The Alcohol Industry Faces Headwinds

Few purveyors of alcohol will be toasting the new year. Just three days into 2025, the US surgeon-general was advocating labels to warn drinkers of the link to cancer. This time next year, Ireland will be health-labelling its drinks. The sector has little to be merry about in any case. Abstinence is in vogue, at least in swaths of the developed world.

The ranks of US adults aged 18-34 who have “ever” drunk an alcoholic beverage has fallen from 72 percent to 62 percent over the past two decades, according to Gallup polling. As if lower sales are not headache enough, tariffs mooted by US president-elect Donald Trump stand to erode earnings. This starts to smack of structural decline. So far, the weak Chinese consumer — quaffing a tenth of Pernod’s net sales — and a natural slide from the Covid-inspired boost, had all the hallmarks of a cyclical downturn. Share prices and valuations duly crumpled. UK-listed Diageo, with shares off by a tenth last year, looks relatively unscathed beside France’s Pernod Ricard, nearly 30 percent, and cognac maker Rémy Cointreau’s 40 percent. Reflecting a deeper fall, expect analysts to scratch earnings estimates lower — if companies don’t beat them to the punch and do so at upcoming quarterly results. Introducing tougher regulations can do serious damage to earnings. Big Tobacco turned to vapes as part of its efforts to offset clampdowns on conventional cigarettes, but regulators followed suit and vapes went up in smoke. Marlboro maker Altria wrote off virtually its entire $12.8bn investment in Juul before exiting. Still, the beauty of beer goggles is the ability to see the glass half full. Drinking follows classic rules: most is done by the minority. In developed markets about 60 to 90 percent of alcohol is consumed by the top 20 percent of drinkers, according to Bernstein. These hardened souls are far less likely to be deterred by warnings. Big tobacco also offers a handy playboo

United States United States Latest News, United States United States Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Mexico's Tequila Industry Faces Glut Amid Slowing Demand and Tariff ThreatsMexico's booming tequila industry is grappling with a surplus of inventory, attributed to declining demand and increased production capacity. The situation is further complicated by the threat of US tariffs under Donald Trump's administration.
Source: ftenergy - 🏆 47. / 63 Read more »

English Wine Industry Faces Challenges Amidst Search for BuyersThe English wine industry is grappling with a downturn as prominent estates like Chapel Down, Gusbourne, and Rathfinny seek buyers or partners. A combination of factors, including a poor 2024 harvest, a challenging UK Budget, and the need for significant capital investment, has dampened investor enthusiasm. Estate founders are reaching a point where they need to either commit to further investment, sell, or pass on the business to the next generation.
Source: FT - 🏆 113. / 51 Read more »

German Solar Panel Industry Faces Distress After Demand SlumpA surge in demand for solar panels in Germany following Russia's invasion of Ukraine led to rapid expansion in the industry. However, demand has since collapsed, resulting in bankruptcies, layoffs, and a glut of panels on the market. This downturn raises concerns about Germany's ability to meet its ambitious climate targets.
Source: ftenergy - 🏆 47. / 63 Read more »

German Solar Industry Faces Headwinds in 2024The German solar industry is experiencing a slowdown in growth in 2024, driven by rising financing costs and a decline in residential solar demand. Several German solar companies have filed for insolvency, and others have been forced to lay off employees.
Source: OilandEnergy - 🏆 34. / 68 Read more »

Scotland's Shipbuilding Industry Faces Uncertain Future Amidst Financial Struggles and Rising Global ThreatsScotland's once-thriving shipbuilding industry, exemplified by the historic River Clyde, is facing a challenging period. The news highlights the financial difficulties of Ferguson Marine and Harland and Wolff, with job losses and concerns about future orders. The Royal Navy's shipbuilding capacity is also under scrutiny due to a lack of new ship orders in 2024, raising questions about the UK's defense capabilities in an increasingly volatile world.
Source: Daily_Record - 🏆 9. / 89 Read more »