BRC Inc. (NYSE: BRCC)

BRC Inc. operates as a premium coffee and energy drink company, with a strong focus on serving active-duty military, veterans, first responders, and others who share its values. The company was founded in 2014 by U.S. Army Veteran Evan Hafer and has since grown into a nationally recognized brand. BRC Inc. operates through a single reportable segment, which is composed of three primary channels: Wholesale, Direct-to-Consumer (DTC), and Outposts. The company leverages in-house media and content creation to support brand awareness, customer engagement, and community building. BRC Inc. offers a range of products, including traditional roast coffee, single-serve coffee, ready-to-drink coffee products, and Black Rifle Energy, a ready-to-drink energy beverage launched in late 2024. Additionally, the company provides Black Rifle branded apparel, coffee brewing equipment, and outdoor and lifestyle gear.

BRC Inc. generates revenue through its three primary channels. The Wholesale channel involves selling packaged coffee and ready-to-drink beverages through leading Food, Drug, and Mass (FDM) retailers such as Walmart, Sam's Club, regional and national grocery chains, and convenience stores like 7-Eleven, Casey's General Store, and Circle K. The DTC channel, which includes the company's subscription-based Coffee Club, allows customers to receive ground, whole bean, single-serve coffee, or apparel delivered to their home or office on a customizable schedule. As of December 31, 2025, the Coffee Club served approximately 159,900 active subscribers. The Outposts channel offers a company-operated and franchised coffee shop experience, featuring freshly brewed coffee, Black Rifle Coffee merchandise, and a community-oriented environment. The company's customer base primarily consists of active-duty military, veterans, first responders, and others who share its values.

• Wholesale: This channel focuses on selling packaged coffee and ready-to-drink beverages through leading FDM retailers, including Walmart, Sam's Club, regional and national grocery chains, and convenience stores like 7-Eleven, Casey's General Store, and Circle K. Additionally, the company's coffee, apparel, and gear are sold through specialty retailers like Bass Pro Shops, Scheels, and Ace Hardware. In 2025, the Wholesale channel generated $258.0 million in sales, reflecting a growth from $245.0 million in 2024. The company has prioritized expanding distribution in grocery stores, club stores, convenience stores, and specialty retailers to drive future revenue growth.

• DTC: The DTC channel is the foundation of BRC Inc.'s business, enabling the company to establish brand awareness and scale as a recognizable beverage brand in the United States. This channel includes the subscription-based Coffee Club, through which customers can receive ground, whole bean, single-serve coffee, or apparel delivered to their home or office on a customizable schedule. As of December 31, 2025, the Coffee Club served approximately 159,900 active subscribers. In 2025, DTC sales totaled $117.6 million, compared to $123.8 million in 2024, reflecting a 5% decline primarily due to consumer purchasing behavior shifting toward retail channels and reallocation of resources to grow the Wholesale channel.

• Outposts: The Outposts channel offers a company-operated and franchised coffee shop experience, featuring freshly brewed coffee, Black Rifle Coffee merchandise, and a community-oriented environment. Since opening the first Outpost in San Antonio, Texas, in 2020, the company has expanded to operate 17 company-owned Outposts and 18 franchised locations across ten states, including Texas, Utah, and Tennessee. In 2025, Outpost sales totaled $22.6 million, a slight decline from $22.7 million in 2024. While new unit growth in this channel is currently limited, the company continues to evaluate the role of this channel within its broader growth strategy, prioritizing capital allocation toward growth in the Wholesale channel.

BRC Inc. operates in a highly competitive environment across all its product categories, facing competition from large international food and beverage companies like Nestlé, Starbucks, Monster, and Pepsi, as well as private-label brands and smaller high-growth food and beverage companies. Despite these challenges, the company is uniquely positioned to compete in the U.S. coffee market and the U.S. energy drink market. Its differentiation lies in its product portfolio, brand positioning, in-house media and content capabilities, and omnichannel distribution strategy supported by a large and engaged subscriber base. The company's brand affinity supports customer retention and provides opportunities to introduce additional products over time. Additionally, BRC Inc.'s in-house roasting for a significant portion of its bagged coffee products is considered important to delivering the exceptional quality its customers expect.

The company's customer base primarily consists of active-duty military, veterans, first responders, and others who share its values. BRC Inc. has built a strong and cohesive culture centered around its mission of serving coffee and content, and supporting these communities. The company is Veteran-controlled, and approximately 32% of its employees are Veterans or military spouses. This focus on hiring Veterans and military spouses fosters a strong, cohesive culture and supports the company's mission-driven approach.