What the changes say
- New risks emphasize asset-sale execution, social-media and ESG reputation, and credit-rating pressure on borrowing access.
- Consumer-demand risk now specifically includes dietary changes, weight-loss regimens, and GLP-1 drugs.
- Global disruption language adds Iran-related threats, Middle East conflicts, Ukraine, and Russia sanctions.
- Brown Forman now relies on an external oak-barrel supplier for American whiskey aging.
What changed since the prior 10-K
New
- NewRisks Related to Our Business and Operations
involve significant costs, management distraction, disruption to our business relationships, employee uncertainty, and litigation risk
Selling assets or businesses could produce unfavorable terms, delayed transactions, unrealized savings, operational disruption, management distraction, and litigation.
- NewRisks Related to Our Business and Operations
Negative publicity or our inability or failure to recognize, respond to, and effectively manage the increased impact of social media could affect our business performance
Negative publicity, social-media effects, or evolving ESG expectations could damage reputation, stock price, talent retention, brands, and business performance.
- NewRisks Related to Our Global Operations
A downgrade or potential downgrade of our credit ratings could adversely impact our borrowing costs and access to credit and capital markets, which could negatively affect our financial condition
A credit-rating downgrade or November 2025 review could raise borrowing costs, restrict commercial-paper and capital-market access, and reduce liquidity.
Dropped
- DroppedRisks Related to Our Business and Operations
core 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
- DroppedRisks Related to Our Business and Operations
Higher 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
- DroppedRisks Related to Our Business and Operations
Negative publicity could affect our business performance
Reworded
- 74% rewrittenRisks Related to Our Business and Operations
We might not succeed in our strategies for investments, acquisitions, dispositions, and other strategic transactions
The risk now focuses on failing to identify counterparties or complete strategic transactions on acceptable terms, omitting prior integration and unknown-liability details.
- 70% rewrittenRisks Related to Our Business and Operations
Higher costs or unavailability of water, raw materials, product ingredients, or labor could adversely affect our financial results
The discussion replaces the closed barrel-making operation with reliance on an external supplier for oak barrels used to age American whiskey.
- 47% rewrittenLegal and Regulatory Risks
Tax increases and changes in tax rules could adversely affect our financial results
The tax risk removes the January 2025 political reference and adds that enacted proposals could increase the effective tax rate and reduce earnings.
- 35% rewrittenRisks Related to Our Business and Operations
We are subject to risks from changes to the trade policies, tariffs, and import and export regulations of the United States and foreign governments
No substantive change; the risk continues to cover tariffs, trade restrictions, sanctions, quotas, and customs changes.
Was: We are subject to risks from changes to the trade policies, tariffs, and import and export regulations of the U.S. and foreign governments
- 24% rewrittenRisks Related to Our Global Operations
Our global business is subject to commercial, political, and financial risks
The global-risk discussion specifically adds the Iran conflict, Iranian-sponsored actors, other Middle East conflicts, Ukraine, and resulting Russia sanctions.
- 23% rewrittenRisks Related to Our Ownership and Corporate Governance Structure
The Brown family has the ability to control the outcome of matters submitted for stockholder approval
No substantive change; the Brown family’s controlled-company status and NYSE governance exemptions remain described the same way.
- 20% rewrittenRisks Related to Our Business and Operations
Changes 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
Consumer-demand risk now adds dietary changes, weight-loss regimens, and GLP-1 drugs as potential drivers of shifting alcohol preferences.
All 25 risk factors
Headings as the filing states them, in filing order.
Risks Related to Our Business and Operations
- 01Our business performance depends substantially on the continued health of the Jack Daniel’s family of brands
- 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
- 03We are subject to risks from changes to the trade policies, tariffs, and import and export regulations of the United States and foreign governments35% rewritten
- 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 results20% rewritten
- 05Production facility disruption could adversely affect our business
- 06The inherent uncertainty in supply/demand forecasting could adversely affect our business, particularly with respect to our aged products
- 07Higher costs or unavailability of water, raw materials, product ingredients, or labor could adversely affect our financial results70% rewritten
- 08Unfavorable economic conditions could negatively affect our operations and results
- 09We might not succeed in our strategies for investments, acquisitions, dispositions, and other strategic transactions74% rewritten
- 10involve significant costs, management distraction, disruption to our business relationships, employee uncertainty, and litigation riskNew
- 11Negative publicity or our inability or failure to recognize, respond to, and effectively manage the increased impact of social media could affect our business performanceNew
- 12Product recalls or other product liability claims could materially and adversely affect our sales
- 13Our failure to attract or retain key talent could adversely affect our business
- 14Our 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
Risks Related to Our Global Operations
- 15Our global business is subject to commercial, political, and financial risks24% rewritten
- 16A 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
- 17Fluctuations in foreign currency exchange rates relative to the U.S. dollar could have a material adverse effect on our financial results
- 18A downgrade or potential downgrade of our credit ratings could adversely impact our borrowing costs and access to credit and capital markets, which could negatively affect our financial conditionNew
Legal and Regulatory Risks
- 19National and local governments may adopt regulations or undertake investigations that could limit our business activities or increase our costs
- 20Tax increases and changes in tax rules could adversely affect our financial results47% rewritten
- 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
- 22Significant additional labeling, warning requirements, or limitations on the availability of our products could inhibit sales of affected products
- 23Counterfeiting or inadequate protection of our intellectual property rights could adversely affect our business prospects
- 24Litigation and legal disputes could expose our business to financial and reputational risk
Risks Related to Our Ownership and Corporate Governance Structure
- 25The Brown family has the ability to control the outcome of matters submitted for stockholder approval23% rewritten
Other Brown Forman 10-Ks
- FY2025 10-K risk factors25 risks
Revenue heavily relies on the Jack Daniel family of brands and single-location distillation facilities.
Filed Jun 13, 2025
About this page
The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.