Black Rifle Coffee Company

Last updated

Black Rifle Coffee Company
Company type Public
NYSE:  BRCC
IndustryRetail
Founded2014;10 years ago (2014)
Headquarters Salt Lake City, Utah, United States
Key people
Evan Hafer, Mat Best, Tom Davin, Richard Ryan, Jarred Taylor, Andy Stumpf, Dennis Adams
ProductsCoffee, clothing, mugs
Website www.blackriflecoffee.com

Black Rifle Coffee Company (BRCC) is a coffee company based in Salt Lake City, Utah, United States. [1] Founded in 2014 by former U.S. Army Green Beret Evan Hafer, it gained national attention in 2017 after pledging to hire 10,000 veterans to protest Starbucks's pledge of 10,000 Refugees. [2] [3] [4]

Contents

History

The company was founded in December 2014 by former Green Beret Evan Hafer. [5] He began by selling a small volume of his "Freedom Roast" coffee through a friend's apparel website. The coffee sold well, so Hafer launched his own brand and website through which to sell his coffee and branded accessories. The company specializes in its online, direct-to-consumer coffee subscription service, which had over 100,000 subscribers as of 2020. [6] In addition to online sales, Black Rifle Coffee Company has physical coffee shops in Utah, Texas, Florida, Oklahoma, Georgia, Montana and Tennessee. [7] The coffee is also distributed at some firing ranges, [8] 5.11 Tactical stores, [5] and Bass Pro Shops. [9]

In 2017, BRCC expanded into Canada with a division based in Alberta and led by CEO Darren Weeks. [10]

In 2018, BRCC opened a new coffee roasting facility in Manchester, Tennessee, as part of a $6 million investment in the state. [11] It also launched Coffee or Die Magazine, [12] an online news and lifestyle publication that reports on military, veteran, law enforcement, and coffee topics. [13] In 2018, the company's gross revenue totaled $30 million. [14] In 2019, BRCC employed more than 200 people—40 percent of them veterans of the U.S. military. At the time of reporting, their products were available at 1,700 retail locations across the country. On September 29, 2019, BRCC opened its first stand-alone licensed coffee shop in Boerne, Texas. [15] According to the Washington Examiner , circa 2021 they employed approximately 550 people, half of whom were veterans, military spouses or reservists. [16]

The company expanded in 2020 with the release of ready-to-drink canned iced coffee. [17] In March 2020, BRCC launched a coffee-donation campaign to support medical and emergency workers, quarantined military personnel and their families, and others working to mitigate the national and global impact of the COVID-19 pandemic. [18] In May, a Canadian gun ban enacted following the 2020 Nova Scotia attacks was mistakenly thought to include a ban on the coffee company, but further inspection revealed that the ban was actually applied to a similarly named Arizona-based "BlackRifle Company". [19]

A July 2021 article in The New York Times , Hafer describes his vision for growth of the physical franchised stores using retired military non-commissioned officers (NCOs). He sees Navy petty officers and Army staff sergeants joining the company and running a franchise of their own rather than joining the local police force in their hometowns. [20]

SPAC

In November 2021, Black Rifle Coffee Company merged with SilverBox Engaged Merger Corporation via a special-purpose acquisition company in an effort to raise funds for expansion and to go public. The company has a valuation of approximately $1.7 billion. [21] The merger completed in February 2022. [22]

Politics

Black Rifle Coffee Company's corporate image is built on its conservative politics and support for veterans. In 2018 over half of its staff were former military. [14]

The company maintains a pro-military, pro-gun, pro-police image [23] [24] and has publicly supported the politics of former US President Donald Trump through actions such as publishing a (since-deleted) blog post that supported Trump's then-current proposal of an immigration ban from Muslim majority countries. [25] [26] The company's political stance has attracted attention from Fox News, [27] and it has been endorsed by conservative broadcast personality Sean Hannity [28] and Donald Trump Jr. [4]

A 2021 Salon article reported that BRCC is trying to draw a line and distance themselves from "the far-right" after their logos and gear appeared on Kyle Rittenhouse, a teen who was acquitted after killing two people and injuring another during a Black Lives Matter riot in Kenosha, Wisconsin. [29] Black Rifle Coffee's symbols were also present on rioters who attacked the United States Capitol on January 6, 2021. [30]

Marketing

Noah Gragson's NASCAR Xfinity Series car with Black Rifle sponsorship in 2022 Noag gragson burnout (52240839707).jpg
Noah Gragson's NASCAR Xfinity Series car with Black Rifle sponsorship in 2022

The company's brand is tied closely to its pro-gun and socially conservative image as well as close links with American military and law enforcement.

In 2017, BRCC launched an advertising campaign based on their plan to hire 10,000 veterans. While it was conceived previously, [31] BRCC launched the campaign after coffee retailer Starbucks Corporation launched an advertising campaign centered around their plan to hire 10,000 refugees. [32] BRCC released a meme on social media that juxtaposed an image of ISIS fighters photoshopped with Starbucks cups next to an image of American soldiers in combat, which read: "Starbucks vows to hire 10,000 refugees," and "Black Rifle Coffee Company vows to hire 10,000 veterans." [31] Company posts associated with the ad campaign labelled Starbucks "Hipsterbucks." [5] While Hafer criticized what he saw as a publicity stunt by Starbucks, BRCC also received similar criticism around their ad campaign, especially because of the size disparity between BRCC and Starbucks as well as the suggestion in BRCC's ad campaign that Starbucks doesn't hire veterans. In 2013, Starbucks CEO Howard Schultz and former Secretary of Defense Robert Gates had launched a similar program to hire 10,000 veterans in the next five years and by 2017 had hired 8,000 of them. As of February 2017, BRCC employed 52 people in total. Hafer responded that BRCC and Starbucks are very different companies, and that their size disparity meant that BRCC's proposal was a much more ambitious plan. [31] In a 2017 interview with Vice News, founder Hafer commended Starbucks' veteran hiring program and clarified that he supports all hiring pushes as long as the message is a positive one. [5]

For a campaign in July 2019, BRCC donated a bag of coffee to a police officer for every bag purchased, in response to a story that six Tempe, Arizona police officers had been asked to leave a branch of Starbucks. [33]

BRCC rejected a potential logo for one of their coffee bags featuring a Renaissance-style rendering of Saint Michael the Archangel, a patron saint of military personnel, shooting a short-barreled rifle. The design was rejected when Hafer was informed by a friend at the Pentagon that the image of Saint Michael standing on the neck of Satan was being used by white supremacists because of the resemblance to George Floyd's murder. [20]

The company sponsors NASCAR drivers Ty Dillon, Noah Gragson, and Matt Crafton. [34] [35] [36] In the American Rally Association, BRCC-sponsored drivers like Travis Pastrana and Dave Carapetyan compete under the Black Rifle Coffee Motor Sports Team name. [37] Pastrana, whose family is closely tied to the military, also has a personal endorsement deal with BRCC that began in 2022 after ending his partnership with longtime sponsor Red Bull; [38] the two parties first collaborated for a rally car helicopter jump stunt in 2018. [39] Other athletes supported by BRCC include off-road racer BJ Baldwin and skateboarder Bucky Lasek. [40]

In July 2022, the Dallas Cowboys were criticized for announcing a new partnership with BRCC a day after the Highland Park parade shooting on Independence Day. Black Rifle subsequently released a statement explaining the news was "timed to coincide with the Independence Day holiday" and that the partnership had been discussed long before the date. [41] [42]

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References

  1. ↑ Rocco, Matthew (21 May 2018). "Veteran-owned Black Rifle Coffee Company to invest $6M in Tennessee expansion". Fox Business . Retrieved 23 May 2019.
  2. ↑ Limitone, Julia (2017-02-06). "Black Rifle Coffee Company Vows to Hire Vets After Starbucks Refugee Pledge". Fox Business . Retrieved 2020-08-31.
  3. ↑ Zengerle, Jason (2021-07-14). "Can the Black Rifle Coffee Company Become the Starbucks of the Right?". The New York Times. ISSN   0362-4331 . Retrieved 2021-09-07.
  4. 1 2 Taylor, Kate (13 November 2017). "Donald Trump Jr. slams Keurig and endorses a pro-Trump, pro-guns, and pro-military coffee company". Business Insider . Retrieved 23 May 2019.
  5. 1 2 3 4 Castrodale, Jelisa (1 August 2017). "We Spoke to the Black Rifle Coffee Owner About Guns, Hipsters, and Hiring Veterans". Vice . Retrieved 23 May 2019.
  6. ↑ Berthene, April (2020-04-09). "Online sales surge at Black Rifle Coffee". Digital Commerce 360. Retrieved 2020-08-31.
  7. ↑ Blount, Chuck (2020-08-04). "Black Rifle Coffee opening first S.A. location soon". Mysa. Retrieved 2020-08-31.
  8. ↑ "Store Locator". Black Rifle Coffee Company. Retrieved 2020-08-31.
  9. ↑ "Grounded in Data: Hyper-Growth DTC Subscription Coffee Brand Black Rifle Coffee Company Adopts SoundCommerce for Insights and Decisioning". Yahoo! Finance. Retrieved 2020-08-31.
  10. ↑ "Controversial 'conservative-minded' coffee company sets up shop in St. Albert". CBC News . 2 May 2018. Retrieved 23 May 2019.
  11. ↑ "Black Rifle Coffee Company Opens Manchester, Tennessee, Roasting Facility". Area Development. 16 August 2018. Retrieved 23 May 2019.
  12. ↑ "Letter From the Editor: The Launch of Coffee or Die Magazine". Coffee or Die Magazine. 2018-06-29. Retrieved 2020-08-31.
  13. ↑ "About Coffee or Die". Coffee or Die Magazine. Retrieved 2020-08-31.
  14. 1 2 Rockefeller, Mark (5 April 2018). "How This Veteran Entrepreneur Brewed $30 Million From Coffee And Passion". Forbes . Retrieved 23 May 2019.
  15. ↑ "The Untold True Story Of How Black Rifle Coffee Got Its Start". Coffee, or Die. 22 November 2019. Retrieved 8 September 2020.
  16. ↑ A new Battlefield to Conquer, America's war veterans face down corporate behemoths as small-business owners By Nicole Russell, Washington Examiner, November 9, 2021, pages 12-13
  17. ↑ Barber, James (2020-06-16). "Black Rifle Coffee Launches Tactical Caffeine Delivery System". Military.com. Retrieved 2020-08-31.
  18. ↑ "Black Rifle Coffee Co. Launches Coffee-Donation Campaign to Support Medical Workers & Military Personnel Battling COVID-19 Outbreak". KTVN . Retrieved 2020-08-31.
  19. ↑ Snyder, Jesse (May 12, 2020). "Trudeau's gun ban appeared to prohibit some coffee, a website and a toy. Here's why". National Post .
  20. 1 2 Zengerle, Jason (2021-07-15). "Can the Black Rifle Coffee Company Become the Starbucks of the Right?". The New York Times . Archived from the original on 2021-07-17. Retrieved 2021-07-20.
  21. ↑ Bezek, Ian (2021-11-29). "Black Rifle Coffee Aims to be the Next Big Controversial SPAC". InvestorPlace. Retrieved 2021-12-07.
  22. ↑ Brown, Nick (February 10, 2022). "Black Rifle Coffee Company Joins the New York Stock Exchange". Daily Coffee News.
  23. ↑ van Zuylen-Wood, Simon (4 March 2019). "The Heavily Armed Millennials of Instagram". The Washington Post . Retrieved 23 May 2019.
  24. ↑ Breland, Ali; Helenowski, Mark. "How Black Rifle Coffee Company made itself one of the right's biggest brands". Mother Jones. Retrieved 2021-02-27.
  25. ↑ "Political Temper Tantrums, Shitty Coffee and Jackassery in America". Blog | Black Rifle Coffee Company. 2017-01-31. Archived from the original on 2017-02-07. Retrieved 2022-03-17.{{cite web}}: CS1 maint: bot: original URL status unknown (link)
  26. ↑ Taylor, Kate (7 February 2017). "This veteran-run coffee company wants to take on 'anti-American' Starbucks to 'make coffee great again'". Business Insider . Retrieved 11 January 2021.
  27. ↑ Limitone, Julia (5 December 2017). "'Pro-America' Black Rifle Coffee becoming popular among conservatives, founder says". Fox News . Retrieved 23 May 2019.
  28. ↑ Millard, Drew (26 May 2018). "The world's only pro-gun coffee tastes like burnt dirt" . Retrieved 23 May 2019.
  29. ↑ Vogt, Adrienne; Sangal, Aditi; Wagner, Meg; Macaya, Melissa; Mahtani, Melissa (November 19, 2021). "Rittenhouse jury reaches verdict". CNN. Archived from the original on November 19, 2021. Retrieved November 19, 2021.
  30. ↑ Bachman, Brett (July 17, 2021). "Inside the right-wing civil war brewing after Black Rifle Coffee denounces extremists". Salon. Retrieved July 18, 2021.
  31. 1 2 3 Linehan, Adam (6 February 2017). "After Viral Meme, Can Black Rifle Coffee Company Really Hire 10,000 Veterans?". taskandpurpose.com. Task and Purpose. Retrieved 15 August 2019.
  32. ↑ Miller, Michelle (3 February 2018). "Black Rifle Coffee: Behind the company selling beans with a message". CBS News . Retrieved 23 May 2019.
  33. ↑ Widener, Laura (8 July 2019). "Vet-owned Black Rifle Coffee to donate coffee to cops after Starbucks kicks out 6 officers". American Military News . Retrieved 5 August 2019.
  34. ↑ "Black Rifle Coffee Company Announces Multi-Race Partnership with Ty Dillon and Petty GMS". Petty GMS Motorsports (Press release). February 3, 2022. Retrieved September 7, 2022.
  35. ↑ "Bass Pro Shops, TrueTimber and Black Rifle Coffee add 16 races to sponsorship of Noah Gragson". JR Motorsports (Press release). Jayski's Silly Season Site. July 28, 2020. Retrieved September 7, 2022.
  36. ↑ Warner, Lauren. "Truck Racing Makes Its Way Onto the BRCC Motor Sports Team by Way of Matt Crafton". Black Rifle Coffee Company. Retrieved September 7, 2022.
  37. ↑ Warner, Lauren (May 21, 2022). "BRCC Motor Sports Team Shows Up for Olympus Rally". Black Rifle Coffee Company. Retrieved September 7, 2022.
  38. ↑ "Travis Pastrana leaves Red Bull & signs with Black Rifle Coffee". Motocross Action. January 11, 2022. Retrieved September 7, 2022.
  39. ↑ Simkins, Jon (May 22, 2018). "Daredevil Travis Pastrana, Black Rifle Coffee partner for death-defying stunt". Military Times. Sightline Media Group . Retrieved September 7, 2022.
  40. ↑ Warner, Lauren. "BRCC Doubles Down on Motor Sports". Black Rifle Coffee Company. Retrieved September 7, 2022.
  41. ↑ Krietzberg, Ian (July 7, 2022). "Dallas Cowboys criticized for announcing partnership with Black Rifle Coffee after mass shooting". CNBC . Retrieved September 7, 2022.
  42. ↑ Jiménez, Jesus (July 7, 2022). "Dallas Cowboys Face Criticism After Partnership With Black Rifle Coffee". The New York Times . Retrieved September 7, 2022.

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