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In a recent advisory, US Surgeon General Dr. Vivek Murthy declared that alcohol use contributes to cancer risk.

Aligning with this advisory, Dr. Murthy is also requiring cautionary messages on beer, wine, and spirit packaging, as used on cigarette packs.

According to Yahoo Finance, the news caused Alcohol giants' stocks to plummet, especially the likes of Pernod Ricard and Molson Coors. Experts believe this is a sign of possible more and lengthier challenges for the sector in question. Not to mention that about 100,000 cancer cases and 20,000 cancer deaths in the country are linked to alcohol each year, targeting the breast, liver, and colon.

The move joins a list of countries such as South Korea and Ireland, that have already established the requirement of labeling alcoholic drinks with cancer-related information. The warning labels would alert the public to health risks due to alcohol consumption.

Alcohol Cancer Warning's Impact to the Industry

There is a lack of clarity as to how long the advisory will remain in effect with the presidential administration's changeover before its inauguration.

Analysts do believe that the real impact may be delayed since some regulatory changes could be challenged or reversed. But the advisory could, if it resulted in mandatory warning labels, be a lasting blow to the alcohol market. Although there is evidence that alcohol consumption is declining among younger generations, analysts are being cautious not to predict a huge market shift.

This is in addition to other battling challenges by the alcohol sector, which include overall US consumption declines and looming price increases due to Trump's Tariff, Just Drinks reported.

Premium-priced alcoholic beverages, including beer, wine, and spirits, also face reduced demand in terms of consumer spending that is weakened. The factors mentioned above, coupled with the Surgeon General's warning, make it an even tougher environment for alcohol companies, especially with steady escalation of competition from non-alcoholic beverages.

While some experts predict that the impact on alcohol sales may not be as severe as the decline in cigarette consumption, others are watching closely for further developments.