coors fell 2.7 per cent.
Constellation Brands, the maker of Corona beer, slipped 1.3 per cent, while Boston Beer was down 3 per cent after falling as much as 6.4 per cent.
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.
