Investing in Black Rifle Coffee Company: An In-Depth Analysis

Introduction

Black Rifle Coffee Company (BRCC) is a veteran-owned coffee roaster that was founded in 2014 with the mission of providing premium coffee to those who serve and protect their country. The company has since grown to become one of the most popular coffee brands in the United States, offering a variety of high-quality coffees, teas, and merchandise. With its success and increasing popularity, many people are now considering investing in BRCC. This article will provide an in-depth analysis of investing in BRCC, including researching the company’s history and products, analyzing financials, investigating the market, examining growth potential, evaluating risk/reward ratio, exploring crowdfunding, and assessing pros and cons.

Researching the History and Products of Black Rifle Coffee Company

The first step in evaluating any potential investment is to thoroughly research the company. When it comes to BRCC, this includes looking at the company’s background information, as well as exploring the range of products offered by the company.

Looking at the Company’s Background Information

Black Rifle Coffee Company was founded in 2014 by former U.S. Army Green Beret Evan Hafer. The company is based in Salt Lake City, Utah, and is dedicated to providing premium coffee to those who serve and protect their country. BRCC has since grown to become one of the most popular coffee brands in the United States, with over 500 employees and products distributed in all 50 states, as well as internationally.

Exploring the Range of Products Offered by the Company

BRCC offers a wide range of coffee products, including whole bean, ground, single-serve capsules, cold brew, and instant coffee. The company also offers a selection of teas, as well as apparel and other merchandise. BRCC prides itself on using only the highest quality beans, which are ethically sourced from around the world.

Analyzing the Financials of the Company

The next step in evaluating an investment opportunity is to analyze the financials of the company. This includes examining the financial statements of the company, as well as assessing the profitability of the company.

Examining the Financial Statements of the Company

The most recent financial statement for BRCC can be found on its website. From this statement, we can see that the company has experienced significant growth in revenue over the past few years, with total revenue increasing from $19.5 million in 2018 to $41.8 million in 2020. The company’s net income has also increased significantly, from $1.7 million in 2018 to $6.2 million in 2020. This indicates that BRCC is a profitable company.

Assessing the Profitability of the Company

In addition to examining the financial statements, it is important to assess the profitability of the company. To do this, we need to look at the company’s gross profit margin, operating profit margin, and return on equity. BRCC’s gross profit margin is currently at 46.6%, which is above the industry average. Its operating profit margin is also above the industry average, at 20.4%. Finally, the company’s return on equity is currently at 18.9%, which is higher than the industry average.

Investigating the Current Market for Black Rifle Coffee

Once we have analyzed the financials of the company, the next step is to investigate the current market for BRCC. This includes analyzing the size of the market and assessing the demand for the company’s products.

Analyzing the Size of the Market

The global coffee market is estimated to be valued at $87 billion in 2020, and is expected to reach $109 billion by 2025. The U.S. market accounts for approximately one-third of this, at $29 billion in 2020. The specialty coffee segment of the market is growing rapidly, and is estimated to be worth $25 billion in 2020. This indicates that there is a large and growing market for BRCC’s products.

Assessing the Demand for the Company’s Products

The demand for BRCC’s products is also strong. The company’s website receives over 1 million visitors per month, and its products are sold in all 50 states, as well as internationally. Additionally, BRCC’s social media presence is strong, with over 1 million followers on Instagram and over 2 million followers on Facebook. This indicates that there is a high level of consumer interest in the company’s products.

Examining the Potential for Growth in the Company

When considering an investment, it is important to examine the potential for growth in the company. This includes identifying opportunities for expansion, as well as assessing the resources available to support growth.

Identifying Opportunities for Expansion

BRCC has identified several opportunities for expansion. The company plans to open additional retail locations, expand its product offerings, and enter new markets. Additionally, the company is exploring the possibility of launching an e-commerce platform, which would allow customers to purchase BRCC products online.

Assessing the Resources Available to Support Growth

BRCC has the financial resources available to support its growth plans. The company’s cash balance is currently at $20.7 million, and it has no debt. Additionally, the company has access to capital through venture capital firms and private investors, who have invested over $50 million in the company. This indicates that BRCC has the resources available to support its growth plans.

Considering the Risk/Reward Ratio of an Investment in Black Rifle Coffee

Before making an investment, it is important to consider the risk/reward ratio of the investment. This includes evaluating the risks of investing in the company, as well as analyzing the potential rewards of investing in the company.

Evaluating the Risks of Investing in the Company

As with any investment, there are risks associated with investing in BRCC. These include the risk of downturns in the economy, changes in consumer tastes, and competition from other companies. Additionally, BRCC is a relatively new company, and therefore may not have the same level of stability as more established companies.

Analyzing the Potential Rewards of Investing in the Company

Despite the risks, investing in BRCC could potentially result in significant rewards. The company has experienced significant growth over the past few years, and its products are in high demand. Additionally, the company has identified opportunities for expansion, and has the financial resources available to support its growth plans. This indicates that investing in BRCC could potentially result in significant returns.

Exploring the Possibility of Investing Through a Crowdfunding Platform

Another option for investing in BRCC is to utilize a crowdfunding platform. This involves investing in the company through a platform such as Kickstarter or Indiegogo. This type of investment has several advantages, including reduced risk and the ability to invest smaller amounts of capital.

Looking at Popular Crowdfunding Platforms

There are several popular crowdfunding platforms that can be used to invest in BRCC. These platforms include Kickstarter, Indiegogo, and GoFundMe. Each of these platforms has different rules and regulations, so it is important to research each platform before investing.

Assessing the Benefits of Investing Through Crowdfunding

Investing through a crowdfunding platform has several benefits. First, it allows investors to invest smaller amounts of capital, which reduces the risk of loss. Additionally, it provides investors with access to investments that may not be available through traditional methods. Finally, it allows investors to connect with other investors and share ideas and insights.

Assessing the Pros and Cons of Investing in Black Rifle Coffee

The final step in evaluating an investment opportunity is to assess the pros and cons of investing in the company. This includes identifying the advantages of investing in the company, as well as analyzing the disadvantages of investing in the company.

Identifying the Advantages of Investing in the Company

Investing in BRCC has several advantages. First, the company has experienced significant growth over the past few years, and its products are in high demand. Additionally, the company has identified opportunities for expansion, and has the financial resources available to support its growth plans. Finally, investing in BRCC through a crowdfunding platform allows investors to invest smaller amounts of capital and reduce their risk of loss.

Analyzing the Disadvantages of Investing in the Company

Investing in BRCC also has some disadvantages. The company is relatively new, and therefore may not have the same level of stability as more established companies. Additionally, there is always the risk of downturns in the economy, changes in consumer tastes, and competition from other companies. Finally, crowdfunding platforms have rules and regulations that must be followed, which can limit the amount of capital that can be invested.

Conclusion

Investing in BRCC presents both risks and rewards. On the one hand, the company has experienced significant growth over the past few years, and its products are in high demand. Additionally, the company has identified opportunities for expansion, and has the financial resources available to support its growth plans. On the other hand, BRCC is a relatively new company, and there is always the risk of downturns in the economy, changes in consumer tastes, and competition from other companies. Ultimately, the decision to invest in BRCC should be made after careful consideration of the risks and rewards involved.