Alcoholic drinks should carry a warning about cancer risks on their label, the U.S. Surgeon General said on Friday in a move that could signal a shift towards more aggressive tobacco-style regulation for the sector.
U.S. Surgeon General Vivek Murthy said alcohol consumption increases the risk of at least seven types of cancer, including breast, colon and liver cancer, but most U.S. consumers remain unaware of this.
Murthy also called for the guidelines on alcohol consumption limits to be reassessed so that people can weigh the cancer risk when deciding whether or how much to drink. U.S. dietary guidelines currently recommend two or fewer drinks per day for men and one drink or less per day for women.
"Alcohol consumption is the third leading preventable cause of cancer in the United States, after tobacco and obesity," Murthy's office said in a statement accompanying the new report, adding the type of alcohol consumed does not matter.
His advisory sent shares in alcohol companies including Diageo (DGE.L), Pernod Ricard (PERP.PA), Anheuser-Busch InBev (ABI.BR) and Heineken (HEIN.AS) down, in some cases over 3%.
Alcohol producers and industry associations, did not immediately share comments.
It is unclear when or if the Surgeon General's suggestions will be adopted. U.S. President Joe Biden's administration is entering its final two weeks. Murthy could be succeeded by Janette Nesheiwat, a director of a New York chain of urgent care clinics and president-elect Donald Trump's pick for the role.
Trump, whose brother died from alcoholism and who does not drink himself, has long warned about the risks of drinking. Robert F. Kennedy Jr., Trump's nominee for Secretary of Health and Human Services, has been open about his past struggles with heroin and alcohol, and says that he attends Alcoholics Anonymous meetings.
The decision to update the label will ultimately be made by Congress.
SMALL PRINT
Murthy's advisory harks back to early U.S. Surgeon General action on tobacco, starting with a 1964 report that concluded smoking could cause cancer. The report kicked off decades of increasingly strict regulations, starting with U.S. laws on warning labels one year later and still ongoing today.
Alcoholic drinks in the U.S. already carry warnings on their packaging, including that drinking alcohol while pregnant can cause birth defects and that it can impair judgment when operating machinery. These appear in small print on the back of the packaging. This label has not changed since its inception in 1988.
Murthy's recommendations call for an update to these existing labels, rather than new cigarette-style warnings that are today displayed prominently on the front of every packet.
Analysts however pointed out that cigarette warning labels did little to curb smoking and ingrained habits are hard to change.
"Warning labels won't be an immediate deathblow to alcohol makers, but it will compound the long-term threats to the industry," said Blake Droesch, analyst with eMarketer.
In the U.S., among the largest markets for many western producers, companies face growing competition from alternatives like cannabis and the threat of lower volumes as some consumers, especially younger ones, drink less than previous generations.
Beer makers especially have, however, enjoyed benefits from a shift towards healthier lifestyles, with low- or no-alcohol products enjoying rapid growth. Heineken's 0.0 version, for example, grew double digits in 16 markets last year.
The advisory said alcohol is responsible for 100,000 U.S. cancer cases and 20,000 cancer deaths each year, more than the 13,500 alcohol-associated traffic crash deaths.
The new report recommends healthcare providers should encourage alcohol screening and treatment referrals as needed, and efforts to increase general awareness should be expanded.
