Brc Inc. · NYSE:BRCC
Brc — Black Rifle Coffee Company — SPAC Merger (December 2021)
57 slides from Brc's SPAC merger presentation, Dec 14, 2021
Slide 1: Coffee Content Community Investor Presentation
COFFEE CONTENT COMMUNITY INVESTOR PRESENTATION December 2021
Slide 2: Disclaimer
DISCLAIMER Disclaimer This investor presentation (this “Presentation”) is for informational purposes only to assist interested parties in making their own evaluation with respect to the proposed business combination (the “Business Combination”) among SilverBox Engaged Mer
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
Slide 4: Executive Summary
EXECUTIVE SUMMARY Black Rifle Coffee Company 3
Slide 5: The Team
THE TEAM Black Rifle Coffee Company 4 Black Rifle Coffee Company SilverBox Engaged Merger Corp I Tom Davin Co-Chief Executive Officer Greg Iverson Chief Financial Officer Joe Reece Executive Chairman Duncan Murdoch Chief Investment Officer Experienced CEO with 30+years of proven leadership experienc
Slide 6: We Are America's Coffee
WE ARE AMERICA’S COFFEETM Our Mission Black Rifle Coffee Serves Premium Coffee and Content to Active Military, Veterans, First Responders, and Those Who Love America ROASTED IN THE USA VETERAN CONTROLLED ~50% OF EMPLOYEES ARE VETERANS OR VETERAN SPOUSES 1 2 3 5 Black Rifle Coffee Company
Slide 7: Our Commitment to Veterans
OUR COMMITMENT TO VETERANS Black Rifle Coffee selects local heroes annually and donates $5K to a charity of their choice $3M+ of coffee will be donated to military and first responder units in 2021 $1.2M+ will be given to charitable organizations in 2021 10,000 Veterans long-term hiring goal Black R
Slide 8: Leading Sponsorship and Full Alignment
LEADING SPONSORSHIP AND FULL ALIGNMENT Fully Financed Transaction With Innovative Backstop Structure and Alignment • $300 million in commitments (@ $10.00/common share), led by $100 million commitment from Engaged Capital, will satisfy minimum cash condition • Actual amount funded by PIPE/backstop i
Slide 9: Why We Believe BRCC Is a Great Investment
WHY WE BELIEVE BRCC IS A GREAT INVESTMENT Authentic and Passionate Focus on Company Mission • Company mission drives customer loyalty and employee retention • Experienced management team dedicated to the company’s mission • 530,000+ shares to be donated to the BRCC Foundation Mission-Driven Lifestyl
Slide 10: Strong Financial Profile
STRONG FINANCIAL PROFILE Black Rifle Coffee Company 9 Revenue Growth & Profitability Underlined by Strong KPIs 1.9M+ Cumulative Customers and Growing 270K+ Active Coffee Club Subscribers 16 Outposts Expected to Open by FYE 20212 Top 4 RTD Coffee Brand in C-Stores1 $2.5M+ Target AUV for Outposts $36
Slide 11: What We Do
WHAT WE DO Black Rifle Coffee Company 10 Devoted to cause- related content that INFORMS, INSPIRES, ENTERTAINS, and builds our community Great coffee that consumers love, and high-quality merchandise that enables our community to showcase the brand Omni-channel business model with branded experiences
Slide 12: Large and Loyal Social Media Following
WE HAVE A LARGE AND LOYAL SOCIAL MEDIA FOLLOWING THAT LOVES INTERACTING WITH OUR CONTENT Black Rifle Coffee Company 11 Note: Social Media Followers by Brand as of November 31, 2021. 1. Includes Mat Best, Evan Hafer and Heather Lynn followers. 2. YTD as of November 2021. Includes over 2.0 billion imp
Slide 13: Our Customers Love Black Rifle Coffee Company
83 78 67 24 20 Net Promoter Score1 OUR CUSTOMERS LOVE BLACK RIFLE COFFEE COMPANY Black Rifle Coffee Company 12 Black Rifle Coffee’s NPS is on Par with Best-in-Class Lifestyle Brands and is Significantly Higher Than That of Other Coffee Leaders 1. Based on third-party surveys. 2. Company Website. Feb
Slide 14: Mission and Premium Quality Drive Customer Retention
SUPPORT FOR OUR MISSION AND OUR PREMIUM QUALITY COFFEE DRIVE EXCEPTIONAL CUSTOMER RETENTION Black Rifle Coffee Company 13 14% 21% 24% 25% 27% 32% 45% 59% 68% 84% Other Buying as a subscription Better value for coffee product Attractive packaging Brand image Buying directly from website Flavor variet
Slide 15: Powerful Omni-Channel Strategy Drives Growth
Black Rifle Coffee Company Black Rifle Coffee Company POWERFUL OMNI-CHANNEL STRATEGY DRIVES GROWTH RTD DTC Wholesale Coffee/Merchandise Outposts 84% 14% 2% 2020A 46% 33% 21% 2023E Revenue Mix Outposts Wholesale DTC Wholesale 14
Slide 16: Large Market Opportunity
LARGE MARKET OPPORTUNITY… Black Rifle Coffee Company 15 $45B+ U.S. Coffee Market $28B+ Black Rifle Coffee Company Serviceable Addressable Market $0.3B 2022E Revenue Source: BRCC Management, Stax Market Study. 1. Based on third-party models as of June 2021. $10B $4B $14B $28B+ At-Home RTD Out-of-Home
Slide 17: Proven Ability to Reach a Broad, Diverse Audience
…WITH PROVEN ABILITY TO REACH A BROAD, DIVERSE AUDIENCE Black Rifle Coffee Company 16 Black Rifle Coffee Company’s Customer Base Reaches All Geographies…1 …And Reflects Highly Attractive Demographics Top 5 MSAs 13% MSAs 6-20 23% Remaining MSAs 64% Age2 18-34 29% <$75K 29% 35-49 36% $75- 150K 36% 50+
Slide 18: Three-Pronged Strategy to Craft a Unique Brand
BLACK RIFLE COFFEE COMPANY UTILIZES A THREE– PRONGED STRATEGY TO CRAFT A UNIQUE BRAND Black Rifle Coffee Company 17 Inform “We want our audience to love coffee as much as we do, so we simply inform them on all the awesome facets to coffee that we can think of.” Inspire “We take pride in the coffee w
Slide 19: Focus on Delivering Highest Quality Coffee
Black Rifle Coffee Company Black Rifle Coffee Company Light Roast Medium Roast Dark Roast 11 oz. RTD 15 oz. RTD Cold Brew Packs Rounds Hats Shirts Accessories Hoodies Instant Coffee Women’s Blankets Drinkware Equipment Thermoses FOCUS ON DELIVERING HIGHEST QUALITY COFFEE LOYAL AND ENERGIZED CONSUMER
Slide 20: Highest-Quality Products That Deliver on Taste
FOCUS ON HIGHEST-QUALITY PRODUCTS THAT DELIVER ON TASTE AND DRIVE BRAND LOYALTY Black Rifle Coffee Company 19 Superior Coffee Premium Arabica Beans All of our beans have an 83-Point grade or higher +18%1 Black Rifle Coffee’s Average Outperformance vs. Peers on Key Flavor Criteria Owned Roasting Faci
Slide 21: Deep, Talented Leadership Team
DEEP, TALENTED LEADERSHIP TEAM WITH EXTENSIVE EXPERIENCE Evan Hafer CEO / Founder Tom Davin Co-CEO Greg Iverson CFO Mat Best Exec. Vice President Toby Johnson COO Kim Ellis Head of Development Dan Kaepernik VP of Retail Operations Founder, visionary, creative and innovative leader Seasoned strategic
Slide 22: Growth Strategy
Black Rifle Coffee Company 21 GROWTH STRATEGY
Slide 23: Multiple Growth Vectors with Detailed Tactical Plans
MULTIPLE GROWTH VECTORS WITH DETAILED TACTICAL PLANS Black Rifle Coffee Company 22 1 2 3 4 Continue Growing Our DTC Business Experiential Retail (“Outposts”) RTD and New Product Innovation $4B Online Coffee Market Size2 1,300+ Outpost Whitespace Opportunity2 $4B RTD Coffee Category2 $10B At-Home Cof
Slide 24: Leading Coffee Subscription Model with High Retention
LEADING COFFEE SUBSCRIPTION MODEL WITH HIGH RETENTION Black Rifle Coffee Company 23 1 ~2% ~3%-4% ~10% Monthly Churn Rates1 Industry Average2 270k+ active coffee club subscribers >4x attractive LTV / CAC results in profitable growth and flexibility to increase spend4 BRCC’s subscription service provi
Slide 25: Brand Awareness Presents Significant Growth Opportunity
BRAND AWARENESS PRESENTS SIGNIFICANT GROWTH OPPORTUNITY Black Rifle Coffee Company 24 1 Source: BRCC Management as of September 2020, Stax Market Study as of June 2021. Note: Represents aided brand awareness. West ~11% Texas ~16% Midwest ~16% South ~12% Northeast ~3% California ~5% BRCC has grown re
Slide 26: BRCC Outposts Are Redefining the Brand Experience
BRCC OUTPOSTS ARE REDEFINING THE BRAND EXPERIENCE Black Rifle Coffee Company 25 2 Source: BRCC Management as of October 2021, Company filings and Wall Street Research. 1. Benchmark peer metrics based on pre-covid (2020) figures, except for Dunkin which is based on their last public filings using 201
Slide 27: Long Runway for Outpost Expansion
LONG RUNWAY FOR OUTPOST EXPANSION Black Rifle Coffee Company 26 2 Source: BRCC Management, SBEA Estimates as of December 2020. 1. JLL Real Estate Development Assessment for BRCC. Priority Markets Outpost Growth – Management Forecast 8 23 53 8 13 25 2020A 2021E 2022E 2023E Franchise Corporate 36 78 1
Slide 28: Significant Opportunity in Ready-to-Drink Product
SIGNIFICANT OPPORTUNITY IN READY-TO-DRINK PRODUCT Black Rifle Coffee Company 27 3 Current RTD Product Portfolio 11 oz. offerings 15 oz. offerings Significant opportunity to expand the product portfolio and introduce new SKUs 1. Stax Market Study. 2. BRCC Management research data as of November 2021.
Slide 29: RTD Expansion & Retail Pipeline
RTD EXPANSION & RETAIL PIPELINE Black Rifle Coffee Company 28 3 Long-Term Potential Distribution Source: BRCC Management research data as of November 2021. 1. All commodity volume which is a measurement of a store’s total sales of all products relative to the sales of all relevant retailers in a giv
Slide 30: Illustrative Growth Potential in SKUs
ILLUSTRATIVE GROWTH POTENTIAL IN SKUs Black Rifle Coffee Company 29 3 2 SKUs, 2 Facings 4 SKUs, 4 Facings 6 SKUs, 8 Facings 16 23 24 29 28 25 18 16 15 20 20 21 26 26 17 21 23 24 26 22 14 14 14 19 19 22 24 24 8 11 15 14 16 20 21 27 27 8 12 16 15 17 20 22 28 28 1… 1… Jun '20 Jul '20 Aug '20 Sep '20 Oc
Slide 31: Wholesale Coffee and Merch Products Expanding Nationwide
WHOLESALE COFFEE AND MERCH PRODUCTS EXPANDING NATIONWIDE Black Rifle Coffee Company 30 4 Rapidly expanding reach in retail through unique coffee products and merchandise1 Existing Outdoor, DIY & Lifestyle Chains Partnership Examples 2,200+ ~7,200 Estimated doors at end of 2021 Potential doors with e
Slide 32: BRCC's Omni-Channel Flywheel in Action: San Antonio
BRCC’S OMNI-CHANNEL FLYWHEEL IN ACTION: SAN ANTONIO Black Rifle Coffee Company 31 Source: Black Rifle Coffee Company Management, JLL Market Study; Stax Market Study. Note: : These projections are for illustrative purposes only and estimate the San Antonio market in 2023 at run-rate. They should not
Slide 33: 2021E-2023E Revenue Growth by Channel
ADDING IT ALL UP: 2021E-2023E REVENUE GROWTH BY CHANNEL Black Rifle Coffee Company 32 Source: BRCC Management. 2021E Revenue DTC Wholesale Outposts 2023P Revenue New doors, new retailers and new SKUs Outpost builds Steady growth off substantial customer base $230 $36 $87 $78 $430 ~37% CAGR ($ in mil
Slide 34: Financial Overview
FINANCIAL OVERVIEW Black Rifle Coffee Company 33
Slide 35: Efficient and Profitable Omni-Channel Model
Black Rifle Coffee Company 34 Source: BRCC Management. Wholesale included RTD and wholesale coffee and merchandise. $74 $138 $163 $184 $199 $… $23 $55 $91 $142 $3 $12 $37 $89 2019A 2020A 2021E 2022E 2023E $82 $164 $230 $311 ’20A –’23E CAGR 216% 82% 13% $430 Revenue Revenue Mix 84% 14% 2% 46% 33% 21%
Slide 36: Expanding Consumer Touchpoints Across the U.S.
EXPANDING CONSUMER TOUCHPOINTS ACROSS THE U.S. Black Rifle Coffee Company 35 Source: BRCC Management. 1. As of end of period. 252 ~285 ~305+ ~325+ 2020A 2021E 2022E 2023E 10,600 40,000+ 75,000+ 100,000+ 2020A 2021E 2022E 2023E DTC Subscribers (000’s)1 RTD Doors1 8 23 53 8 13 25 2020A 2021E 2022E 202
Slide 37: Strong Momentum Heading into Q4
$89.5 $115.7 2020 2021 $7.4 $19.5 2020 2021 $0.7 $3.1 2020 2021 $13.5 $38.6 2020 2021 $1.0 $7.0 2020 2021 $32.8 $37.5 2020 2021 ◼ High retention subscription model ◼ Efficient media and marketing platform supports high LTV customer growth Black Rifle Coffee Company 36 STRONG MOMENTUM HEADING INTO Q4
Slide 38: Investing to Support Growth
$10 $20 $41 $9 $10 $13 $13 $1 $10 $20 $34 $54 2019A 2020A 2021E 2022E 2023E Outposts Other CapEx ($ in millions) Note: Figures reflect management estimates. ◼ $61 million of Outpost capex in 2022 and 2023 combined creates ~$110 million of first year high margin revenue ◼ Strong cash-on cash returns
Slide 39: Long-Term Goals
LONG-TERM GOALS Black Rifle Coffee Company 38 Annual Revenue Growth ~30% Gross Margin ~45% ~20% EBITDA Margin
Slide 40: Transaction Overview and Valuation
TRANSACTION OVERVIEW AND VALUATION Black Rifle Coffee Company 39
Slide 41: Transaction Highlights
TRANSACTION HIGHLIGHTS Fully Financed Transaction from $300 million of Common Equity Commitments From Innovative Backstop Structure • $300 million in commitments (@$10.00 / common share), led by $100 million commitment from Engaged Capital, will satisfy minimum cash condition • Actual amount funded
Slide 42: BRCC Highlights: Defining the Opportunity vs Peer Group
BRCC HIGHLIGHTS: DEFINING THE OPPORTUNTY VS PEER GROUP Black Rifle Coffee Company 1 2 3 4 Powerful mission-led lifestyle brand with loyal customer base and broad appeal in coffee and beyond Scalable, omni-channel platform with strong subscriber base and significant “white space” to expand brand reac
Slide 43: Operational Benchmarking
43.5% 56.8% 45.5% 44.6% 42.8% 35.3% 29.0% 27.1% 20.0% 71.9% 58.9% 58.8% 57.3% 40.9% 38.2% 52.2% 51.1% 31.9% 29.2% 27.9% 26.1% 13.3% 9.7% 31.6% 25.0% 24.2% 14.0% 13.5% 41.3% 56.5% 44.3% 43.6% 43.2% 33.0% 30.2% 28.8% 14.9% 71.7% 58.2% 58.1% 58.1% 36.7% 35.4% 59.5% 59.7% 27.9% 37.6% 30.9% 30.3% 15.8% 1
Slide 44: Valuation Benchmarking
9.1x 33.8x 21.3x 17.0x 16.7x 16.6x 12.1x 7.9x 3.9x 11.2x 11.0x 9.2x 7.1x 5.2x 4.0x 9.8x 7.4x 7.1x 6.8x 5.8x 3.4x 2.8x 1.8x 6.6x 6.6x 6.3x 4.2x 2.1x 13.3x 42.0x 25.7x 28.7x 19.4x 24.9x 13.3x 12.9x 5.3x 12.9x 13.6x 12.1x 8.3x 7.2x 5.5x 12.7x 8.4x 10.7x 7.5x 7.4x 4.3x 4.3x 2.4x 7.5x 8.7x 7.9x 4.8x 2.6x
Slide 45: Conclusion
CONCLUSION Black Rifle Coffee Company 44
Slide 46: Black Rifle Coffee Company: America's Coffee
BLACK RIFLE COFFEE COMPANY: AMERICA’S COFFEETM Black Rifle Coffee Company 45 LOYAL AND GROWING COMMUNITY • Mission-driven, lifestyle brand • In-house content driving massive social following • Broad geographic and demographic appeal • Battle-tested leadership living the lifestyle PROVEN OMNI-CHANNEL
Slide 47: Appendix
APPENDIX Black Rifle Coffee Company 46
Slide 48: Digitally-Native Brand with Rapidly Growing Subscriber Base
DIGITALLY–NATIVE BRAND WITH RAPIDLY GROWING SUBSCRIBER BASE Black Rifle Coffee Company 47 BRCC’s proprietary KPI monitoring drives targeted marketing dollars to increase subscribers and customer spend Technology-Driven Consumer Insights Ending Subscribers Q1 2017 to Q2 2021 BRCC utilizes targeted KP
Slide 49: Investing to Further Enhance the Digital Omni-Channel Experience
INVESTING TO FURTHER ENHANCE THE DIGITAL OMNI– CHANNEL EXPERIENCE Black Rifle Coffee Company 48 KEY INITIATIVES • Investment in mobile capabilities to enhance customer access, choice and control • Enhanced engagement applications to increase customer interactions and retention • Further integrate BR
Slide 50: Opportunity to Leverage Highly-Efficient Marketing
OPPORTUNITY TO LEVERAGE BLACK RIFLE COFFEE’S HIGHLY- EFFICIENT MARKETING Black Rifle Coffee Company 49 70% Website Sales From Owned Sources 7% Conversion Rate From Unpaid Web Traffic1 5x Return On Advertising Spend2 $13 M $26 M $34 M $38 M $45 M 2019A 2020A 2021E 2022E 2023E 59% CAGR 16% CAGR Histor
Slide 51: Ascension into Top Brand in RTD Coffee in ~18 Months
ASCENSION INTO TOP 4 BRAND IN RTD COFFEE IN ~18 MONTHS Black Rifle Coffee Company 50 1. For a 4-week period ending November 2021 per BRCC Management research data. % ACV shown are for top selling brand SKUs. % ACV is all commodity volume which is a measurement of a store’s total sales of all product
Slide 52: Outpost Overview
OUTPOST OVERVIEW Black Rifle Coffee Company 51 Immersive In-Store Environment Builds a Community And Broad Array of Merchandise Enables Consumers to Live the Brand Source: BRCC Management.
Slide 53: Financial Summary
Black Rifle Coffee Company 52 FINANCIAL SUMMARY Note: 2019A-2021E do not include $6M in estimated public company costs. SG&A includes salaries / wages, corporate G&A, and outpost labor, occupancy, operating costs, and above store management costs. Note: We define EBITDA as net income (loss) before i
Slide 54: EBITDA Reconciliation
Black Rifle Coffee Company Fiscal Year 2019 2020 2021E 2022E 2023E Net Income (0.8) 4.3 (12.1) (11.6) 1.2 Interest Expense 0.7 1.0 1.9 1.1 0.9 Tax Expense 0.0 0.2 0.1 0.1 0.4 Depreciation and Amortization 0.9 1.4 2.3 3.8 6.7 Reported EBITDA $0.9 $6.9 ($7.9) ($6.6) $9.2 Non-Cash Equity Based Compensa
Slide 55: Summary Key Risks
Black Rifle Coffee Company SUMMARY KEY RISKS 54 Risks Related to the Company’s Business • The Company’s success is dependent upon evolving consumer preferences and tastes, and shifts in consumer spending, lack of interest in new products, or changes in brand perception can negatively affect consumer
Slide 56: Summary Key Risks (Cont'd)
Black Rifle Coffee Company SUMMARY KEY RISKS (CONT’D) 55 Risks Related to the Company’s Business (Cont’d) • The Company's results of operations are subject to seasonal and quarterly variations, which could cause the price of our common stock to decline. • The Company must maintain adequate operation
Slide 57: Summary Key Risks (Cont'd)
Black Rifle Coffee Company SUMMARY KEY RISKS (CONT’D) 56 Risks Related to Public Company • The Company’s management team has limited experience managing a public company. • It is possible that the Company’s internal control over financial reporting is not effective because it cannot detect or preven
Black Rifle Coffee Company — SPAC Merger (December 2021) on 6ix