Black Rifle’s wholesale channel led second quarter sales growth as ready-to-drink (RTD) retail distribution and store revenues rise
CEO Evan Hafer (pictured) said the BRCC brand is resonating across the US | Photo credit: Black Rifle Coffee Company
Black Rifle Coffee Company (BRCC) CEO Evan Hafer has said the brand ‘never been stronger’ following robust second quarter sales.
The veteran-owned coffee chain achieved 39% year-on-year total sales growth in the three months ended 30 June 2023 to reach $92m.
Sales were primarily driven by BRCC’s wholesale channel, which posted 109% growth to reach $50m. The segment benefited from increased production of ready-to-drink (RTD) products and wider retail distribution.
BRCC, which actively promotes support for veterans, law enforcement and first responders, opened one new store during the quarter to reach 17. The coffee chain’s outlets achieved 35% year-on-year sales growth to $7.4m.
With its wholesale channel maintaining a strong performance across the first half of 2023, Utah-based BRCC said it will continue to redirect investments from its direct-to-consumer channel to ‘faster growing areas of the business’. With marketing spend for the channel also reduced, BRCC’s direct-to-consumer sales fell 6% to $34.6m.
However, higher group level sales volumes lifted gross profit 42% year-on-year to $32.2m. BRCC’s net loss stands at $14.7m, compared to $45m in the same quarter of 2022.
“The Black Rifle Coffee Company brand has never been stronger. Our brand is resonating across the country, in cities and small towns alike, and we are gaining distribution and doors to meet our customers where they shop every day. Additionally, our aided brand awareness has jumped by almost 10 percentage points, to 28% since 2022. We still have a long way to go, but we continue to remain focused on building a lasting brand that will be around for generations,” said Evan Hafer, CEO of BRCC.
BRCC’s second quarter results come amid a minor management reshuffle which saw Chief Marketing Officer Chris Mondzelewski assume the role of President in June 2023, where he will oversee both marketing and day-to-day operations.
Additionally, experienced financial executive Mark Weinsten will start serving as Interim Chief Financial Officer this month, replacing outgoing CFO Greg Iverson who steps down after three and a half years in the role.