In This Article
A recent warning from the U.S. surgeon general about the risk of cancer posed by alcoholic beverages could give regulated cannabis businesses a boost in sales, according to an industry analyst.
U.S. Surgeon General Dr. Vivek Murthy issued the warning in a new advisory about alcohol and cancer risk on January 3. In it, he noted that alcohol consumption is the third leading preventable cause of cancer in the United States, after tobacco use and obesity. Murthy added that evidence about the link between alcohol and cancer has been growing over the past 40 years.
“Alcohol is a well-established, preventable cause of cancer responsible for about 100,000 cases of cancer and 20,000 cancer deaths annually in the United States – greater than the 13,500 alcohol-associated traffic crash fatalities per year in the U.S. – yet the majority of Americans are unaware of this risk,” the surgeon general said in a January 3 statement from HHS.
Murthy explained that there is a well-established link between alcohol consumption and at least seven types of cancer, including cancers of the breast, colorectum, esophagus, liver, mouth, throat (pharynx), and voice box (larynx). At least 16.4% of all breast cancers, for example, are directly attributable to alcohol consumption.
Murthy also recommended that the surgeon general’s warning on alcohol beverage containers be updated to reflect the strong evidence of a link between alcohol consumption and cancer. The current warning states that women who are pregnant should not consume alcohol because of the risk of birth defects. The required warning also states that the “consumption of alcoholic beverages impairs your ability to drive a car or operate machinery, and may cause health problems,” according to a report from CBS News.
“Given the conclusive evidence on the cancer risk from alcohol consumption and the Office of the Surgeon General’s responsibility to inform the American public of the best available scientific evidence, the Surgeon General recommends an update to the Surgeon General’s warning label for alcohol-containing beverages to include a cancer risk warning,” Murthy said in the advisory.
Warning Could Spur Increased Interest in the Cannabis Industry
Aaron Grey, an analyst at Alliance Global Partners, notes that a change in the warning label on alcohol would require an act from Congress. However, he believes that the surgeon general’s warning could help sustain a reduction in alcohol consumption and spur alcoholic beverage manufacturers to invest in the cannabis industry.
“We believe this could add to the lower alcohol use trend that we have seen in recent years, particularly among younger adults,” Grey said in a January 6 research note, according to a report from MarketWatch. “Through this lens, we anticipate alcohol companies will increasingly look for growth opportunities, with cannabis presenting one of the appealing options, in our view.”
According to government data compiled by Grey, weekly alcohol use hit its peak at 26% in 2012 and fell to 24% in 2022. Among adults 21 to 29, average monthly alcohol use peaked at 69.2% in 2018 and fell to 60.3% in 2022. The drop in alcohol consumption coincided with an increase in cannabis users, which rose from 4% of all adults in 2012 to 11% in 2022.
Grey noted that many investors have soured on the cannabis industry because of failures to pass meaningful reform legislation, including a bill to give businesses easier access to banking services. But a Biden administration bid to reschedule cannabis under federal drug laws coupled with President-elect Trump’s nomination of Robert F. Kennedy Jr., who is perceived as pro-cannabis, to lead the Department of Health and Human Services, could spark increased interest in the industry.
“While we acknowledge cannabis sentiment is at all-time lows (particularly from a public stock perspective) and a confluence of factors has limited near-term growth, the long-term thesis of cannabis becoming a mainstream consumer packaged goods product remains intact, in our view,” Grey said.
Learn about the risks of combining cannabis and alcohol. And sign up for NuggMD's Weekly Sesh newsletter for the latest cannabis news, consumer tips, and recommendations.
The information in this article and any included images or charts are for educational purposes only. This information is neither a substitute for, nor does it replace, professional legal advice or medical advice, diagnosis, or treatment. If you have any concerns or questions about laws, regulations, or your health, you should always consult with an attorney, physician or other licensed professional.
