Molson Coors, Diageo, Boston Beer Tumble As Surgeon General Warns 'Alcohol Consumption Increases' Cancer Risk

Surgeon General Vivek H. Murthy issued an advisory Friday warning about the cancer risks associated with alcohol consumption and calling for updates to health warning labels that haven't been revised since 1988. Murphy also stressed the need to reassess recommended alcohol limits, citing mounting evidence of its role in cancer development.

The advisory sent alcohol stocks plunging across the board in Friday morning trading.

"Higher alcohol consumption increases alcohol-related cancer risk, yet only 45% of American adults are aware that consuming alcohol increases their risk of developing cancer," Murthy wrote on X.

"Alcohol is a well-established, preventable cause of cancer responsible for about 100,000 cases and 20,000 deaths annually in the United States," Murthy stated. He added that alcohol consumption ranks as the third-leading preventable cause of cancer in the U.S., trailing only tobacco and obesity.

Murthy's advisory, noted the Washington Post, pointed to a direct association between alcohol consumption and at least seven types of cancer, including breast, liver and colorectal cancers. The Post pointed out that 16.4% of annual breast cancer cases are attributed to alcohol and that any mandatory changes to the health warning labels would need to be approved by the new Congress coming in under President-elect Donald Trump.

Alcohol Makers, Distributor Stocks React

Stocks of major alcohol companies fell sharply following the announcement, according to Benzinga Pro.

Brown-Forman Corp. (NYSE: BF-B) producer of Jack Daniel's whiskey, is down 2.58%. Constellation Brands Inc. STZ, distributor of Corona beers and Mondavi wines, declined by 1.5%. Anheuser-Busch InBev BUD is down 1.84%, Molson Coors Beverage Co. TAP is down by 3.37%% while the Boston Beer Co. Inc. SAM, maker of Sam Adams, plunged 4.26%. Diageo plc DE is trading down 3.15%.

Photo: Courtesy of U.S. Department of Health and Human Services