Black Rifle Coffee Company finally went public via SPAC merger, with the company opening up on the NYSE with a bang.
Sept. 20, 2022
Black Rifle Coffee Company is a mission-driven company that serves coffee to active military members, veterans, and “those who love America”.
What does Black Rifle Coffee Company do?
Black Rifle Coffee Company (NYSE: BRCC) was founded in 2014 by U.S. army veterans. This influence can be seen throughout every level of the business, with the firm committed to hiring 10,000 veterans as it continues to grow.
The company primarily operates digitally, offering customers the chance to purchase a coffee subscription service along with selling its wares through wholesale and a small number of self-owned retail outlets.
When can I buy Black Rifle Coffee Company stock?
Black Rifle Coffee Company started trading on the NYSE on February 10, 2022. It trades under the ticker symbol “BRCC.” The firm avoided the traditional IPO route, instead going public via SPAC. The coffee maker merged with blank-check company Silverbox Engaged Merger Corp (NASDAQ: SBEA) after agreeing to a deal in late 2021.
Black Rifle Coffee Company’s financials
The company grew revenue by 67% in 2020, reaching $164 million with gross margins of 42%. It currently makes the majority of its revenue online but has other avenues such as wholesale with its products sold in Walmart along with merchandise and a subscription business that has over 270,000 subscribers.
The company is expected to grow significantly over the next number of years, using a cash injection of $225 million for two key areas. Firstly, it will attempt to have opened 78 coffee stores by 2023 in a bid to fulfill its goal of hiring 10,000 army veterans. Secondly, it will focus on its ready-to-drink segment, which is already stocked in 40,000 stores. If it can execute and eat into the market share of established players, it provides an exciting opportunity.
Black Rifle Coffee Company has forecast for revenue of more than $320 million in 2022, and has tentatively mentioned hitting a mark of over $500 million in revenue for 2023 — that figure is very much subject to change, however, depending on results for the latter half of 2022.
Black Rifle Coffee Company’s growth potential
BRCC estimates that its total addressable market is approximately $45 billion, which leaves plenty of room for expansion. The U.S. has, by far, the largest coffee-consuming industry in the world, with revenues reaching north of $80 billion annually.
However, it’s a crowded market crowned by the likes of Starbucks and Dunkin’ Brands. Though that’s not to say that it can’t carve out a niche alongside other newcomers such as Dutch Bros.
It’s still very early days, so watch this space.