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Risks
1. Regulatory Risk: The regulatory environment for many of Brown-Forman’s products is constantly changing, and new restrictions can have an adverse effect on sales and profits.
2. Economic Risk: Unstable economic conditions can have an effect on consumer demand for Brown-Forman’s products, resulting in decreased sales and market share.
3. Supply Chain Risk: Brown-Forman has a complex global supply chain, and any disruption along that chain could have a significant effect on the production and availability of their products.
4. Social and Environmental Risk: Concerns about the social and environmental impacts of alcohol consumption can lead to public health initiatives that could reduce demand for Brown-Forman’s products.
5. Competition Risk: Brown-Forman faces stiff competition from other producers of spirits, wines and beers, with new competitors entering the market on a regular basis.