Shares of major alcohol producers and distributors declined sharply Friday following a warning issued by U.S. Surgeon General Vivek Murthy about the increased cancer risks associated with alcohol consumption.

What To Know: Murthy’s advisory emphasized the need for updated health warning labels to reflect mounting evidence of alcohol’s connection to cancer. These labels have not been revised since 1988. The advisory also called for reassessing recommended alcohol consumption limits, highlighting alcohol's role as the third-leading preventable cause of cancer in the United States, behind tobacco and obesity.

Murthy’s statement drew attention to alcohol’s association with at least seven types of cancer, including breast, liver and colorectal cancers. He pointed out that alcohol consumption contributes to approximately 100,000 cancer cases and 20,000 deaths annually in the United States. The announcement highlighted that only 45% of American adults are aware of the cancer risks posed by alcohol.

Stocks of leading alcohol companies reacted negatively to the news.

Molson Coors Beverage Co. ( TAP/A ) saw its shares drop by 3.72%, while Boston Beer Co. ( SAM ) shares fell 4.26%. Anheuser-Busch InBev Inc. ’s stock declined by 1.84% and Constellation Brands Inc. ( STZ ) saw a 1.5% decrease. Diageo Inc.‘s stock also traded lower, falling 3.15%. Brown-Forman , the maker of Jack Daniel’s whiskey, experienced a 2.58% decline.

The Surgeon General's advisory reignited discussions about public health measures and the potential for new regulations requiring updated warning labels on alcohol products.

Price Action: Molson Coors ( TAP/A ) shares were down 3.25% at $55.27, Boston Beer ( SAM ) shares were down 3% at $292.60 and Anheuser-Busch shares were down 1.85% at $49 at the time of writing, according to Benzinga Pro.

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