Brc Inc. · NYSE:BRCC
Brc — 25th Annual ICR Conference 2023
20 slides from Brc's conference presentation, January 2023
Slide 1: ICR Conference 2023
ICR CONFERENCE 2023 January 2023
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: We Are America's Coffee: Our Mission
WE ARE AMERICA’S COFFEE 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: Who We Are
WHO WE ARE Evan Hafer Tom Davin Roland Smith Greg Iverson Chief Executive Co-Chief Executive Chief Financial Officer and Founder Executive Officer Chairman Officer Toby Johnson Heath Nielsen Chris Clark Marty Manning Chief Operating Chief Retail Chief Technology Chief Human Officer Officer Officer R
Slide 6: What We Do
WHAT WE DO MISSION-DRIVEN HIGH QUALITY DIGITALLY NATIVE LIFESTYLE BRAND COFFEE & PRODUCTS OMNI-CHANNEL Cause-related content Great coffee that Branded experiences that that INFORMS, consumers love, and high- deliver community, INSPIRES, ENTERTAINS quality merchandise quality, convenience, and value
Slide 7: Multiple Growth Vectors with Detailed Tactical Plans
MULTIPLE GROWTH VECTORS WITH DETAILED TACTICAL PLANS Wholesale Retail DTC 1 2 3 4 Expansion of RTD Growth and Experiential Retail Continue Growing Wholesale New Product (“Outposts”) Our DTC Business Distribution into Innovation Food, Drug & Mass (FDM) 66% 100K+ 40%+ 278K Subs of coffee for At-Home P
Slide 8: Efficient and Scalable Omni-Channel Model
EFFICIENT AND SCALABLE OMNI-CHANNEL MODEL Revenue ($ in millions) Revenue Mix 2% 54% CAGR $301 14% 2020 $233 $12 84% $56 $164 $3 $23 $82 $165 $8 $138 7% $74 Q3 2022 50% 43% 2019A 2020A 2021A 2022 Prelim¹ Outposts Wholesale DTC Source: BRCC Management. ¹ See Preliminary Estimates Disclosure on Page 2
Slide 9: Long-Term Goals
LONG-TERM GOALS Annual Revenue Growth ~30% Gross Margin ~45% EBITDA Margin ~20% Plan to deliver low-to-mid single digit Adjusted EBITDA in 2023 Black Rifle Coffee Company 8
Slide 10: Entry into FDM Channel with Bagged Coffee and Rounds
ENTRY INTO FDM CHANNEL 1 WITH BAGGED COFFEE AND ROUNDS $11B+ Out-of-Home market¹ 66% 4,400+ of Consumers only BRCC is currently being purchase their coffee at sold in over 4,400 Retail Walmart stores Nationwide 24 SKUs Top 5 BRCC initially launched BRCC is confident that with 24 SKUs² with room we w
Slide 11: Initial Walmart Rollout Is Gaining Momentum as Instocks Continue to Rise
INITIAL WALMART ROLLOUT IS GAINING 1 MOMENTUM AS INSTOCKS CONTINUE TO RISE BRCC Week-Over-Week Sales vs In stock % POS Sales Instock % 3250000 100 95 2750000 Christmas Week 90 2250000 85 80 1750000 75 1250000 70 65 750000 60 250000 55 Week 34 Week 35 Week 36 Week 37 Week 38 Week 39 Week 40 Week 41 W
Slide 12: In Less Than 4 Months We've Passed a Number of Established Brands
IN LESS THAN 4 MONTHS WE’VE PASSED A 1 NUMBER OF ESTABLISHED BRANDS L12W POS Units Sold Folgers Starbucks Maxwell Nescafe Dunkin' McCafe Green Donut Shop BRCC Community Peet's Deathwish House Mountain Coffee * Nielsen Data as of 12/3/2022, Includes Total Coffee Category (ground, whole bean, pods, et
Slide 13: Why We Are Excited About the FDM Wholesale Opportunity
WHY WE ARE EXCITED ABOUT THE 1 FDM WHOLESALE OPPORTUNITY 2022 YTD Wholesale Coffee Gross Margin & EBITDA Margin Accretive Category Sales¹ ($ in B) • Attractive Product Margins • Ability to Ship Truckloads of Product vs. Small Parcel Shipping $5.0 $6.4 Ability to Scale Rapidly in a Capital Efficient
Slide 14: Significant Opportunity in Ready-to-Drink Product
SIGNIFICANT OPPORTUNITY 2 IN READY-TO-DRINK PRODUCT $4B+ Addressable market1 Current RTD Product Portfolio and growing rapidly 0 to 70,000+ All 4 SKUs Doors in BRCC distribution in In the top 30 RTD SKUs ($/%ACV) 11 oz. less than ~2 years despite being introduced ~18 months ago offerings 38.3 ACV %
Slide 15: Consumer Trends Are Shifting and Driving Growth, Especially Within RTD
CONSUMER TRENDS ARE SHIFTING 2 AND DRIVING GROWTH, ESPECIALLY WITHIN RTD Total U.S. Retail Sales of Coffee & RTD Coffee by Segment RTD CAGR % 11.4% $9,343 68% Of consumers aged 18-34 years old Roasted Coffee 3.3% in the U.S. consume single serve RTD coffee – compared to 43% of the total U.S. Adults
Slide 16: Explosive Growth Within the RTD Category
EXPLOSIVE GROWTH WITHIN THE RTD 2 CATEGORY RTD Coffee + Energy Coffee Brands L26 Weeks – Total US $ Change ($M) vs Year Ago $ Sales ΔYA Starbucks $77.6 8.1% Black Rifle Coffee $25.7 73% Monster $18.9 5.9% International Delight $9.6 119% La Colombe $(1.9) (9.8)% Kitu Coffee $(2.4) (9.0)% Dunkin Donut
Slide 17: BRCC Continues to Take Market Share
BRCC CONTINUES TO TAKE MARKET SHARE 2 Unit Share Change (%) Last 52 Weeks Dollar per Distribution Point (‘000s) ($ / %ACV) 1.60% SKUs 135 33 4 19 0.90% $447 $164 $77 $57 -1.10% -1.20% Black Rifle Monster Java Dunkin Donuts Starbucks Starbucks Monster Java Black Rifle Dunkin Donuts Coffee Coffee * Ni
Slide 18: Robust Innovation Pipeline for 2023
ROBUST INNOVATION PIPELINE FOR 2023 2 2023 Permanent Innovation 2023 Summer || Fall || Cowboys 15oz Espresso 11oz Espresso 6.5oz Double 15oz Berry, White, 15oz Pumpkin 15oz Dallas Vanilla BOMB Salted Caramel Tap and Blue Spice Cowboys SPRING 2023 SUMMER FALL FALL Black Rifle Coffee Company 17
Slide 19: Path to Profitability in 2023
PATH TO PROFITABILITY IN 2023 • FDM channel introduction is a major catalyst for growth and EBITDA margin expansion Channel Expansion • RTD rapidly scaling in c-store and mass with more than 70,000 doors currently, targeting 100,000 by end of 2023 + • Consumers have not exhibited any tendencies to t
Slide 20: 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