Shares of Asian liquor and beer makers declined after the US Surgeon General outlined a direct link between alcohol consumption and heightened cancer risk, and called for warning labels.
“The market will adopt a ‘shoot first ask questions next’ approach to the risk of potential health warning labels on alcoholic drinks and cancer risk in the US,” Edward Mundy, an analyst at Jefferies Financial Group Inc., wrote in a note. “This could act as an overhang on a sector that is already trading on a depressed multiple.”