Alcohol consumption can lead to significant social and health-related issues, including addiction, liver diseases, and increased incidents of violence and accidents. The societal impacts are vast, contributing to considerable healthcare costs and loss of productivity. Many investors choose to distance their portfolios from the alcohol industry due to these concerns.

The approaches taken by fund managers to exclude companies involved in the alcohol industry from their investment portfolios vary significantly. Some funds adopt a rigorous stance, completely avoiding investments in any companies that derive revenue from the production of alcoholic beverages, which includes not only manufacturers but also those significantly involved in the alcohol production chain. Others implement specific revenue thresholds, typically around 5% or 10%. This method allows for investments in companies that have minor alcohol-related revenue streams, aiming to strike a balance between ethical considerations and investment flexibility.