Keurig Dr Pepper (KDP) risk factors, FY2024 10-K

RISKS RELATED TO OUR OPERATIONS

1. 01Disruption of our manufacturing and distribution operations or supply chain, including increased commodity, raw material, packaging, energy, transportation, and other input costs may adversely affect our financial condition or results of operations
2. 02We operate in intensely competitive categories, and our potential inability to compete effectively could adversely impact our business
3. 03We may not effectively respond to changing consumer preferences and shopping behavior, which could impact our financial results
4. 04Concerns about the safety, quality, or health effects of our products could negatively affect our business
5. 05Damage to our reputation or brand image can adversely affect our business
6. 06If we do not successfully manage our acquisitions of and investments in new businesses or brands, our operating results may adversely be affected
7. 07Failure to realize benefits or successfully manage the potential negative consequences of our productivity initiatives can adversely affect our financial performance
8. 08Our facilities and operations may require substantial investment and upgrading, including investments in new technologies and digital transformation, and such investments may not achieve the intended financial benefits
9. 09We depend on key information systems, and our use of information technology exposes us to business disruptions that could adversely affect us
10. 10Substantial disruption at our manufacturing and distribution facilities could occur
11. 11Our intellectual property rights could be infringed or we could infringe the intellectual property rights of others, and adverse events regarding licensed intellectual property could harm our business
12. 12Failure to attract, retain, develop and motivate a highly skilled and diverse workforce, or failure to effectively manage changes in our workforce such as labor shortages, employee turnover and increases in wages, could significantly impact our operations
13. 13We may not be able to renew collective bargaining agreements on satisfactory terms, or we could experience union activity, including new unionization, labor disputes or work stoppages
14. 14Increases in our cost of employee benefits in the future could reduce our profitability

RISKS RELATED TO OUR FINANCIAL PERFORMANCE

1. 15We negotiate with our suppliers to optimize our terms and conditions, including payment terms, and reductions in our payment terms with our suppliers could adversely affect our liquidity
2. 16We cannot guarantee that our share repurchase program will be fully consummated or that our share repurchase program will enhance long-term stockholder value
3. 17Determinations in the future that a significant impairment of the value of our goodwill and other indefinite-lived intangible assets has occurred could have a material adverse effect on our financial statements

RISKS RELATING TO OUR RELATIONSHIPS WITH THIRD PARTIES

1. 18We depend on third-party bottling and distribution companies for a significant portion of our business
2. 19Changes in the retail landscape or in sales to any key customer can adversely affect our business
3. 20Failure to maintain strategic relationships with brand owners and private label brands could adversely impact our future growth and business, potentially resulting in the termination of those agreements
4. 21Equity method investments are managed independently of us and may have different interests than we do. Their decisions could impact our financial performance
5. 22The use of information technology by our third party commercial partners and service providers exposes us to business disruptions or other negative impacts that could adversely affect us
6. 23We rely on the performance of a limited number of suppliers and manufacturers for our brewers, and a limited number of order fulfillment companies for our brewers, beverage concentrates and syrups
7. 24Our financial results may be negatively impacted by recession, financial and credit market disruptions and other political, social or economic conditions
8. 25U.S. and international laws and regulations could adversely affect our business
9. 26Litigation or legal proceedings could expose us to significant liabilities and damage our reputation
10. 27Increased concerns related to the use or disposal of plastics or other packaging materials can adversely affect our business and financial performance
11. 28Significant additional labeling or warning requirements or limitations on the marketing or sale of our products may inhibit sales of affected products
12. 29Our use of information technology and third-party service providers exposes us to cybersecurity breaches and other business disruptions that could adversely affect us
13. 30Failure to comply with personal data protection and privacy laws can adversely affect our business
14. 31Climate change or related legislation could adversely affect our business
15. 32Water scarcity and quality could adversely affect our business
16. 33Fluctuations in our effective tax rate may result in volatility in our financial results