Black Rifle Coffee Company: A Shot At The Huge Coffee Market
I believe Black Rifle Coffee Company (NYSE:BRCC) stock is worth $9.16, representing a potential gain of 30% as of the date of writing. There are numerous reasons why BRCC is an attractive investment opportunity for potential investors. The importance of the quality of a company’s products or services cannot be overstated, and BRCC serves excellent, high-quality coffee. In an effort to give back to former military personnel, the company focuses on employing and empowering them. In fact, the majority of their customers are involved with the military in some way. BRCC has a number of strategies that will allow them to maintain their prominence in the coffee industry.
BRCC is a digitally native brand that offers premium coffee, content, and merchandise. Their omnichannel distribution structure consists of three major components. These components include direct to consumer, wholesale, and outposts.
The corporate merger was finalized on February 9, 2022. Authentic Brands became a subsidiary of BRC as a result of this agreement and the completion of a series of mergers, with BRC serving as the principal managing member.
BRCC is competitive in the $45 billion US coffee market (source: BRCC prospectus), particularly in the at-home, RTD, and out-of-home coffee segments, as well as against other consumer businesses. Competition in the market is determined by aspects such as product quality, roasting techniques, brand recognition, and technology. The strengths of BRCC are its high-quality products, robust media platform, mission-driven lifestyle brand with a loyal customer base, and scalable omnichannel strategy with many subscribers.
As the company believes that roasting improves the quality of their products, the majority of their coffee is roasted. Their customer base is quite distinctive and more appealing than the customer base of the larger coffee industry. This is evident because they frequently purchase the brand’s merchandise. In addition to coffee, these customers proudly wear Black Riffle Coffee apparel, flaunt BRCC’s banners and decals, purchase a large quantity of their products, and most importantly, they spread the word about BRCC through social media and word of mouth. Intriguingly, these customers spend more per purchase than the average coffee purchaser due to merchandise and bagged coffee. It is evident that BRCC has a strong relationship with their customers, and this alone will ensure their continued growth over the years.
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Source: Coffee Talk