Drink Makers’ Stocks Slide On Surgeon General’s Cancer Warning Proposal: Retail Stays Divided
By Stocktwits Inc | First Published Jan 4, 2025, 12:47 AM ISTVivek Murthy highlighted that alcohol is the third leading preventable cause of cancer in the U.S., linked to about 100,000 cases and 20,000 deaths annually.
Shares of major alcoholic drink makers declined Friday after U.S. Surgeon General Vivek Murthy issued an advisory outlining the link between alcohol consumption and increased cancer risk.
Anheuser-Busch (BUD) dropped over 2%, Diageo (DEO) fell more than 3%, Constellation Brands (STZ) was down 1.5%, and Molson Coors (TAP) tumbled more than 7% to nearly a two-month low.
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The advisory called for an updated Surgeon General’s warning label on alcohol-containing beverages to include a cancer risk warning.
"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," he said.
He noted that most Americans remain unaware of alcohol’s role in cancers such as those affecting the breast, liver, and throat.
On Stocktwits, retail sentiment was mixed for alcohol stocks. BUD and DEO maintained ‘neutral’ sentiment, TAP’s was ‘extremely bearish,’ while STZ saw ‘bullish’ sentiment.
Optimistic investors downplayed the selloff, with one user commenting, “people want their drink, people are still smoking.”
Another user suggested the dip was an overreaction, while another said they were expecting a bounce.
In addition to proposing updated warning labels, the Surgeon General’s advisory called for reassessing recommended alcohol consumption limits and boosting public education on alcohol’s cancer risks.
The beverage sector has struggled over the past year, with BUD losing 23%, TAP down over 10%, STZ dropping nearly 10%, and DEO shedding 14%.
While the selloff deepened on Friday, retail investors appeared divided on the long-term impact of the advisory on alcohol-linked stocks.
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