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 will start trading today on the NYSE. It will trade under the ticker symbol “BRCC.” The firm is foregoing the traditional IPO route, instead going public via SPAC. The coffee maker will merge with blank-check company Silverbox Engaged Merger Corp (NASDAQ: SBEA) after agreeing to a deal in late last year.
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 expected to grow by roughly 40% in 2021, using the 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.
We will be waiting expectantly in the coming weeks to see how it performed in 2021.
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 very early days, so watch this space.
Financial Writer at MyWallSt
Pádraig’s favorite stock is Nike. Growing up as a sports fanatic, seeing Nike collaborate with athletes like Jordan, Lebron, and Ronaldo inspired him and cemented the brand in his mind. Now, despite having failed miserably in his attempts to earn a fabled Nike sponsorship, he still believes in the innovation and creativity behind Nike and is convinced they will only grow stronger as the world's leading sports brand.