After a series of challenges in 2024, Belgium's beverage giant AB InBev (NYSE:BUD), the maker of Budweiser and Corona, dipped deeper to 27.54% below its one-year high following the Surgeon General's advice to alcoholic beverages to carry warning labels on cancer risks.

This advisory highlight that alcohol consumption is the third leading preventable cause of cancer in the U.S., after tobacco and obesity and therefore should carry a warning label on the bottle.

• Warning! GuruFocus has detected 4 Warning Signs with BUD.

The Surgeon General is the nation's top public health official, responsible for providing Americans with the best scientific information available on how to improve their health and reduce the risk of illness and injury.

Following the announcement, stock prices for other several alcohol companies declined, such as Boston Beer Company (NYSE:SAM) (maker of Angry Orchard, Truly Hard Seltzer, Samuel Adams): Down by 3.83%, Molson Coors (NYSE:TAP) (maker of Miller Lite and Coors Light): Down by 3.3%, Jack Daniel's (NYSE:BF.B) (owned by Brown-Forman): Down by 2.5%, Diageo (DGEAF) (owner of Johnnie Walker, Captain Morgan, Smirnoff): Down by 3.7%.

According to IWSR Drinks Market Analysis, in recent years the global beverage alcohol market volume growth is slowing down, not as fast as in early 2000s, forecasted to grow at a modest +1% CAGR (Compound Annual Growth Rate) from 2022-2027. The reasons are varied from increases public health awareness to global economic challenges.

However, consumption patterns vary significantly across regions and the demand for alcoholic beverage cannot be gone completely at all times.

You can make more informed investment decision by visiting GuruFocus now and deep dive into AB InBev's performance with charts, breakdowns, 30-year financial data, and more!