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The Key Takeaways
- Vivek murthy, Vivek’s Surgeon General said alcohol was the third most preventable cancer cause and that it should carry a warning label stating its cancer-causing nature.
- He noted that many Americans do not know that drinking alcohol increases their chances of getting seven different types of cancer.
- According to the U.S. Alcohol and Tobacco Tax and Trade Bureau, Congress will need to take action to change warning labeling.
- Stocks in companies that distribute and produce beers, wine and spirits dropped Friday.
Vivek M. Murthy, the Surgeon-General of the U.S. Department of Health and Human Services said Friday that the drinking of alcohol is the nation’s third most preventable cause of death from cancer.
According to HHS (of which the Surgeon-General is part), less than half of Americans know that alcohol can increase their cancer risk. This is despite the fact that there are seven different types of cancer that have been linked to drinking. In order to raise awareness about the dangers of drinking alcohol, Murthy stated in a Friday press release that warning labels should state this. Also, consumption guidelines need to be revised.
“Alcohol is a well-established, preventable cause of cancer responsible for about 100,000 cases of cancer and 20,000 cancer deaths annually in the United States – greater than the 13,500 alcohol-associated traffic crash fatalities per year in the U.S. – yet the majority of Americans are unaware of this risk,” Murthy claimed.
HHS states that drinking alcohol increases the risk of breast, esophagus or esophageal, gastrointestinal, liver, oral, throat, and voicebox (or larynx) cancer. Smoking tobacco and obesity present the highest cancer risks when examining factors which can be controlled. Department of the Interior: People have control
Warning labels would require Congressional approval
The U.S. Alcohol and Tobacco Tax and Trade Bureau reports that federal officials have begun updating nutrition guidelines regarding alcohol. But, any changes to warning labels on alcoholic drinks will require the approval of Congress.
Current warning labels on alcohol caution that drinking while pregnant can cause birth defects, and that alcohol can impair one's ability to drive and cause health problems.
This message hasn't changed since approved in 1988, according to the Consumer Federation of America, a nonprofit consumer advocacy group that has been urging the federal government and Congress to note the link between drinking and cancer in warning labels.
Alcoholic Beverage Company Stocks Slide
Investors weighed the impact of the health warning on alcohol sales when assessing shares in companies that produce and distribute beer, wine and spirits.
Diageo shares (DGE), which make Johnnie Walker whisky, Tanqueray Gin and Guinness Beer among other brands of alcohol, dropped 3.7% Friday. Anheuser-Busch InBev, Molson Coors Beverage, and Boston Beer, all beer companies, fell by 2,1%, 3,4% and 38%.
Alcohol companies may be affected by the incoming U.S. president Donald Trump’s comments about increasing tariffs, and cultural changes away from alcohol.
The Alcohol Consumption Rate Has Dropped
Concerns about the adverse impacts of drinking had begun to affect alcohol sales before Murthy's announcement. Last month, Deutsche Bank Securities’ analysts noted that people of all ages were reducing their alcohol consumption because of health concerns. They also recommended holding several alcohol companies.
Analysts at Deutsche said that consumers may be drinking less alcohol due to financial concerns, changing social norms, and weight loss drugs such as Wegovy or Zepbound.
NielsenIQ, an American market research company, reported that the number of bottles and cans of alcohol sold in major U.S. retailers and convenience store chains fell by 0.9% from mid-December to the same period last year, and by 1.4% for the two previous years. The data revealed that a few more bottles of spirit were still sold.
IWSR reports that the dry January tradition, where people abstain from alcohol to start a new year, has started to spread into other months. According to the group, this tradition has a tendency to lower sales during January and February.
"These troughs are getting consistently lower – a clear indication of growing moderation and the ongoing momentum of Dry January," said Marten Lodewijks, president of IWSR’s U.S. Division.
Updated after publishing to include the closing price of shares, context and additional analysis.
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