Asian Liquor and Beer Stocks Tumble After US Surgeon General Links Alcohol to Cancer Risk

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Alcohol,Cancer,Warning Labels

Shares of Asian liquor and beer makers fell sharply after the US Surgeon General issued an advisory highlighting a direct link between alcohol consumption and heightened cancer risk, urging for warning labels on alcoholic beverages. Sapporo Holdings Ltd., Wuliangye Yibin Co., Budweiser Brewing Company APAC Ltd., and Treasury Wine Estates Ltd. all experienced significant stock declines. Analysts predict a potential 'shoot first ask questions next' market reaction to the risk of health warnings, which could impact the already depressed sector. While the decline may be short-lived due to the lengthy regulatory process, some companies like Sapporo Holdings Ltd. are seen as more vulnerable.

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.”

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