Stock prices for major alcohol manufacturers and distributors fell Friday morning following a new advisory report from Surgeon General Vivek Murthy. The report called for Congress to mandate cancer risk warning labels on all alcohol products, citing its role as the third leading preventable cause of cancer in the United States.
The report highlighted that while alcohol consumption is linked to approximately 20,000 cancer deaths annually in the U.S., nearly 75% of Americans are unaware of the increased cancer risk associated with drinking. Worldwide, alcohol contributed to an estimated 741,300 cancer cases in 2020, with nearly a quarter attributed to moderate consumption of fewer than two drinks per day.
Investor concerns over the advisory were evident at the market’s opening. By 10:30 a.m. EST, Brown-Forman, makers of Jack Daniel’s whiskey, saw a decline of over 1% in stock value. Anheuser-Busch dropped 2.25%, while Boston Beer Company experienced a sharper fall of nearly 2.6%. Constellation Brands, the distributor for Modelo, Corona, and Mondavi wines, reported a drop of approximately 1.25%.
Murthy’s report has sparked debate over whether Congress will heed his call for new warning labels. Some Republicans, including Rep. James Comer (R-KY) and Sen. Ted Cruz (R-TX), have criticized what they view as overreach by public health officials, raising concerns about government intervention in personal lifestyle choices.
The advisory aligns with the “Make America Healthy Again” agenda of President-elect Donald Trump and his Health and Human Services secretary nominee, Robert F. Kennedy Jr. Both are vocal advocates for public health reforms and abstain from alcohol consumption. However, the political and economic implications of implementing warning labels remain uncertain, leaving the alcohol industry bracing for potential regulatory changes.
