Brc Inc. · NYSE:BRCC
Brc — William Blair Growth Stock Conference 2022
22 slides from Brc's conference presentation, Jun 8, 2022
Slide 1: William Blair Growth Conference Presentation
WILLIAM BLAIR GROWTH COFFEE CONFERENCE CONTENT PRESENTATION June 8, 2022 COMMUNITY
Slide 2: Disclaimer
DISCLAIMER Disclaimer This investor presentation (this “Presentation”) is for informational purposes only. The information contained herein does not purport to be all-inclusive and none of BRC Inc. (“the Company”) or its respective affiliates makes any representation or warranty, express or implied,
Slide 3: Disclaimer (Cont'd)
DISCLAIMER (CONT’D) Non-GAAP Financial Measures This Presentation includes projections of certain financial measures not presented in accordance with generally accepted accounting principles (“GAAP”) including, but not limited to, EBITDA, EBITDA Margin, Adjusted EBITDA, Adjusted EBITDA Margin, Gross
Slide 4: Our Mission
WE ARE AMERICA’S COFFEE TM Our Mission Black Rifle Coffee Serves Premium Coffee and Content to Active Military, Veterans, First Responders, and Those Who Love America Black Rifle Coffee Company 3
Slide 5: Our Commitment to Veterans
OUR COMMITMENT TO VETERANS $3M+ $1.2M+ 10,000 of coffee was given to Veterans Black Rifle Coffee donated to military and first responder charitable organizations in 2021 long-term hiring goal selects local heroes units in 2021 annually and donates $5K to a charity of their choice Black Rifle Coffee
Slide 6: Efficient and Scalable Omni-Channel Model
EFFICIENT AND SCALABLE OMNI-CHANNEL MODEL Revenue ($ in millions) Revenue Mix 2% 57% CAGR $315 14% 2020 $233 $12 84% $56 $164 $3 $23 $82 $8 $165 8% $138 $74 33% Q1 2022 59% 2019A 2020A 2021A 2022E Outposts Wholesale DTC Source: BRCC Management. Wholesale includes RTD and wholesale coffee and merchan
Slide 7: What We Do
WHAT WE DO MISSION-DRIVEN HIGH QUALITY DIGITALLY NATIVE LIFESTYLE BRAND COFFEE & PRODUCTS OMNI-CHANNEL Devoted to cause- Great coffee that Omni-channel related content that consumers love, and business model with INFORMS, INSPIRES, high-quality branded experiences ENTERTAINS, and merchandise that th
Slide 8: Who We Are
WHO WE ARE Evan Hafer Tom Davin Greg Iverson Toby Johnson Heath Nielsen Chris Clark Chief Executive Co-Chief Chief Financial Chief Operating Chief Retail Chief Technology Officer and Founder Executive Officer Officer Officer Officer Officer Black Rifle Coffee Company 7
Slide 9: Why Invest in BRCC
WHY INVEST IN BRCC BRCC Key Metrics Mission-Driven Lifestyle Brand with 78 Loyal Customer Base Net Promoter Score1 3.7B+ Massive Market Opportunity in Coffee Social Media Impressions in 20212 and Beyond ~45% Veteran Employees Attractive Omnichannel Model with or Veteran Spouses Multiple Venues
Slide 10: Large and Loyal Social Media Following
LARGE AND LOYAL SOCIAL MEDIA FOLLOWING (1) 3.7B+ 8 11.1M Social Media Impressions(2) 7 7.9M 6 3.1M 5 2.9M 4 1.8M 3 1.7M 2 0.6M 1 0.4M Facebook Instagram Twitter TikTok YouTube Note: Social Media Followers by Brand as of 2021. 1. Includes Mat Best, Evan Hafer and Heather Lynn followers. 2. As of 2021
Slide 11: Massive Market Opportunity
MASSIVE MARKET OPPORTUNITY BRCC Serviceable Addressable Market1 $14B $28B+ $45B+ U.S. Coffee Market $28B+ Black Rifle Coffee Company $4B Serviceable Addressable Market $10B $0.3B 2022E Revenue At-Home RTD Out-of-Home S.A.M. Source: BRCC Management, Stax Market Study. Black Rifle Coffee Company 10 1.
Slide 12: Proven Ability to Reach a Broad, Diverse Audience
PROVEN ABILITY TO REACH A BROAD, DIVERSE AUDIENCE ...FROM COAST TO COAST Black Rifle Coffee Company’s Rank Market …And Reflects Highly (2020 DTC Customer Base Reaches All Sales) 1 (MSA) Attractive Demographics Geographies…1 1 New York – Newark – Jersey City 2 Dallas – Ft. Worth – Arlington 3 Los Ang
Slide 13: Brand Awareness Presents Significant Growth Opportunity
BRAND AWARENESS PRESENTS SIGNIFICANT Awareness Building GROWTH OPPORTUNITY Targeted By Audience West Northeast ~11% Midwest ~3% 64M 42M 18M 7M 131M ~16% California South ~5% ~12% Texas ~16% 11M 10M 2M 2M 26M Military/ 2nd Mission Law Total = 0% – 10% = 10% – 12% Veteran Amendment Aligned Enforcement
Slide 14: Powerful Omni-Channel Strategy Drives Growth
POWERFUL OMNI-CHANNEL STRATEGY DRIVES GROWTH DTC Outposts Revenue Mix 2% 14% 2020 84% Wholesale Wholesale RTD Coffee/Merchandise 8% 33% Q1 2022 59% DTC Wholesale Outposts Black BlackRifle RifleCoffee CoffeeCompany Company 13
Slide 15: Growth Strategy
GROWTH STRATEGY Black Rifle Coffee Company 14
Slide 16: Multiple Growth Vectors with Detailed Tactical Plans
MULTIPLE GROWTH VECTORS WITH DETAILED TACTICAL PLANS 1 2 3 4 Continue Growing Experiential Retail RTD and New Expansion of Our DTC Business (“Outposts”) Product Innovation Wholesale West Distribution Midwest Northeast ~11% ~16% ~3% 45%+ 100K+ ~5K Cash-on-Cash Returns Points of Distribution Potential
Slide 17: Leading Coffee Subscription Model with High Retention
LEADING COFFEE SUBSCRIPTION 1 MODEL WITH HIGH RETENTION Monthly Churn Rates1 ~10% ~3%-4% ~2% Industry 290k+ Average2 active coffee club subscribers BRCC’s subscription service provides a recurring revenue stream with strong customer retention relative to other subscription businesses >4x attractive
Slide 18: Outposts Are Redefining the Brand Experience
OUTPOSTS ARE REDEFINING THE BRAND EXPERIENCE 2 Outpost Highlights Creating a Fulsome Digital Experience $12 to $13 ~48% / ~52% • Integrated Loyalty and gift card programs across retail and digital channels Average check Merchandise (including • Fully integrated Retail Experience bagged coffee) / Bev
Slide 19: Significant Opportunity in Ready-to-Drink Product
SIGNIFICANT OPPORTUNITY 3 IN READY-TO-DRINK PRODUCT $4B+ Current RTD Product Portfolio Addressable market1 0 to 47,000+ All 4 SKUs Doors in BRCC distribution In the top 25 RTD SKUs 11 oz. in less than 2 years ($/%ACV) offerings <25% Penetration Top 4 Brand in C-stores2 in coffee / energy coffee cate
Slide 20: Wholesale Coffee and Merch Products Expanding Nationwide
WHOLESALE COFFEE AND 4 MERCH PRODUCTS Existing Outdoor, DIY & Lifestyle EXPANDING NATIONWIDE Chains Partnership Examples 3x+ ~7,200+ 2,600+ Rapidly expanding reach in retail through unique coffee products and merchandise1 Doors at end of 2021 Potential doors with existing customers Black Rifle Coffe
Slide 21: BRCC's Omni-Channel Flywheel in Action: San Antonio
BRCC’S OMNI-CHANNEL FLYWHEEL IN ACTION: SAN ANTONIO At Home On-the-Go San Antonio Market: 2023E Direct-to-Consumer C-store & Mass Example C-Store / Wholesale Partners Highest Likelihood BRCC Customers BRCC Outpost target location San Antonio Market Significant overlap Revenue Outlook ($M) of Outpost
Slide 22: Black Rifle Coffee Company: America's Coffee
BLACK RIFLE COFFEE COMPANY: AMERICA’S COFFEETM LOYAL AND GROWING PROVEN OMNI-CHANNEL COMMUNITY FLYWHEEL • Mission-driven, lifestyle brand • Digitally native • In-house content driving massive • Leading coffee subscription program social following • Premier specialty retail partners • Broad geographi