A股方面，不少白酒股日内也不幸“躺枪”：① After the head of the USA health department called for cancer warnings on alcoholic beverages last Friday, the Stocks of Asian liquor manufacturers fell on Monday. ② Jefferies Financial Analyst Edward Mundy wrote that the market is adopting a "shoot first and ask questions later" strategy to address potential health warnings and cancer risk labels on alcoholic beverages in the USA.
According to a report from the Financial Association on January 6 (editor Xiaoxiang), after the head of the USA health department called for cancer warnings on alcoholic beverages last Friday, the Stocks of Asian Baijiu and Beer manufacturers fell on Monday.
In the Japanese market, alcoholic beverage manufacturers.$Sapporo Holdings (2501.JP)$On Monday, it once plunged 5% during intraday trading, marking the largest drop in five months.
In the A-share market, many Baijiu stocks also unfortunately "took fire" during the day:$Kweichow Moutai (600519.SH)$Falling over 2%.$Wuliangye Yibin (000858.SZ)$A decline of over 3%.
In the Hong Kong stock market,$BUD APAC (01876.HK)$the decline also exceeded 2%, with "the first stocks of Hong Kong Baijiu"$ZJLD (06979.HK)$the decline further reached 6%.
The beverage stocks in the Australian market also experienced a decline storm on Monday, with wine manufacturers $Treasury Wine Estates Ltd (TWE.AU)$ It dropped 2.39% during the day.
Analyst Edward Mundy from Jefferies Financial wrote in a report, "The market is adopting a 'shoot first, ask questions later' strategy to deal with the potential health warnings and cancer risk labels that may be put on Alcoholic Beverages in the USA. This could have adverse effects on an already struggling Industry."
Previously, European and American alcohol stocks had already experienced a significant drop last Friday, as USA Health Secretary Vivek Murthy stated that Alcoholic Beverages should carry cancer warnings in order to raise awareness of alcohol as a major preventable cause of cancer.
In an announcement, Murthy stated that alcohol is a recognized preventable cancer factor, causing approximately 100,000 cancer cases and 20,000 cancer deaths each year in the USA. However, most Americans are unaware of this risk.
Murthy also mentioned that the link between drinking and cancer risk has been confirmed in at least seven types of cancer, including breast cancer, colorectal cancer, esophageal cancer, liver cancer, oral cancer, throat cancer, and laryngeal cancer.
Currently in the USA, drinking is the third largest preventable cancer factor, after smoking and obesity. However, bottles of Beer, wine, and Spirit are currently only required to label warnings against drinking and driving and drinking during pregnancy, as well as a general warning that alcohol 'may cause health issues.'
To change the existing warning labels, action would need to be taken by the U.S. Congress, but the above-mentioned warning statement from the USA Health Secretary has evidently made many investors uneasy.
Amir Anvarzadeh, an Analyst from Asymmetric Advisors, stated, "Many people now believe that Alcoholic Beverages warning labels and brand marketing regulations will become stricter and follow the path of the Tobacco Industry from 30 years ago. However, the decline of Alcoholic Beverages stocks may be temporary since any regulatory changes in the USA would take years to become effective."
Anvarzadeh also pointed out that in the Japan market, Sapporo may be the most vulnerable stock because the company has performed strongly in recent years due to its asset optimization measures, accumulating significant profits. Since the end of 2020, the company's stock price has nearly quadrupled.
Editor/Rocky
