Over the past few years, the alcohol industry in the U.S. has suffered major blows to its sales after experiencing increased demand during the Covid pandemic in 2020.
In 2023, beer sales in the U.S. declined to the lowest in over two decades. This can be partially attributed to the massive boycott Bud Light faced from conservative consumers that year for “going woke” after it featured Dylan Mulvaney, a transgender social media influencer, in a social media campaign that promoted a $15,000 giveaway.
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Beer sales continued to shrink in 2024, while wine and spirit sales also declined last year as consumers battled higher alcohol prices.
Related: Bud Light rival avoids boycott by cutting ‘woke’ policies
Many U.S. consumers have also recently become more health-conscious, developing more of a cautious attitude towards alcohol consumption.
According to a recent survey from Gallup, 45% of Americans say that drinking one or two alcoholic beverages a day is harmful to one’s health. This is a six-percentage-point increase compared to survey results from last year and a 17-point increase compared to responses in 2018.
US surgeon general issues stern warning about alcohol
As the alcohol industry battles weaker consumer demand, it now has a new problem on its hands.
The U.S. Surgeon General Dr. Vivek Murthy just released a new advisory that outlines a direct link between alcohol consumption and increased cancer risk.
A bartender pours a Cosmopolitan.
Image source: Shutterstock
He states in his advisory that alcohol consumption is the “third-leading preventable cause of cancer in the United States, after tobacco and obesity, increasing the risk for at least seven types of cancer.”
He lists the esophagus, breast, liver, mouth, throat, larynx, colon, and rectum as parts of the human body that are at risk for developing cancer from alcohol consumption.
Four ways alcohol can cause cancer
Dr. Murthy states that alcohol can cause cancer in four ways. First, by damaging DNA in the body, which can cause cells to “grow uncontrollably,” potentially creating a cancerous tumor.
Second, he notes that alcohol can generate oxygen species, “which increase inflammation and can damage DNA, proteins, and lipids in the body through a process called oxidation.”
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Third, alcohol can alter hormone levels, which can play a role in causing breast cancer. Fourth, he states that carcinogens from other sources “can dissolve into alcohol, making it easier for them to be absorbed into the body, increasing the risk for mouth and throat cancers.”
The advisory highlights that the risk of cancer increases as the level of alcohol consumption increases.
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“For certain cancers, like breast, mouth, and throat cancers, evidence shows that this risk may start to increase around one or fewer drinks per day,” reads the advisory.
“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 United States – greater than the 13,500 alcohol-associated traffic crash fatalities per year in the U.S. – yet the majority of Americans are unaware of this risk,” said Dr. Murthy in a Jan. 3 press release.
Shortly after Dr. Murthy’s advisory was released, several alcohol companies saw their stock prices dip today.
Anheuser-Busch (BUDFF) , for example, saw its stock fall by about 2%. Diageo’s (DEO) shrunk by about 3.5%, Constellation Brands’ (STZ) stock fell by roughly 1%, and Molson Coors’ (TAP.A) stock declined by almost 3%.
Related: Veteran fund manager issues dire S&P 500 warning for 2025
