Marzetti (MZTI) risk factors, FY2025 10-K

RISKS RELATED TO HEALTH AND FOOD SAFETY

1. 01We may be subject to business disruptions, product recalls or other claims for real or perceived safety issues regarding our food products
2. 02We may be subject to a loss of sales or increased costs due to adverse publicity or consumer concern regarding the safety, quality or healthfulness of food products, whether with our products, competing products or other related food products

RISKS RELATED TO OUR OPERATIONS

1. 03Increases in the costs, or limitations in the availability, of raw materials, packaging and freight used to produce, package and deliver our products due to inflation, geopolitical events or otherwise could adversely affect our business by increasing our costs to produce goods
2. 04A disruption of production at certain manufacturing facilities could result in an inability to meet customer demand for certain of our products, which could also negatively impact our ability to maintain adequate levels of product placement with our customers on a long-term basis
3. 05Labor shortages, increased labor costs, and increased labor turnover could adversely impact our business, results of operations, financial condition and cash flows
4. 06The availability and cost of warehousing and transportation for our products is vital to our success, and the loss of availability or increase in the cost of warehouse capacity and transportation could have an unfavorable impact on our business, results of operations, financial condition and cash flows
5. 07Our operations are dependent on a wide array of third parties
6. 08Increases in energy-related costs could negatively affect our business by increasing our costs to produce goods
7. 09Our inability to successfully renegotiate collective bargaining contracts and any prolonged work stoppages could have an adverse effect on our business, results of operations, financial condition and cash flows
8. 10The loss of the services of one or more members of our senior management team could have a material adverse effect on our business, results of operations, financial condition and cash flows
9. 11Manufacturing capacity constraints may have a material adverse effect on our business, results of operations, financial condition and cash flows
10. 12We may require significant capital expenditures to maintain, improve or replace aging infrastructure and facilities, which could adversely affect our cash flows
11. 13We may not be able to successfully consummate proposed acquisitions or divestitures, and integrating acquired businesses may present financial, managerial and operational challenges
12. 14Climate change, including drought, and increasingly stringent legal and market measures to address climate change may present challenges to our business and adversely affect our business, reputation, operations and supply chain

RISKS RELATED TO THE BRANDS WE SELL AND CUSTOMER DEMAND FOR OUR PRODUCTS

1. 15We rely on the value of our reputation and the value of the brands we sell, and the failure to maintain and enhance these brands, including as a result of negative publicity (whether or not warranted), could adversely affect our business
2. 16We manufacture and sell numerous products pursuant to license agreements and failure to maintain or renew these agreements could adversely affect our business
3. 17Competitive conditions within our Retail and Foodservice markets could impact our sales volumes and operating profits
4. 18Competitive considerations in the various product categories in which we sell are numerous and include price, product innovation, product quality, reputation, brand recognition and loyalty, effectiveness of marketing, promotional activity and the ability to remain relevant to consumer preferences and trends
5. 19Walmart is our largest Retail customer. The loss of, or a significant reduction in, Walmart’s business, or an adverse change in the financial condition of Walmart, could result in a material adverse effect on our business, results of operations, financial condition and cash flows
6. 20We rely on the performance of major retailers, mass merchants, wholesalers, food brokers, distributors and foodservice customers for the success of our business and, should they perform poorly or give higher priority to other brands or products, our business could be adversely affected

RISKS RELATED TO CYBERSECURITY AND INFORMATION TECHNOLOGY

1. 21Cyber attacks, data breaches or other breaches of our information security systems have had, and in the future could have, an adverse effect on our business strategy, results of operations, financial condition and cash flows
2. 22Technology failures could disrupt our operations and negatively impact our business
3. 23Failure to comply with current or future federal, state and foreign laws and regulations and industry standards relating to privacy and data protection could adversely affect our business and results of operations

RISKS RELATED TO REGULATORY AND LEGAL MATTERS

1. 24We are subject to federal, state and local government regulations that could adversely affect our business and results of operations

RISKS RELATED TO INVESTMENTS IN OUR COMMON STOCK

1. 25Mr. Gerlach, a member of our Board of Directors, has a significant ownership interest in our Company
2. 26Anti-takeover provisions could make it more difficult for a third party to acquire our Company