Brc Inc. · NYSE:BRCC
Brc — 27th Annual ICR Conference 2025
40 slides from Brc's conference presentation, Jan 14, 2025
Slide 1: 2025 Investor Presentation - ICR
ENERGY Black Rifle Coffee Company LIFESTYLE 2025 Investor Presentation - ICR COMMUNITY January 14, 2025
Slide 2: Introductions
INTRODUCTIONS Chris Steve Matt Mondzelewski Kadenacy McGinley President and Chief Chief Financial VP of Investor Executive Officer Officer Relations Joined in May 2023 as President and Served as CFO since Sep. 2023 Served as VP of Investor Relations CMO and has served as CEO and since Sep. 2024 Co-F
Slide 3: 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, as to the
Slide 4: Disclaimer: Non-GAAP Financial Measures
DISCLAIMER 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, Adjusted EBITDA, and Adjusted Gross Margin. These non-GAAP financial m
Slide 5: Highlights of Today's Discussion
HIGHLIGHTS OF TODAY’S DISCUSSION We Are a Mission Driven Lifestyle Brand with a Loyal Customer Base Long-Term Opportunity For Growth in Large and Attractive Beverage Categories Strategic Partnerships Amplify Our Brand Impact Coffee Distribution Gains in FDM Channels and Energy Launch are Multi-Year
Slide 6: Who We Are
WHO WE ARE BRCC is proudly committed to our mission of supporting those who serve, standing for more than high-quality coffee OUR FOUR PILLARS OF BRAND IDENTITY Authenticity Premium Community Veteran Founded Matters Positioned Focused We carry the culture of those Our brand represents and is We offe
Slide 7: What Sets Us Apart
WHAT SETS US APART Mission-Driven Lifestyle Brand with a Deeply Loyal Customer Base Scaled Player in Large Categories That Provide Opportunities for Long-Term Growth Large Market Opportunity in Energy and Beyond Facilitated by KDP Partnership Experienced Management Team Dedicated to the Mission Disc
Slide 8: A Growing, Enthusiast-Driven Brand
A GROWING, ENTHUSIAST-DRIVEN BRAND Differentiated brand in early stages of multi-decade growth trajectory ~$392.5mm ~37% ~40-42% ~10% 78 ~190k+ 2024P 2019A-2024P 2024P Adj. 2024P Adj. Net Promoter DTC Coffee Club Revenue Revenue CAGR Gross Margin EBITDA Margin Score Subscribers COMPLETE ASSORTMENT O
Slide 9: Supported by Powerful Thematic Tailwinds
SUPPORTED BY POWERFUL THEMATIC TAILWINDS BRCC’s product portfolio intersects with key trends that are top of mind for consumers PREMIUM QUALITY AUTHENTIC, MISSION- FUNCTIONALITY CONVENIENCE PRODUCTS DRIVEN BRANDS Consumers prioritize Seeking innovative drinks Gravitating towards clean authenticity a
Slide 10: Unconventional Warfare: How We Operate
UNCONVENTIONAL WARFARE: HOW WE OPERATE BRCC has taken a creative approach to building a leading lifestyle brand – embodying patriotism, tradition, freedom and actively championing those who serve OUR FOUNDING MINDSET HOW WE OPERATE Black Rifle was founded by Special Small-team operations Use of Forc
Slide 11: Unconventional Warfare: The Black Rifle Brand
UNCONVENTIONAL WARFARE: THE BLACK RIFLE BRAND BRCC has taken a creative approach to building a leading lifestyle brand – embodying patriotism, tradition, freedom and actively championing those who serve OUR MISSION-DRIVEN APPROACH RESONATES DEEPLY WITH BLACK RIFLE LOYALISTS 6.0 Social Media Follower
Slide 12: Brand Building Partnerships and Innovation
BRAND BUILDING PARTNERSHIPS AND INNOVATION 1. CREATING BRAND 2. DISRUPTING RETAIL 3. HIGH IMPACT 4. SPLASHY PRODUCT FAME + BIGNESS WITH KEY PARTNERS EXPERIENTIAL INNOVATION Amplify our presence by collaborating Collaborate with core retail partners Create press-worthy activations and BRCC creates bo
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Slide 14: We're a Lifestyle Brand That Sells Culture
WE’RE A LIFESTYLE BRAND THAT SELLS CULTURE. AND SOME BEVERAGES! 13
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Slide 16: Black Rifle Social Media Channels
BLACK RIFLE SOCIAL MEDIA CHANNELS YouTube: https://www.youtube.com/@BlackRifleCoffeeComp any Instagram: https://www.instagram.com/blackriflecoffee/ X: https://x.com/blckriflecoffee Facebook: https://www.facebook.com/blackriflecoffeeco 15
Slide 17: Delivering Leading Growth in Wholesale Despite Lean Marketing Efforts
DELIVERING LEADING GROWTH IN WHOLESALE DESPITE LEAN MARKETING EFFORTS COMMENTARY • Historically, BRCC has underinvested in marketing compared to other players • Despite the declining spend on marketing from 2022A to 2024P, BRCC achieved significant revenue growth during that period • Marketing inves
Slide 18: Delivering Leading Growth in Wholesale Despite Lean Promotional Efforts
DELIVERING LEADING GROWTH IN WHOLESALE DESPITE LEAN PROMOTIONAL EFFORTS COMMENTARY • Promotion in packaged coffee has been substantially below peers, and in RTD coffee has been at or below peer averages • We expect to more effectively use promotion to drive trial and repeat purchases with volume gai
Slide 19: Our Sights Are Trained on the Most Attractive Beverage Segments
OUR SIGHTS ARE TRAINED ON THE MOST ATTRACTIVE SEGMENTS OF THE BEVERAGE MARKET… The beverage industry is large, dynamic and highly attractive with significant scope to grow share MASSIVE OPPORTUNITY IN ATTRACTIVE CATEGORIES DISTRIBUTION AND VELOCITY GROWTH DRIVING SHARE GAINS Total U.S. Beverage1 Top
Slide 20: Coffee & Ready-to-Drink (RTD) Product Portfolio
COFFEE & READY-TO-DRINK (RTD) PRODUCT PORTFOLIO COFFEE PORTFOLIO Sourcing high quality coffee beans from around the world to create roast profiles across the consumer taste spectrum Bagged and Single-Serve Exclusive Coffee Subscription • Specialty Grade1 coffees used • 85 or greater bean score1 acro
Slide 21: Started as DTC Business but Made Strategic Pivot
Wholesale + DTC Outpost Convenience STARTED AS DTC BUSINESS BUT MADE STRATEGIC PIVOT TO EXPAND GROWTH OPPORTUNITY SUCCESSFULLY INFILTRATED WHOLESALE CHANNEL… NET REVENUE BY SEGMENT ($MM) • After establishing the brand via a proven DTC presence, BRCC shifted its focus to its next battle: the Wholesal
Slide 22: Substantial Wholesale Business of Bagged Coffee & K-Cups
Wholesale + DTC Outpost Convenience Bags & Rounds WE HAVE QUICKLY BUILT A SUBSTANTIAL WHOLESALE BUSINESS OF BAGGED COFFEE & K-CUPS STRATEGIC SUMMARY PACKAGED COFFEE RETAIL SALES GROWTH (‘23-’24) • Across the Wholesale channel, our packaged coffee products are standout 151 451 347 1,763 1,809 598 488
Slide 23: Performance at Mass Merch Retailer
Wholesale + DTC Outpost Convenience PERFORMANCE AT MASS MERCH RETAILER We achieved $100mm+ of revenue at Retailer within ~18 months of launch BRCC LEADING COFFEE CATEGORY • Partnership launched in August 2022; now fully distributed in nearly all stores • Business generated $100mm+ in annual revenues
Slide 24: Performance at Regional Retailer
Wholesale + DTC Outpost Convenience PERFORMANCE AT REGIONAL RETAILER In the early innings of selling at Regional Retailer, we have established ourselves as a top coffee brand that warrants more shelf space BRCC HAS QUICKLY BUILT A STRONG & GROWING POSITION SHARE OF REGIONAL RETAILER COFFEE SALES2 •
Slide 25: RTD Share Gains and Distribution Build Continues
Wholesale + DTC Outpost Convenience RTD Coffee RTD SHARE GAINS AND DISTRIBUTION BUILD CONTINUES RTD coffee products are an important part of our flywheel, as continued distribution expansion will create additional brand awareness and drive consumer growth across our other channels RTD COFFEE STRATEG
Slide 26: Strategic Partnership with KDP
Wholesale + DTC Outpost Convenience Bags & Rounds RTD OUR STRATEGIC PARTNERSHIP WITH KDP IS A TESTAMENT TO OUR BRAND’S GROWING IMPACT We are entering the $20bn+1 energy market nationwide in partnership with Keurig Dr. Pepper ROUNDS PARTNERSHIP MANUFACTURING PARTNERSHIP DISTRIBUTION PARTNERSHIP • In
Slide 27: Unlocking RTD Energy's Potential
Wholesale + DTC Outpost Convenience RTD Energy UNLOCKING RTD ENERGY’S POTENTIAL RTD Energy partnership represents an important milestone that will improve upon the reach and quality of our distribution KDP / BRCC RTD ENERGY PARTNERSHIP BENEFITS FAVORABLE DEMOGRAPHICS & TREND-ALIGNED FORMULATION • Lo
Slide 28: Providing an Optimal BRCC Ecommerce Experience
Wholesale + DTC Outpost Convenience PROVIDING AN OPTIMAL BRCC ECOMMERCE EXPERIENCE DTC / E-commerce business serves as a strategic enabler for BRCC’s DTC / E-COMMERCE HIGHLIGHTS broad reaching omni-channel ecosystem STRATEGIC SUMMARY EXCLUSIVE COFFEE SUBSCRIPTION 190k+ $120mm+ Total DTC 2024P DTC Ne
Slide 29: BRCC's Additional Growth Levers
BRCC’S ADDITIONAL GROWTH LEVERS DEEP RESONANCE WITH CUSTOMERS PROVIDES PERMISSION TO EXPAND BRAND OPPORTUNITY SIZE Bring Brand to ~$50bn+ Adjacent Longer-Term Opportunities Extend into new beverage categories Still & Carbonated Categories WATER Bottled Water Outpost 1,300+ Expansion Leverage franchi
Slide 30: Key Strategic Priorities
KEY STRATEGIC PRIORITIES Energy Rollout Maintain Focus on Margins and Maximize KDP Efficient Capital Allocation Partnership Leverage Product Innovation Continued Penetration and Adjacent of FDM Category Expansion 29
Slide 31: Steve Kadenacy, Chief Financial Officer
Steve Kadenacy Chief Financial Officer 30
Slide 32: A Decade of Growth, Innovation, and Evolution as a Business
A DECADE OF GROWTH, INNOVATION, AND EVOLUTION AS A BUSINESS We responded to changing market landscape by investing outside of DTC channel and bagged coffee, and were quick to develop new products, distribution channels and strategic partners KEY ACHIEVEMENTS PERFORMANCE BY CHANNEL • Standing start t
Slide 33: Key Achievements Since Our Public Debut: Profitability
KEY ACHIEVEMENTS SINCE OUR PUBLIC DEBUT We remain committed to growth while focused on profitability Levers for Continued Profitable Growth Net Revenue Rapid expansion into Robust Growth ($ in mm) Wholesale channel and $390 $396 - 3951 RTD •1 Consistent Commitment to High $301 $233 Quality Product
Slide 34: Operational Transformation Providing High-Impact Results
OPERATIONAL TRANSFORMATION PROVIDING HIGH-IMPACT RESULTS FOR BRCC OPERATIONAL AREAS OF FOCUS Gross Margin Optimization SG&A Management Capital Allocation Strategy Mix Between Channels & Improved FCF; Recent Manufacturing Process Consolidated Headcount Products Debt Refi Reduced Interest Distribution
Slide 35: Manufacturing & Distribution Footprint
MANUFACTURING & DISTRIBUTION FOOTPRINT Streamlined supply chain leveraging a blend of company-owned production and strategic partnerships with co-manufacturers SUPPLY CHAIN OPTIMIZATION • Productivity improvements have improved margins and FDM Bag reduced working capital o 2024: ~$23mm in productivi
Slide 36: 3-Year Financial Targets
3-YEAR FINANCIAL TARGETS Revenues Gross Margin Adjusted EBITDA 10%-15% 40%+ 15%-25% Revenue CAGR Through 2027 Target Gross Margin EBITDA CAGR Through 2027 • Expect a lower rate of growth in • Expect gross margin in the high- • Expect EBITDA pressure in 2025 2025 (vs 3-yr CAGR) due to slotting 30% ra
Slide 37: Thank You!
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Slide 38: GAAP to Non-GAAP Financial Measures: Adjusted EBITDA
GAAP to Non-GAAP Financial Measures: Adjusted EBITDA (amounts in thousands) Year Ended December 31, (1) Represents the non-cash expense recognized to remeasure the earn-out liability to fair value upon 2023 2022 2021 vesting events. The change in fair value was a result of the increase of the closin
Slide 39: GAAP to Non-GAAP Financial Measures: Adjusted EBITDA (Quarterly)
GAAP to Non-GAAP Financial Measures: Adjusted EBITDA (amounts in thousands) Three Months Ended June 30, September 30, December 31, March 31, June 30, September 30, 2023 2023 2023 2024 2024 2024 GAAP Results: EBITDA $ (12,184) $ (5,092) $ (10,439) $ 6,368 $ 3,362 $ 3,767 Equity-based compensation (1)
Slide 40: GAAP to Non-GAAP Financial Measures: Gross Margin
GAAP to Non-GAAP Financial Measures: Gross Margin (in thousands, except % data) Three Months Ended, December 31, March 31, June 30, September 30, December 31, March 31, June 30, September 30, 2022 2023 2023 2023 2023 2024 2024 2024 GAAP Results: Revenue, Net $93,618 $83,490 $91,947 $100,536 $119,650