The U.S. Department of Health recommends adding cancer warning labels to alcoholic beverages! U.S. liquor stocks fell in response

The U.S. Department of Health and Human Services issued a statement on Friday warning about the link between alcohol consumption and increased cancer risk, and announced plans to push for policy changes, including requiring alcoholic beverages to carry cancer warnings to reduce the number of alcohol-related cancers. This announcement caused panic among investors, leading to a drop in the stock prices of alcoholic beverage manufacturers on Friday.

U.S. Health Secretary Vivek Murthy stated that there is an "established" link between alcohol consumption and at least seven types of cancer, including breast cancer, colorectal cancer, esophageal cancer, and liver cancer. According to the announcement, even drinking one drink a day or less increases the risk of cancers, including breast cancer, oral cancer, and throat cancer.

The announcement noted that alcohol is the third leading preventable cause of cancer in the U.S., following tobacco and obesity.

"Alcohol is an established, preventable cause of cancer, leading to approximately 100,000 cancer cases and 20,000 cancer deaths each year in the U.S.—a number that exceeds the 13,500 deaths from alcohol-related traffic accidents annually, yet most Americans are unaware of this risk."

Murthy called for policy changes to help reduce alcohol-related cancers, including making alcohol labels more prominent and including warnings about increased cancer risk, reassessing drinking recommendations based on the latest research, and expanding outreach to raise public awareness of the cancer risks associated with alcohol consumption.

These proposed policy changes are similar to measures taken to reduce tobacco use, including implementing a series of mandatory warnings on packaging and in stores. The U.S. Department of Health and Human Services advises individuals to consider the link between alcohol consumption and increased cancer risk when deciding whether to drink or how much to drink.

However, changing the existing warning labels on beer, wine, and spirits bottles would require legislation passed by the U.S. Congress. Currently, U.S. regulations only require warnings about the dangers of drinking and driving and drinking during pregnancy, as well as a general warning that alcohol "may cause health problems."

It remains unclear whether the Department of Health's proposal will gain bipartisan support in Congress. Congress has not passed significant legislation targeting the alcohol industry since 1988, when a law was enacted requiring health warnings on all alcohol containers. In 1986, a proposal was made to label cancer risks on alcoholic beverage labels, but it was ultimately abandoned due to industry lobbying.

Following the news, major alcoholic beverage manufacturers saw their stock prices drop, with Molson-Coors falling by more than 4.6% at most, and Anheuser-Busch dropping by about 2.7%.

According to the announcement, between 2019 and 2020, 72% of American adults reported drinking at least once a week, but less than half of adults were aware of the link between alcohol consumption and cancer risk According to data from the Ministry of Health, there were 741,300 cases of cancer attributed to alcohol consumption globally in 2020. On average, alcohol-related cancer deaths shorten the lifespan of the deceased by 15 years.

However, an increasing number of young Americans have gradually reduced their alcohol consumption, with many turning to non-alcoholic alternatives. According to a Gallup survey released in August, about two-thirds of adults aged 18 to 34 reported that drinking has a negative impact on health, while the proportion for those aged 35 to 54 and 55 and older is less than 40%. Non-alcoholic beer and spirits are becoming increasingly popular, and the younger generation is more inclined to use cannabis. Alcohol companies report that the reduction in alcohol consumption among Americans is affecting their revenue sources