BRC (BRCC) 5 Nov 24 2024 Q3 Earnings call transcript
AInvestWednesday, Nov 6, 2024 12:44 pm ET
1min read
KDP --

Black Rifle Coffee Company, a veteran-founded organization, held its Third Quarter 2024 Earnings Call to discuss its financial results and strategic initiatives. The company, which has 50% of its employees or their family members connected to the military, expressed gratitude to veterans on the occasion of Veterans Day.

Strong Financial Performance and Strategic Investments

Black Rifle Coffee Company reported significant improvements in its operational excellence, including an 18-point sequential increase in ACV at grocery stores and a more than 8-point improvement in gross margin year-over-year. The company's adjusted EBITDA grew by 15% compared to the third quarter of the previous year. This strong performance is attributed to strategic investments in supply chain management, forecasting capabilities, and business management.

Expansion into the Energy Drink Market

A notable development in the earnings call was the announcement of Black Rifle Energy, a new energy drink line, and a distribution partnership with Keurig Dr. Pepper (KDP). This partnership, which aligns with KDP's commitment to supporting veteran causes, will provide Black Rifle Coffee Company with access to a vast network, reaching over 180,000 retail outlets nationwide. This strategic move into the energy drink market, which generates over $20 billion in retail sales, aims to broaden the company's audience and expand consumption occasions.

The Guerrilla Warfare Mindset

Black Rifle Coffee Company's Founder and Executive Chairman, Evan Hafer, emphasized the company's guerrilla warfare mindset, reflecting its origins from special operations veterans. This approach, characterized by small, agile teams, quick adaptation to market changes, and resourcefulness, has been instrumental in driving the company's success despite its smaller size and limited resources compared to larger competitors.

Looking Ahead: Innovation and Partnerships

Black Rifle Coffee Company is committed to innovating its product offerings, including the introduction of energy products, and expanding into new categories. The company's strategic approach includes leveraging partnerships with well-capitalized operators to magnify its impact, as seen in its energy drink partnership with Keurig Dr. Pepper. This balance of internal resource development and strategic partnerships positions Black Rifle Coffee Company for long-term growth and value creation.

Conclusion

Black Rifle Coffee Company's Third Quarter 2024 Earnings Call revealed a company on a solid foundation, with operational improvements and strategic investments driving growth. The expansion into the energy drink market and the strategic partnership with Keurig Dr. Pepper signify a bold move to broaden the company's reach and capture new opportunities. With a strong team, a loyal customer base, and a mission-driven business model, Black Rifle Coffee Company is well-positioned for continued success.

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