The Utah-based pro-military coffee chain says supply disruption in the period was largely offset by the successful expansion of its ready-to-drink range
BRCC has set an ambitious revenue target of $500m for 2023 | Photo credit: Black Rifle Coffee Company
Black Rifle Coffee Company (BRCC) has credited its ready-to-drink coffee range as fueling 26% year-on-year revenue growth.
However, production site equipment failure and supply chain disruptions in the company’s third quarter were cited as negatively impacting profit margins.
The company, which supports veterans, US military and first responders, achieved third quarter sales of $75.5m, bringing year-to-date net revenue to $207.7m.
BRCC said wholesale revenue increased 66% in the period to $32.2m as a result of an enhanced RTD offering and a market entry into the Food, Drug & Mass (FDM) channel. FDM covers retail channels specialising in food, beverages, medicine and general household products.
“As we evolve our business model and demonstrate progress on our path to profitability, we are optimistic that our entry into the FDM channel will contribute significant incremental growth, revenue and brand awareness,” said Evan Hafer, CEO, BRCC.
Meanwhile, direct-to-consumer trade grew 2% to $38.1m, following price increases to BRCC’s pro-gun themed packaged coffee products.
The company’s outpost channel, covering trade from its stores, increased 65% to $5.2m. BRCC has expanded to 11 outlets, having only operated four in the third quarter of 2021.
BRCC’s gross profit fell $0.2m to $23.9m in the third quarter, while net loss was reported at $16.1m. The company’s net loss in the third quarter of 2021 was $4.1m.
“Overall, we were pleased with our performance in the third quarter, which was largely driven by our continued success in the RTD market and entry into the FDM channel in collaboration with Walmart. In the quarter, our RTD line continued to be the fastest growing single serve RTD coffee across all channels of trade, outpacing the RTD Coffee Category growth by 4.5x,” added Hafer.
BRCC expects fourth quarter sales to exceed $90m and has set an ambitious revenue target of $500m for 2023.
In February 2022, BRCC joined the US stock exchange in an IPO valuing the company at around $1.7bn. The coffee roaster and retailer said it would use the funds to reach its goal of hiring 10,000 veterans and expand its omni-channel coffee business.