Zhitong Finance APP noticed that after the USA director of health announced last week the advocacy for warning labels on alcoholic products, investors in the Alcoholic Beverages Industry have a new factor to consider.

TD Cowen Analyst Robert Moscato wrote that although it is still too early to determine whether the incoming Trump administration and Congress will prioritize alcoholic beverage warnings, the company believes this is another reason to think that per capita alcohol consumption in the USA will stagnate in the medium to short term. Looking ahead, Moscato and his team believe investors need to remain cautious about the Industry.

Moscato pointed out that in the worst-case scenario for the Alcoholic Beverages Industry, the Trump administration might include the surgeon general's alcohol warning as part of the "Make America Healthy Again" initiative, and Congress might update ABLA to enforce stricter language, placing warning labels more prominently on alcoholic packaging.

He warned that "spreading awareness of the new guidelines and alcohol risk factors may further affect young consumers, who are increasingly leaning towards cannabis or sobriety instead of alcohol." It was emphasized that an experiment in Canada showed that adding warning labels to Alcoholic Beverages increased awareness of the relationship between alcohol and cancer risks by 10% just two months later.

In response to the developments, TD Cowen expects the Alcoholic Beverages Industry to actively lobby against the director of health's recommendations and provide their viewpoints to the USA Department of Agriculture and the Department of Health and Human Services during the assessment of the new guidelines.

A series of Alcoholic Beverages related Stocks include: Diageo (DEO.US), Anheuser-Busch InBev (BUD.US), Molson Coors (TAP.US), Boston Beer (SAM.US) and other companies.