Anheuser-Busch InBev 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 and Constellation Brands 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."
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.
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