What does Surgeon General’s call for cancer label on alcohol mean for Kentucky bourbon?
Share prices on major Kentucky bourbon makers dipped early Friday after the U.S. Surgeon General called for cancer risk warning labels on alcohol.
Dr. Vivek Murthy released a report outlining the link between alcohol consumption and increased cancer risk. It’s the third leading preventable cause of cancer in the U.S., contributing to about 20,000 cancer deaths and about 100,000 cases of cancer annually.
Murthy called on Congress to authorize an update to the Surgeon General’s warning label on alcohol-containing beverages to include the cancer-risk warning.
Bourbon is a $9 billion industry in Kentucky, employing more than 23,100 people. Kentucky’s whiskey makers have been on a building boom in recent years, with record growth for two years in a row.
Cancers linked to alcohol
The report said that consuming alcohol increases the risk of developing at least seven types of cancer: Mouth, throat, larynx, esophagus, breast (in women), liver and colorectum cancer.
It’s part of a long argument over how much alcohol is safe or even beneficial.
Five years ago, a study that shaped the latest dietary guidelines suggested capping the recommendation at one drink a day but the guidance has remained at up to two drinks a day for men, one or less for women.
The link between alcohol and breast cancer has been known for decades but other studies have found moderate drinking linked to fewer heart attacks and deaths overall.
But in December 2022, the World Health Organization stated that no level of alcohol consumption is safe for health.
Impact on bourbon
The U.S. Distilled Spirits Council of the U.S. issued a statement on Friday saying, in part, “We do not recommend that anyone drink to achieve health benefits and urge all adults who choose consume alcohol to consult their health provider to determine what is best for them and to follow the recommendations of the 2020-2025 Dietary Guidelines, which states, ‘Adults of legal drinking age can choose not to drink, or to drink in moderation by limiting intake to 2 drinks or less in a day for men and 1 drink or less in a day for women, when alcohol is consumed. Drinking less is better for health than drinking more.’”
Meanwhile, stock prices on Louisville-based Brown-Forman, maker of Jack Daniel’s, Woodford Reserve and other spirits, slid immediately after Murthy’s early morning statements on X, the social media platform formerly known as Twitter. At the closing bell Brown-Forman was down about 2.5%.
Elizabeth Conway, director of external communications for Brown-Forman, said in an email: “Regarding the Surgeon General’s call for cancer warnings on alcohol, Brown-Forman is currently referring all questions on this matter to DISCUS (the Distilled Spirits Council of the U.S.) for an industry perspective.”
Pernod Ricard, which owns Rabbit Hole Distillery, and is spending $250 million to build Jefferson’s Bourbon a Kentucky distillery, sank 3%, while Molson Coors, which bought Blue Run Spirits in 2023, also dropped more than 3%. Constellation, which owns Copper & Kings American Brandy distillery in Louisville, was down 1%.
Overseas, shares of Campari-Davide, maker of Wild Turkey, also slipped more than 5%; Suntory Beverages, which owns Jim Beam and Maker’s Mark, was down less than 1%.
Global spirits giant Diageo, which makes Bulleit Bourbon, was down almost 4%.
Privately held Heaven Hill Distilleries, which makes Evan Williams, Elijah Craig and other major brands, referred questions to the Kentucky Distillers’ Association.
The Kentucky Distillers’ Association did not immediately respond to Herald-Leader requests for comment.
This story was originally published January 3, 2025 at 12:48 PM.
