Brown Forman (BF-B) risk factors, FY2025 10-K

Risks Related to Our Business and Operations

1. 01Our business performance depends substantially on the continued health of the Jack Daniel family of brands
2. 02Changes to our route-to-consumer models and consolidation among beverage alcohol producers, distributors, wholesalers, suppliers, and retailers could hinder the marketing, sale, or distribution of our products
3. 03We are subject to risks from changes to the trade policies, tariffs, and import and export regulations of the U.S. and foreign governments
4. 04Changes in consumer preferences and purchases, any decline in the social acceptability of our products, or governmental adoption of policies disadvantageous to beverage alcohol could negatively affect our business results
5. 05core brands, is a significant element of our growth strategy; however, there can be no assurance that we will continue to develop and implement successful line extensions, packaging, formulation or flavor changes, or new products
6. 06Production facility disruption could adversely affect our business
7. 07The inherent uncertainty in supply/demand forecasting could adversely affect our business, particularly with respect to our aged products
8. 08Higher costs or unavailability of water, raw materials, product ingredients, or labor could adversely affect our financial results
9. 09Higher costs or insufficient availability of suitable grain, agave, water, molasses, oak barrels, glass, closures, and other input materials, or higher associated labor costs or insufficient availability of labor, could adversely affect our financial results
10. 10Unfavorable economic conditions could negatively affect our operations and results
11. 11We might not succeed in our strategies for investments, acquisitions, dispositions, and other strategic transactions
12. 12Negative publicity could affect our business performance
13. 13Our business faces various risks related to health epidemics and pandemics that could materially and adversely affect our business, our operations, our cash flows, and our financial results
14. 14Product recalls or other product liability claims could materially and adversely affect our sales
15. 15Our failure to attract or retain key talent could adversely affect our business

Risks Related to Our Global Operations

1. 16Our global business is subject to commercial, political, and financial risks
2. 17A failure to comply with anti-corruption laws, trade sanctions and restrictions, or similar laws or regulations may have a material adverse effect on our business and financial results
3. 18Fluctuations in foreign currency exchange rates relative to the U.S. dollar could have a material adverse effect on our financial results

Legal and Regulatory Risks

1. 19National and local governments may adopt regulations or undertake investigations that could limit our business activities or increase our costs
2. 20Tax increases and changes in tax rules could adversely affect our financial results
3. 21Our ability to market and sell our products depends heavily on societal attitudes toward drinking and governmental policies that both flow from and affect those attitudes
4. 22Significant additional labeling, warning requirements, or limitations on the availability of our products could inhibit sales of affected products
5. 23Counterfeiting or inadequate protection of our intellectual property rights could adversely affect our business prospects
6. 24Litigation and legal disputes could expose our business to financial and reputational risk

Risks Related to Our Ownership and Corporate Governance Structure

1. 25The Brown family has the ability to control the outcome of matters submitted for stockholder approval