Factors Influencing Industry Growth Trends In an effort to determine future growth in sales, profits, etc., many factors can be examined. However, since brevity is important, we have decided to use the following: 1.) Social Attitudes 2.) Legislation 3.) Distribution 4.) Competition: 1) Social Attitudes Currently the business environment for distillers and winemakers is heavily influenced by Social attitudes toward drinking and government policies reflect these attitudes. The objectives of government policy are to reduce alcoholism and limit the consumption of alcohol by minors. A company like Brown-Forman seeks to compete forcefully in the marketplace and protect the right of adult consumers to purchase these products. In the United States and other international markets Brown-Forman works with other distillers and winemakers to achieve a more favorable policy and political consensus. social environment for selling your products. Brown-Forman is a member of the Distilled Vintner's Council and the Wine Institute. Both of these organizations attempt to achieve fair treatment for the company and its consumers. Brown-Forman also seeks to ensure favorable regulatory treatment in foreign markets, including open access to foreign markets for spirits and wines produced in the United States. 2.) Legislation The alcoholic beverage industry is highly sensitive to increases in tax rates. In the United States, Brown-Forman's largest market, there is no imminent legislation to increase excise taxes, although a future increase cannot be ruled out! Likewise, although there has been discussion (and legislation introduced) to ban alcohol advertising in the United States, nothing has come of it. However, most television networks currently refuse to accept alcohol advertising. Outside the United States, the alcoholic beverage market is also affected by tax rates and advertising restrictions, but the impact of such policies in each market is not significant to the Company's overall business and advertising. 3). Distribution Brown-Forman does not currently own all major distribution companies. It therefore relies on its competitors to distribute its products in different markets. For example, United Distillers and Vintners distributes "Jack Daniel's" and "Southern Comfort" in the United Kingdom, while Bacardb We distributes Brown-Forman's alcohol products in most of continental Europe. However, the current European economy is in a state of flux, with the recent creation of the European Union and the subsequent elimination of trade barriers along with the adoption of the Single European Currency, which will be set in motion in the near future. These changes will significantly affect Brown-Forman's operations in Europe and revolutionize the distribution of spirits and wine in Europe, which is currently built on a country-by-country basis, encouraging cross-border sales.