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Diageo hit by call for alcohol drink labels to include cancer warnings

ALN

Shares in Diageo PLC fell on Friday after the US Surgeon General called for alcoholic beverage labels to include cancer warnings.

Shares in the owner of Guinness and Johnnie Walker whisky slid 3.1% to 2,469.50 pence each in London on Friday afternoon. It was the worst performing stock on the FTSE 100 which was down 0.1%.

In Europe, spirits and wine company Campari NV was 3.6% lower at €5.88 in Milan. Pernod Ricard SA, the world’s second-largest wine and spirits seller, was down 3.0% at €105.40 in Paris.

The advisory from the Office of the US Surgeon General described the scientific evidence for the link between alcohol consumption and increased risk for at least seven different types of cancer.

These include breast (in women), colorectum, esophagus, voice box, liver, mouth, and throat.

‘Advisories are reserved for significant public health challenges that require the nation’s immediate awareness and action’, the release stated.

The advisory said about 5 out of 100 women and 3 out of 100 men would develop cancer due to consumption of two drinks a day.

‘Alcohol consumption is the third leading preventable cause of cancer in the United States, after tobacco and obesity,’ the advisory noted.

The advisory said actions to begin reducing alcohol-related cancers could include updating the existing health warning label on alcoholic drinks to include a warning about the risk of cancer associated with alcohol consumption.

Making label characteristics more visible, prominent, and effective in increasing awareness

about cancer risks associated with alcohol consumption could also be considered.

‘Health warning labels are well-established and effective approaches to increasing awareness of health hazards and fostering behaviour change. Considerable evidence supports the use of health warning labels, including promising evidence toward their role in raising awareness about alcohol-related risks.’

The advisory suggested recommended limits for alcohol consumption could be reassessed to account for the latest evidence on alcohol consumption and cancer risk.

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