Anheuser-Busch, Booze Stocks Hit By Surgeon General's Warning On Alcohol Link To Cancer

Blockhead01-03

Anheuser-Busch InBev (BUD) and other alcohol-related stocks fell Friday after the Surgeon General named alcohol consumption the No. 3 preventable cause of cancer, behind tobacco and obesity. BUD stock, Diageo (DEO) and Constellation Brands (STZ) all traded lower in early stock market action.

"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 U.S.," Surgeon General Dr. Vivek Murthy said in a news release, "yet the majority of Americans are unaware of this risk." The Surgeon General called for the health warning label on alcoholic beverages to be updated to include cancer risk, in addition to the dangers related to pregnancy, driving and unspecified "health problems."

X
Stocks Kick Off 2025 With A Downer: Apple, Affirm, MakeMyTrip In Focus
See All Videos
NOW PLAYING Stocks Kick Off 2025 With A Downer: Apple, Affirm, MakeMyTrip In Focus

Alcohol Has 'Direct Link' To 7 Types Of Cancer

The Surgeon General's advisory notes a direct link between alcohol consumption and at least seven types of cancer. They include cancers of the breast, colorectum, esophagus, liver, mouth, throat and larynx. The linkage has been established "regardless of the type of alcohol (e.g. beer, wine and spirits) that is consumed."

Among all breast cancer cases, 16.4% are attributable to alcohol consumption, the advisory indicates.

In addition to an update of the health warning label, the Surgeon General is asking public health professionals, community groups and health care providers to inform communities and patients about the link to cancer.

BUD, DEO, STZ

BUD stock fell 1.8% early Friday. Diageo slid 2.6% and Constellation Brands dropped 1.5%.

The Surgeon General's warning comes at a challenging time for the industry. The Beverages-Alcoholic industry group ranks a lowly 179 of 197 based on stock price performance and momentum.

BUD stock is down 25% from its 52-week high, with sales falling 3% from a year ago in the latest quarter.

Be sure to read IBD's The Big Picture column after each trading day to get the latest on the prevailing stock market trend and what it means for your trading decisions.

YOU MIGHT ALSO LIKE:

Join IBD Live Each Morning For Stock Tips Before The Open

These Are The Best 5 Stocks To Buy And Watch Now

IBD Digital: Unlock IBD's Premium Stock Lists, Tools And Analysis Today

How To Make Money In Stocks In 3 Simple Steps

Stock Market Forecast For 2025 Amid Trump's Return

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment