Molson Coors (TAP), and other alcohol stocks, have lost their fizz on news that the U.S. Surgeon General wants to place new labels on beer, wine, and spirit bottles warning of cancer risks.
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TAP stock is down 2% on the news. The stocks of other alcohol producers, such as Constellation Brands (STZ) and Boston Beer (SAM), are also down sharply. The declines come after U.S. Surgeon General Dr. Vivek Murthy called for a new warning label about the link between alcohol consumption and cancer risks.
Dr. Murthy said there is a well-established link between drinking alcohol and at least seven types of cancer that effect the breasts, colon, esophagus and liver. Dr. Murthy added that alcohol consumption is the third leading preventable cause of cancer in the U.S., behind tobacco and obesity.
Risky Behavior
As part of the advisory, the surgeon general called for policy changes that could help reduce alcohol-related cancer. He is pushing for alcohol labels to be more visible and include a warning about the increased risk of cancer; to reassess recommended limits for alcohol consumption; and expand education to increase awareness that alcohol consumption is unhealthy.
The U.S. Surgeon General’s Office noted that 72% of American adults say they have one or more drinks per week, but less than half are aware of the link between drinking and cancer. Worldwide, more than 700,000 cases of cancer are attributed to alcohol consumption each year, and alcohol-related cancer deaths shorten lives by an average of 15 years.
TAP stock has declined 7% over the past 12 months.
Is TAP Stock a Buy?
The stock of Molson Coors has a consensus Hold rating among 13 Wall Street analysts. That rating is based on three Buy, nine Hold, and one Sell recommendations issued in the past three months. The average price target on TAP stock of $61.54 implies 10.11% upside from current levels.
