The US veteran-owned coffee chain has credited a strong performing wholesale channel for leading its shift into a ‘mainstream CPG business’
Utah-based Black Rifle Coffee Company's wholesale sales increased 114% to $119m | Photo credit: Black Rifle Coffee Company
Black Rifle Coffee Company (BRCC) has hailed its transition from a small direct-to-consumer brand to a mainstream consumer packaged goods (CPG) business following robust 2022 revenues.
The coffee chain, which actively promotes support for veterans, law enforcement, and first responders, achieved 29% revenue growth in the 12 months ended 31 December 2022 to reach $301.3m, nearly a third of which was generated in BRCC’s fourth quarter ($94m).
BRCC’s profit increased 11% to $99m although the company reported an annual net loss of $338m.
Utah-based BRCC said wholesale sales increased 114% to $119m, driven by its ready-to-drink (RTD) products and market entry into the Food, Drug & Mass (FDM) segment, which covers retail channels specialising in food, beverages, medicine and general household products.
BRCC’s direct-to-consumer sales fell 4% to $159m while revenues from the coffee chain’s outlets grew 90% to $23m. The company opened 10 new stores in 2022 to reach 26, 11 of which are operated by franchisees.
“The momentum of the Black Rifle Coffee brand has been incredible throughout 2022. We've moved from a small, niche DTC brand to a mainstream CPG business in less than a couple of years. We've entered the Food, Drug and Mass (FDM) market and in less than six months have become the number four bagged coffee brand at Walmart and currently represent 3.8% of their total coffee aisle. Outside of FDM, our RTD coffee products have been the fastest-growing RTD coffee brand outpacing the category by almost four times,” said Evan Hafer, CEO, BRCC.
Hafer added that the business has implemented new productivity initiatives to help generate ‘meaningful profitability’ in 2023.
BRCC expects revenues of up to $440m in 2023 alongside adjusted EBITDA of between $5m-$20m.