Alcohol stocks drop after US surgeon general calls for cancer warnings

Reuters01-03 23:17
UPDATE 1-Alcohol stocks drop after US surgeon general calls for cancer warnings

Adds shares of U.S.-listed companies in paragraphs 4,5

Jan 3 (Reuters) - Shares of European and American spirits makers and brewers fell on Friday after the U.S. 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, U.S. 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 BFb.N slipped nearly 3% to $37.10 in early U.S. trading hours, hitting their lowest since April 2017, while Coors Light beer maker Molson Coors TAP.N fell 4%.

Constellation Brands STZ.N, the maker of Corona beer, was down 1.3% while Boston Beer SAM.N slumped nearly 6%, its biggest drop since last February.

In Europe, shares in the world's top spirits maker Diageo DGE.L were down some 3% to their lowest since mid-December at 1352 GMT, after falling as much as 4.1% earlier.

French spirits maker Pernod Ricard PERP.PA, which owns Martell cognac, Mumm champagne and Absolut vodka, was down around 3.2%, while its peer Remy RCOP.PA and Italian spirits group Campari CPRI.MI were both down around 3.8%.

Brewers were also hit, with Budweiser maker Anheuser-Busch InBev ABI.BR down around 2%, and Heineken HEIN.AS and Carlsberg CARLb.CO down between 1% and 1.5%.

(Reporting by Anna Pruchnicka in Gdansk and Savyata Mishra in Bengaluru; Editing by Susan Fenton and Devika Syamnath)

((anna.pruchnicka@thomsonreuters.com; +48 58 769 65 14;))

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