The US veteran-owned coffee chain reported a third successive quarter of strong wholesale revenues, with the channel becoming the leading contributor to BRCC’s sales growth for the first time
BRCC forecasts net revenues will increase by a third to at least $400m in full-year 2023. | Photo credit: Black Rifle Coffee Company
Black Rifle Coffee Company (BRCC) has cited its wholesale channel as the key contributor to its strong first quarter sales.
The coffee chain, which actively promotes support for veterans, law enforcement and first responders, achieved 27% year-on-year revenue growth to reach $83.5m and recorded gross profit growth of 19% to $27.5m.
Having increased 140% and 66% in its last two quarters, BRCC’s wholesale channel sales increased 82% in the three months ended 31 March 2023 to reach $40m. The coffee chain’s primary wholesale partner is US supermarket giant Walmart.
Revenue from the veteran-owned coffee chain’s 16 stores increased 21% to $6.7m, while direct-to-consumer sales fell 4% to $36.8m as BRCC redirected investments to 'faster growing areas of the business’.
“This was a transformational quarter in the evolution of Black Rifle Coffee Company. Less than four years ago, we generated 100% of our revenue from our direct-to-consumer channel. This is the first quarter in our company's history that the wholesale channel led the way,” said Evan Hafer, CEO, BRCC.
BRCC forecasts net revenues will increase by a third to at least $400m in full-year 2023. Total sales for 2022 reached $301.3m.