Q1 2022 BRC Inc Earnings Call

May 12, 2022

Operator: Greetings, and welcome to the Black Rifle Coffee Company Q1 2022 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. I would now like to turn the call over to Tanner Doss, Vice President of Investor Relations. Thank you. You may begin.

Greetings and welcome to the Black Rifle Coffee Company first quarter 2022 earnings call. At this time all participants are in a listen only mode.

Greetings and welcome to the Black Wreckful Coffee Cup Coffee company first quarter 2022 earnings call.

All participants are in a listen only mode.

The question and answer session will follow the formal presentation. If anyone wants to require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded.

A question and answer session will follow the formal presentation. Finally, once you require operator assistance during the conference. Please press star zero on your telephone keypad.

As a reminder, this conference is being recorded.

I would now like to turn the call over to Tanner Doth, Vice President of Investor Relations. Thank you.

Now I'd like to turn the call over to Canada, Vice President of Investor Relations. Thank you you may begin.

Tanner Doss: Good morning, everyone. Thank you for joining Black Rifle Coffee Company's conference call to discuss our Q1 2022 financial results, which we released this morning and can be found on our website at ir.blackriflecoffee.com. With me on the call today is Evan Hafer, Founder and Chief Executive Officer, Tom Davin, Co-Chief Executive Officer, Greg Iverson, Chief Financial Officer, Toby Johnson, Chief Operating Officer, and Heath Nielsen, Chief Retail Officer. Before we get started, I would like to remind you of the company's Safe Harbor language, which I'm sure you are all familiar with. On today's call, management may make forward-looking statements including guidance and underlying assumptions. Forward-looking statements are based on expectations that involve risks and uncertainties that could cause actual results to differ materially. For a further discussion of risks related to our business, please see our previous filings with the SEC.

Good morning, everyone. Thank you for joining Black Rifle Coffee Company's conference call to discuss our first quarter 2022 financial results, which we released this morning and can be found on our website at ir.blackriflecoffee.com.

Good morning, everyone. Thank you for joining Blackrock for coffee company's conference call to discuss our first quarter 2022 financial results, which we released this morning and can be found on our website at IR <unk> Black rifle coffee Dot com.

With me on the call today is Evan Hafer, founder and chief executive officer, Tom Daven, co chief executive officer, Greg Iverson, chief financial officer, Toby Johnson, chief operating officer, and Heath Nielsen, chief retail officer.

With me on the call today is Evan Hafer, founder and Chief Executive Officer, Tom Davin Co Chief Executive Officer.

Greg Iverson, Chief Financial Officer, Toby Johnson, Chief operating Officer, and Heath Nielsen Chief Retail officer.

Before we get started, I would like to remind you of the company's Safe Harbor language, which I'm sure you are all familiar with.

Before we get started I would like to remind you the companys safe Harbor language, which I'm sure you're all familiar with.

On today's call, management may make forward-looking statements, including guidance and underlying assumptions.

On today's call management may make forward looking statements, including guidance and underlying assumptions.

Forward-looking statements are based on expectations that involve risks and uncertainties that could cause actual results to differ materially.

Looking statements are based on expectations that involve risks and uncertainties that could cause actual results to differ materially.

For further discussion of risks related to our business, please see our previous filings with the SEC.

For a further discussion of risks related to our business. Please see our previous filings with the SEC.

Tanner Doss: This call will contain non-GAAP financial measures such as adjusted EBITDA. Reconciliations of these non-GAAP measures to the most comparable GAAP measure are included in the earnings release furnished to the SEC, and they are also available on our investor website. Now I'd like to turn the call over to Evan Hafer, Founder and Chief Executive Officer of Black Rifle Coffee Company.

Tanner Doss: This call will contain non-GAAP financial measures such as Adjusted EBITDA. Reconciliations of these non-GAAP measures to the most comparable GAAP measure are included in the earnings release furnished to the SEC, and they are also available on our investor website. Now I'd like to turn the call over to Evan Hafer, Founder and Chief Executive Officer of Black Rifle Coffee Company.

This call will contain non-GAAP financial measures such as adjusted EBITDA...

This call will contain non-GAAP financial measures such as adjusted EBITDA.

Reconciliations of these non-GAAP measures to the most comparable GAAP measure are included in the earnings release furnished to the SEC and they are also available on our investor statement.

Reconciliations of these non-GAAP measures to the most comparable GAAP measure are included in the earnings release furnished to the SEC and they're also available on our Investor website.

Now I'd like to turn the call over to Evan Hafer, founder and chief executive officer of Black Rifle Copy.

Now I'd like to turn the call over to <unk>, founder and Chief Executive Officer of Blackrock will coffee company. Thanks, Tanner and good morning, everyone. Thank you for joining us to discuss our first quarter 2020 results before we dive into the results of the first quarter I briefly want to touch on our mission and vision. We work towards every day I believe the black Ripple coffee company is uniquely positioned.

Evan Hafer: Thanks, Tanner, and good morning, everyone. Thank you for joining us to discuss our Q1 2022 results. Before we dive into the results of Q1, I briefly wanna touch on our mission and vision we work towards every day. I believe that Black Rifle Coffee Company is uniquely positioned because we are the only mission-driven lifestyle brand in the coffee industry, and our mission is core to everything we do. The mission is a major driver behind our success to date because it resonates with our customers, our retail partners, vendors, and even our landlords. Our in-house marketing team and content creators have enabled us to build a large and growing community who are loyal to the brand and what we're doing for vets, first responders, and their families.

Thanks Tanner and good morning everyone. Thank you for joining us to discuss our first quarter 2022 results. Before we dive into the results of the first quarter, I briefly want to touch on our mission and vision we work towards every day. I believe that Black Ripple Coffee Company is uniquely positioned in the market because we're the only mission driven lifestyle brand in the coffee industry. And our mission is to provide the best quality coffee in the world.

The Mark because we are the only mission driven lifestyle brand in the coffee industry and our mission is core to everything we do the.

The mission is a major driver behind our success to date, because it resonates with our customers, our retail partners, vendors, and even our landlords. Our in-house marketing team and content creators have enabled us to build a large and growing community who are loyal to the brand and what we're doing for vets, first responders, and the...

The mission is a major driver behind our success to date, because it resonates with our customers our retail partners vendors and even our landlords our in house marketing team and content creators have enabled us to build a large and growing community who are loyal to the brand and what we're doing for vets first responders and their families.

Evan Hafer: People always ask me, "What has made Black Rifle Coffee so successful over the past eight years?" I'll always respond with the same answer. First and foremost, people align with and support the mission of helping veterans, first responders, and their families. We believe we are the only publicly traded company addressing this mission, and we went public as a public benefit corp to ensure that we'll never lose sight of the overall goal. Second, it's the community that we have built around the brand. The community started organically as myself, Mat Best, and Jarred Taylor started making videos on YouTube that were inside jokes for military and veterans. That has grown into a community of over 2 million customers and evangelists who support our mission.

People always ask me, what has made Black Red for Coffee so successful over the past

People always ask me what is made Blackrock for coffee so successful over the past eight years.

and always respond with the same answer. First and foremost, people align with and support the mission of helping veterans, first responders, and their families.

And I always respond with the same answer first and foremost people align with and support the mission of helping veterans first responders and their families.

We believe we are the only publicly traded company addressing this mission and we went public as a public benefit corp to ensure that we'll never lose sight of the overall goal. Second, it's the community that we have built around the brand. The community started organically as myself, Matt Bass and Jared Taylor started making videos on YouTube that were inside jokes.

We believe we are the only publicly traded company addressing this mission and we went public as a public benefit corp to ensure that we'll never lose sight of the overall goal second.

It's a community that we have built around the brand the community started organically as myself, Matt best in Jared Taylor started making videos on Youtube that were inside jokes for military and veterans that has grown into a community of over 2 million customers and evangelists, who support our mission.

for military and veterans that has grown into a community of over two million customers and evangelists who support our mission. I've had thousands of people come up to me in airports and grocery stores.

Evan Hafer: I've had thousands of people come up to me in airports and grocery stores to give me a high five and show me their Black Rifle Coffee hat or shirt and say thank you for all that Black Rifle Coffee has done for the veteran community. This shared passion for the brand and our mission allows us to be teammates and partners with our customers. Because of this partnership and trust that we have built within our community, we're confident in fact that as long as we're true to our mission, we will continue to win and continue to take market share. This loyal and growing community has been and will always be the reason we are successful and how we continue to grow quarter after quarter. Q1 2022 was another milestone in our journey of a newly public company.

Thousands of people come up to me and airports and grocery stores to give me a high five and show me, there Blackrock with coffee hat or sure.

give me a high five and show me their Black Chrysler coffee hat or shirt and say thank you for all that Black Chrysler coffee has done for the veteran community. This shared passion for the brand and our mission allows us to be teammates and partners

Thank you for all the black rightful coffee has done for the veteran community the shared passion for the brand and our mission allows us to be teammates and partners with our customers.

Because of this partnership and trust that we have built within our community, we're confident in fact that as long as we're true to our mission, we will continue to win and continue to take mark.

Because of this partnership interests that we have built within our community. We're confident in fact that as long as we're true to our mission. We will continue to win and continue to take market share. This loyal and growing community has been and will always be the reason we are successful and how we continue to grow quarter after quarter. The first.

This loyal and growing community has been and will always be the reason we are successful and how we continue to grow quarter after quarter.

The first quarter of 2022 was another milestone in our journey of a newly public company. I will start by walking you through some of the business highlights in the quarter before turning the call over to Tom Davin. As we discussed on last quarter's earnings call, we detailed our key strategic investment areas that needed to be resolved as we continue to pursue sustainable growth. I'm very happy to report that we have made great progress with all of these initiatives.

After a 2022 was another milestone in our journey of a newly public company I will start by walking you through some of the business highlights in the quarter before turning the call over to Tom Davin as we discussed on last quarter's earnings call. We detailed our key strategic investment areas that needed to be resolved as we continue to pursue sustainable growth.

Evan Hafer: I will start by walking you through some of the business highlights in the quarter before turning the call over to Tom Davin. As we discussed on last quarter's earnings call, we detailed our key strategic investment areas that needed to be resolved as we continue to pursue sustainable growth. I'm very happy to report that we have made great progress with all of these initiatives. Our first area of strategic investment is capacity. Demand for our products on all fronts has far exceeded supply, so the team has been focused on bringing new capacity in multiple areas. We've added two new suppliers for our ready-to-drink line and are expanding our roasting capacity. Our second area of strategic investment is people. People drive our business, and we're focused on adding key capabilities to enable us to continue to grow.

I'm very happy to report that we have made great progress with all of these initiatives.

first area of strategic investment is capacity. Demand for our products on all fronts has far exceeded

Our first area of strategic investment as capacity demand for our products on all fronts as far exceeded supply. So the team has been focused on bringing new capacity in multiple areas. We've added two new suppliers for our ready to drink line and are expanding our roasting capacity, our second area of strategic investment as people people who drive.

So the team has been focused on bringing new capacity in and multiple areas.

We've added two new suppliers for our ready to drink line and are expanding our roasting capacity. Our secondary strategic investment is people. People drive our business and we're focused on adding key capabilities to enable us to continue to grow. This quarter, we have added two key strategic senior leadership hires. We brought a CD that tipping YouTube channel.

Our business and we're focused on adding key capabilities to enable us to continue to grow this quarter. We have added two key strategic senior leadership hires we brought on Heath Nelson, our new Chief Retail Officer Heath comes to be RCC from just food for dogs, where he was the CEO of a fast growing omnichannel business with over three.

Evan Hafer: This quarter, we have added two key strategic senior leadership hires. We brought on Heath Nielsen, our new Chief Retail Officer. Heath comes to BRCC from JustFoodForDogs, where he was the CEO of a fast-growing omni-channel business with over 300 retail locations across the United States. Heath previously led operations for Nestlé Coffee Partners, Starbucks division as a senior vice president. Prior to Nestlé, Heath led all of Starbucks franchise cafe and food service operations in North America. Heath's expertise is an incredible asset to the business and will further enhance our customer experience in all of our Outposts. Today, we are also announcing the hiring of Chris Clark, our new Chief Technology Officer, joining BRCC next Monday, 16 May. Chris is coming to us from Levi Strauss & Co., where he served as a senior vice president and Chief Information Officer.

Our new Chief Retail Officer, Heath comes to BRCC from Just Food for Dogs, where he was the CEO of a fast-growing omni-channel business with over 300 retail locations across the United States. Heath previously led operations for Nestle Partners.

300 retail locations across the United States. He previously led operations for Nestle Partners Starbucks Division as a senior Vice President prior to Nestle Heath led all of Starbucks franchise Cafe in foodservice operations in North America Heath expertise is an incredible asset to the business and will further enhance our customer experience.

Starbucks division as a senior vice president. Prior to Nestle, Heath led all of Starbucks franchise cafe and food service operations in North America. Heath's expertise is an incredible asset to the business and will further enhance our customer experience in all of our businesses.

In all of our outposts today, we're also announcing the hiring of Chris Clark, Our new Chief Technology Officer, joining BRC next Monday may 16th Christmas coming to Us from Levi Strauss <unk> co where he served as the senior Vice President and Chief Information officer prior to being named to the CIO, Chris led the global supply.

Today, we are also announcing the hiring of Chris Clark, our new chief technology officer joining BRCC, next Monday, May 16th. Chris is coming to us from Levi's Strouse.

where he served as a senior vice president and chief information officer. Prior to being named the CIO, Chris led the global supply chain and business intelligence

Evan Hafer: Prior to being named the CIO, Chris led the global supply chain and business intelligence groups. Before Levi's, Chris led supply chain operations at lululemon and Gap. His breadth of technology and supply chain experience will provide a competitive edge to us as we continue to scale all parts of our business, taking our digitally native roots and tying them together to create an omni-channel flywheel model. Most importantly, both Heath and Chris are military veterans, which continues to show our commitment to our mission of hiring 10,000 vets. At BRCC, we will continue to strive to be the top employer of choice for veterans, first responders, and their families, providing training and opportunities for advancement with like-minded individuals no matter what part of the business they're supporting.

And business intelligence groups before.

Before Leave Eyes, Chris led supply chain operations at Lululemon and Gap. His breadth of technology and supply chain experience will provide a competitive edge to us as we continue to scale all parts of our business, taking our digitally native roots and tying them together to create an omnichannel flywheel model. Most importantly, both Heath and Chris are military veterans.

Before Levis, Chris led supply chain operations at Lulu Lemon and gap is breadth of technology and supply chain experience will provide a competitive edge to us as we continue to scale all parts of our business, taking our digitally native routes and tying them together to create an omnichannel flywheel model. Most importantly, both heath and.

Chris our military veterans, which continues to show our commitment to our mission of hiring 10000 beds at <unk>, we will continue to strive to be the top employer of choice for veterans first responders and their families providing training and opportunities for advancement with Likeminded individuals' no matter, what part of the business, they're supporting with these achieve.

which continues to show our commitment to our mission of hiring 10,000 vets. At BRCC, we will continue to strive to be the top employer of choice for veterans, first responders, and their families.

providing training and opportunities for advancement with like-minded individuals no matter what part of the business they're supporting. With these achievements this quarter we continue to build a stronger foundation for sustainable growth and our goal is to now

Evan Hafer: With these achievements this quarter, we continue to build a stronger foundation for sustainable growth, and our goal is to now drive the brand awareness, fueling market share expansion. As mentioned in our last call, BRCC's unaided brand awareness is hovering around 20% nationally and even lower among active duty in the veteran community. Although the demand for our products has never been stronger, we're just getting started building our brand awareness. During the quarter, we continued shifting our marketing efforts from paid media to owned media through investments in influencers, brand ambassadors, podcasts, and sports. This shift has been facilitated by fully realigning our marketing and branding departments, resulting in a streamlined communication and collaboration between the two. We made this adjustment to ensure that our marketing and ad spend are achieving the highest return on our investment.

<unk> this quarter, we continue to build a stronger foundation for sustainable growth and our goal is to now drive the brand awareness fueling market share expansion as mentioned in our last call BRC sees unaided brand awareness is hovering around 20% nationally and even lower among active duty and the veteran community although demand for our products has never.

drive the brand awareness fueling market share expansion. As mentioned in our last call, BRCC's unaided brand awareness is hovering around 20% nationally and even lower among active duty in the veteran community. Although the demand for our products has never been stronger, we're just getting started building our brand awareness.

Been stronger we are just getting started building our brand awareness during the quarter. We continued shifting our marketing efforts from paid media to owned media through investments and Influencers branded Bachelors podcast and sports. This shift has been facilitated by fully realigning, our marketing and branding departments, resulting in a streamlined communication and collaboration.

During the quarter, we continued shifting our marketing efforts from paid media to owned media through investments in influencers, brand ambassadors, podcasts and

This shift has been facilitated by fully realigning our marketing and branding departments, resulting in a streamlined communication and collaboration between the two. We made this adjustment to ensure that our marketing and ad spend are achieving the highest return on our investment. We are actively targeting our marketing and branding spend in the following ways. First, as we mentioned our previous call, we brought on some new ambassadors. One example that we're thrilled about is Travis Pastrana, who's one of the best-known action sports athletes in the world.

Between the two we need this adjustment to ensure that our marketing and AD spend or achieving the highest return on our investment we are actively targeting our marketing and branding spend in the following ways first as we mentioned in our previous call. We brought on some new ambassadors. One example that we're thrilled about is Travis Strana who's one of the best known action sports.

Evan Hafer: We are actively targeting our marketing and branding spend in the following ways. First, as we mentioned in our previous call, we brought on some new ambassadors. One example that we're thrilled about is Travis Pastrana, who's one of the best-known action sports athletes in the world. Travis has also a number of family members that served in the military and is passionate about serving veterans and their families. Travis has been a good friend of mine and the team of Black Rifle Coffee for a long time, and his transition from Red Bull to Black Rifle was a big win for us. The Gymkhana franchise that Travis is a part of has over 1 billion views on YouTube, and we are now the top sponsor for the latest video in the Gymkhana series that should be launching this summer.

Athletes in the world.

Travis is also a number of family members that served in the military and is passionate about serving veterans and their families. Travis has been a good friend of mine and the team of Black Rifle Coffee for a long time and his transition from Red Bull to Black Rifle was a big win for us. The Jim Conif franchise that Travis is a part of has over one billion views on YouTube

<unk> is also a number of family members that served in the military and as passionate about serving veterans and their families travelers has been a good friend of mine and the team of Black Wreckful coffee for a long time and has transitioned from Red Bull to Black rifle was a big win for US the Jim kind of franchise that Travis is a part of has over 1 billion views on Youtube.

<unk>.

And we are now the top sponsor for the latest video in the Gymkhana series that should be launching this summer. Travis' content appeals to both the BRCC community and a broader global audience. And we are excited to bring him on the team and support him in his efforts to create fantastic content and drive our mission of supporting veterans in the process. Another example is BJ Balz.

And we are now the top sponsor for the latest video and the Gymkhana series there should be launching this summer Travis just content appeals to both the BRC community and a broader global audience and we are excited to bring him on the team and support him in his efforts to create fantastic content and drive our mission of supporting veterans in the process. Another example is <unk>.

Evan Hafer: Travis's content appeals to both the BRCC community and a broader global audience, and we are excited to bring him on the team and support him in his efforts to create fantastic content and drive our mission of supporting veterans in the process. Another example is BJ Baldwin, the seven-time desert racing champion and two-time Ironman Baja 1000 champion. BJ's Recoil video series has over 100 million views on YouTube, and we're in the process of filming the latest version of Recoil today. Next, we are expanding our reach within our target demographics. This includes retail partnerships in our key geographical markets. We are proud to announce expanded RTD distribution with Walmart. After a successful pilot program in roughly 400 stores with the two 11-ounce SKUs, Walmart is now expanding the distribution to all four RTD SKUs in over 3,500 stores.

Jay Baldwin the seven time Desert racing champion in two time Iron Man Baja 1000 champion Bj's recoil video series is over 100 million views on Youtube and we're in the process of building. The latest version of recoil. Today next we are expanding our reach within our target demographics. This includes retail partnerships in our key.

The 7-time Desert Racing Champion and 2-time Ironman Baja 1000 Champion, BJ's Recoil video series has over 100 million views on YouTube, and we're in the process of filming the latest version of Recoil today. Next we are expanding our reach within our target demographics. This includes retail partnerships in our key geographical market.

<unk> graphical markets, we are proud to announce expanded RTD distribution with Walmart after a successful pilot program in roughly 400 stores with the 211 ounce Skus Walmart is now expanding the distribution to all four RTD skus and over 3500 stores. We believe this relationship will be effective.

We are proud to announce expanded RTD distribution with Walmart. After a successful pilot program in roughly 400 stores with the two 11 ounce SKUs, Walmart is now expanding the distribution to all four RTD SKUs in over 3,500 stores. We believe this relationship will be effective in expanding our brand into our core communities of BRCC.

Evan Hafer: We believe this relationship will be effective in expanding our brand into our core communities of BRCC customers and will continue to bring a greater awareness to the brand as a premium coffee. We also believe that the success we are seeing with our RTD beverages in grocery gives us the opportunity to expand to other product categories in the future. To wrap up, I want to reiterate how excited the BRCC team is to be on this journey as a public company. The mission of Black Rifle Coffee has never changed. We now have the financial resources to continue to grow our brand, but our ethos is still solely focused on our customer.

And expanding our brand into our core communities of <unk> customers and we will continue to bring greater awareness to the brand as a premium coffee. We also believe that the success, we're seeing with our RTD beverages in grocery gives us the opportunity to expand to other product categories in the future to wrap up I want to reiterate how excited.

and will continue to bring a greater awareness to the brand as a premium coffee. We also believe that the success we are seeing with our RTD beverages and grocery gives us the opportunity to expand to other product categories in the future. To wrap up, I want to reiterate how excited the BRCC team is to be on this journey as a public company. The mission of Black Grif will

The BRC team is to beyond this journey as a public company.

The mission of Blackrock will copy has never changed we now have the financial resources to continue to grow our brand, but our ethos is still solely focused on our customer.

We now have the financial resources to continue to grow our brand, but our ethos is still solely focused on our customers.

Evan Hafer: Everything we do would not be possible without our loyal customers and our community, and we will remain maniacally focused in serving our customers the highest quality product at the best price possible as this journey continues. With that, I'll turn it over to Tom. Go ahead, TD.

Everything we do would not be possible without our loyal customers in our community and we will remain maniacally focused in serving our customers the highest quality product.

Everything we do would not be possible without our loyal customers and our community and we will remain.

Maniacally focused in serving our customers the highest quality product at the best price possible as this journey continues with.

With that, I'll turn it over to Tom. Go ahead, TD. Thanks, Evan, and good morning, everyone. For today's call, I will provide color on our first quarter results, which Greg Iverson will discuss in greater detail, then move to growth initiatives for the quarter and beyond as we attack our significant coffee market opportunity.

With that I'll turn it over to Tom go ahead, TD, Thanks, Kevin and good morning, everyone for today's call I will provide color on our first quarter results, which Greg Iverson will discuss in greater detail then moved to growth initiatives for the quarter and beyond as we attack our significant coffee market opportunity.

Tom Davin: Thanks, Evan, and good morning, everyone. For today's call, I will provide color on our Q1 results, which Greg Iverson will discuss in greater detail. Move to growth initiatives for the quarter and beyond as we attack our significant coffee market opportunity. I'll frame the discussion by reiterating the competitive strengths of the Black Rifle Coffee business model. First, as Evan discussed, we are a mission-driven lifestyle brand with a passionate and loyal customer base. The support for our mission and our premium quality coffee drive exceptional customer retention and affinity for the brand, as evidenced by our category-leading NPS of 78. Second, we have a massive market opportunity. US coffee market is over $45 billion, and we estimate that the Black Rifle Coffee serviceable addressable market is approximately $28 billion.

I'll frame the discussion by reiterating the competitive strengths of the Black Rifle Coffee business model. First, as Evan discussed, we are a mission-driven lifestyle brand with a passionate and loyal customer base.

I'll frame the discussion by reiterating our competitive strengths of the Blackrock for coffee business model first as <unk> discussed we are mission driven lifestyle brand with a passionate and loyal customer base and support for our mission and our premium quality coffee drive exceptional customer retention.

The support for our mission and our premium quality coffee drive exceptional customer retention and affinity for the brand, as evidenced by our category-leading net promoter score of 78. Second, we have a massive market opportunity. US coffee market is over $45 billion, and we estimate that the Black Rifle Coffee serviceable addressable market is approximately $28 billion.

<unk> for the brand as evidenced by our category, leading net promoter score of 78 second we have a massive market opportunity U S coffee margins over $45 billion and we estimate that the black Chronicle coffee serviceable addressable market is approximately $28 billion. This includes.

Tom Davin: This includes over 100 million consumers who are aligned with our brand values. Our current guidance of $315 million in 2022 revenue equates to roughly a 1% share of the serviceable addressable market, so we are positioned for many years of sustained growth. Third, we have a powerful and proven omni-channel strategy to drive our growth. We're a digitally native coffee and merchandise business that enables us to participate in multiple complementary channels, creating branded experiences that deliver community, premium quality, convenience, and value. We achieve all of this across three primary channels: direct-to-consumer, Outposts, and wholesale channels, comprising our unique omni-channel flywheel. Our results for Q1 reflect continued top line growth as we made progress across our three sales channels.

This includes over 100 million consumers who are aligned with our brand value.

Over 100 million consumers, who are aligned with our brand values. Our current guidance of $315 million in 2022 revenue quite so roughly a 1% share of the serviceable addressable market. So we are positioned for many years of sustained growth third we have a powerful improvement.

Our current guidance of $315 million in 2022 revenue equates to roughly a 1% share of the serviceable addressable market, so we are positioned for many years of sustained growth. Third, we have a powerful and proven omni-channel strategy to drive our growth.

Harmony channel strategy to drive our growth.

We're a digitally native coffee and merchandise business that enables us to participate in multiple complementary channels, creating branded experiences that deliver community, premium quality, convenience, and value.

Digitally native coffee and merchandise business that enables us to paint and multiple complementary channels, creating branded experiences deliver community premium quality convenience and value. We achieve all of this across three primary channels direct to consumer output.

We achieve all of this across three primary channels, direct to consumer, outposts, and wholesale channels, comprising our unique omni-channel flywheel. Our results for the first quarter reflect continued top-line growth as we made progress across our three sales channels.

<unk> and wholesale channels, comprising our unique omnichannel flywheel our results for the first quarter reflect continued topline growth as we made progress across our three sales channels.

Tom Davin: Our performance is further proof of the power of our mission, our market opportunity, and the omni-channel model as we continue to expand our consumer touch points across the United States. Our net sales grew by 35% to $65.8 million relative to Q1 2021, driven by substantial growth in our wholesale and Outpost businesses. Taking a look at our individual channels, starting with our direct consumer business, our first quarter results were flat year over year at $38.3 million. This was in line with our expectations, driven by a challenging comp from a year ago, Q1 2021, where most people were still working from home.

Our performance is further proof of the power of our mission, our market opportunity, and the omnichannel models. We continue to expand our consumer touchpoints across the United States. Our net sales grew by 35% to $65.8 million relative to the first quarter of 2021 driven by substantial growth in our wholesale and outpost business.

Our performance is further proof of the power of our mission our market opportunity and the Omnichannel models, we continue to expand our consumer touch points across the United States. Our net sales grew by 35% to $65 $8 million relative to the first quarter of 2021 driven by substantial grew.

Both in our wholesale and outposts businesses, taking a look at our individual channels, starting with our direct consumer business. Our first quarter results were flat year over year at $38 $3 million. This was in line with our expectations driven by challenging comp from a year ago Q1.

Taking a look at our individual channels starting with our direct consumer business Our first quarter results were flat year over year at 38.3 million dollars This was in line with our expectations driven by a challenging comp from a year ago Q1 2021 where most people were still working from home

'twenty, one where most people were still working from home.

Tom Davin: Our Coffee Club subscribers grew 11% to 295,900 from 265,800 in Q1 2021, and grew 3% sequentially from Q4 2021 or 287,000 at year-end last year. We're encouraged by the growth of our Coffee Club subscribers and continue to see a low monthly churn rate of below 4%. Our wholesale segment grew 135% from Q1 2021 and increased 28% sequentially from Q4 2021. You recall this wholesale segment includes our ready-to-drink coffee business, which we are rapidly scaling across the segment with our products now available in more than 47,000 doors or locations at the end of the first quarter.

Our Coffee Club subscribers grew 11% to 295,900 from 265,800 in Q1 2021, and grew 3% sequentially from Q4 2021, or 287,000 at year end last year.

Our coffee club subscribers grew 11% to 295900 from 265800 in Q1 2021 and grew 3% sequentially from Q4, 2021 or 287000 at year end last year.

We're encouraged by the growth of our coffee club subscribers and continue to see a low monthly churn rate of below 4%. Our wholesale segment grew 135% from Q1 2021 and increased 28% sequentially from Q4 2021.

We're encouraged by the growth of our coffee club subscribers and continue to see a low monthly churn rate of below 4%. Our wholesale segment grew 135% from Q1 2021 inch.

Increased 28% sequentially from Q4 of 2021.

You'll recall this wholesale segment includes our ready to drink coffee business, which we are rapidly scaling across the segment, with our products now available in more than 47,000 doors or locations at the end of the first quarter.

And recall this wholesale segment includes our ready to drink coffee business, which we are rapidly scaling across the segment with our products now available in more than 47000 doors or locations at the end of the first quarter. We were building on the momentum in our TD by both expanding our points of distribution and increasing the <unk>.

Tom Davin: We are building on the momentum in RTD by both expanding our points of distribution and increasing the average number of SKUs per door. Third, our Outpost revenue increased 397% from Q1 2021 and 9.8% from Q4 2021. Our Outpost momentum is driven by our continued efforts to enhance our experiential retail execution and capitalize on the significant white space we see for the brand. We ended the quarter with 9 company-owned Outposts after opening 1 company-owned Outpost in Houston, Texas. We're on track to hit our guidance of 15 to 20 new company-owned Outposts in 2022. As we mentioned last quarter, we've decided to enhance the brand experience by shifting our shop development strategy from primarily conversions to ground-up prototype shop builds wherever possible.

Tom Davin: We are building on the momentum in RTD by both expanding our points of distribution and increasing the average number of SKUs per door. Third, our Outpost revenue increased 397% from Q1 2021 and 9.8% from Q4 2021. Our Outpost momentum is driven by our continued efforts to enhance our experiential retail execution and capitalize on the significant white space we see for the brand. We ended the quarter with nine company-owned Outposts after opening one company-owned Outpost in Houston, Texas. We're on track to hit our guidance of 15 to 20 new company-owned Outposts in 2022. As we mentioned last quarter, we've decided to enhance the brand experience by shifting our shop development strategy from primarily conversions to ground-up prototype shop builds wherever possible.

We are building on the momentum in RTD by both expanding our points of distribution and increasing the average number of SKUs per door. Third, our outpost revenue increased 397% from Q1 2021 and 9.8% from Q4 2021. Our outpost momentum is driven by our continued efforts to enhance our experiential retail execution and capitalize on the significant white space we see for the bright.

Average number of Skus per door third our outpost revenue increased 397% from Q1 2021, and nine 8% from Q4 2021, our outposts momentum is driven by our continued efforts to enhance our experiential retail execution and capitalize on.

The significant white space, we see for the brand.

We ended the quarter with nine company-owned outposts after opening one company-owned outpost in Houston, Texas. We're on track to hit our guidance of 15 to 20 new company-owned outposts in 2022.

We ended the quarter with nine company owned outposts after opening one company owned outpost in Houston, Texas. We are on track to hit our guidance of 15 to 20, New company owned outposts in 2022.

As we mentioned last quarter, we've decided to enhance the brand experience by shifting our shop development strategy from primarily conversions to ground-up prototype shop builds wherever possible.

And as we mentioned last quarter, we've decided to enhance the brand experienced by shifting our shop development strategy from primarily conversions to ground up prototype shop builds wherever possible. Although this strategic shift has delayed our pipeline of new shop openings, we made significant progress in Q1.

Tom Davin: Although the strategic shift has delayed our pipeline of new shop openings, we made significant progress in Q1 and are tracking to have 60% of all new locations be our redesigned prototype beginning in Q2 or this quarter right now. At our Outposts, we continue to see a high merch mix across all stores, which includes our bagged coffee, apparel, and drinkware, which is driving an industry-leading in-store check average and average unit volumes, which are among the highest in the coffee and QSR segments. Moving to growth initiatives for Q2 and beyond. We remain focused on our multiple growth vectors to drive long-term value creation. As Evan mentioned earlier, we're making headway in multiple strategic areas. I'll address the key drivers of growth that I highlighted on our Q4 call.

Although the strategic shift has delayed our pipeline of new shop openings, we made significant progress in Q1 and are tracking to have 60% of all new locations be our redesigned prototype beginning in Q2, or this quarter right now.

And are tracking to have 60% of all new locations. We are redesigning prototype beginning in Q2 or this quarter right now.

At our outposts, we continue to see a high-merch mix across all stores, which includes our bagged coffee, apparel, and drinkware, which is driving an industry-leading in-store check average and average unit volumes, which are among the highest in the coffee and QSR segments. Moving to growth initiatives for the second quarter and beyond, we remain focused on our multiple growth vectors to drive long-term value creation.

At our own posts, we continue to see a high merch mix across all stores, which includes our bagged coffee apparel and drink wear which is driving an industry leading in store check average and average unit volumes, which are among the highest in the coffee and <unk> segments moving to growth initiatives for the second.

And beyond we remain focused on our multiple growth vectors to drive long term value creation.

As Evan mentioned earlier, we're making headway in multiple strategic areas.

I'll address the key drivers of growth that I highlighted on our Q4 call.

I'll address the key drivers of growth that are highlighted on our Q4 call.

Tom Davin: First, our ready-to-drink segment continues to perform ahead of our expectations as we have become a top four brand in less than 24 months in this $4 billion category. While Q1 is typically not the time for a convenience store and food, drug, and mass operators to reset their stores, we expanded distribution from over 42,000 doors at the end of 2021 to over 47,000 doors at the end of Q1 2022. We see potential well beyond the 2022 year-end goal of 75,000 doors, given the much larger universe of 375,000 doors across convenience stores, food, drug, and mass accounts. In March, I outlined that ready-to-drink capacity commitments coming into 2022 gave us the confidence we would achieve our committed revenue targets, but it did not allow us to fully meet the accelerating demand for our products.

First, our ready to drink segment continues to perform ahead of our expectations as we have become a top four brand in less than 24 months in this $4 billion category.

First our ready to drink segment continues to perform ahead of our expectations and as we become a top four brand in less than 24 months in this $4 billion category.

While Q1 is typically not the time for a convenience store and food, drug, and mass operators to reset their stores, we expanded distribution from over 42,000 doors.

While Q1 is typically not the time for convenience store in food drug and mass operators have reset their stores, we expanded distribution from over 42000 doors at the end of 2021 to over 47000 doors at the end of Q1 2022.

at the end of 2021 to over 47,000 doors at the end of Q1 2022.

We see potential well beyond the 2022 year-end goal of 75,000 doors, given the much larger universe of 375,000 doors across convenience stores, food, drug, and mass.

We see potential well beyond the 2022 year end goal of 75000 doors, given the much larger universe of three.

375000 doors across convenience stores food drug and mass accounts.

In March, I outlined that ready-to-drink capacity commitments coming into 2022 gave us the confidence we would achieve our committed revenue targets, but it did not allow us to fully meet the accelerating demand for our product.

In March I outlined the ready to drink capacity commitments coming into 2022 gave us the confidence we would achieve our committed revenue targets, but it did not allow us to fully meet the accelerating demand for our products.

Tom Davin: Throughout Q1, we often had to slow the onboarding of new RTD accounts because we simply couldn't meet the demand from new customers as well as the increased demand from our existing customers. We now have completed agreements with two additional co-manufacturers for RTD that enable us to more fully address product demand that is currently unmet, giving us increased optionality to further expand distribution and increase our average SKU per door. We'll see the benefits of this additional co-manufacturing capacity in H2. According to national rankings by the Nielsen organization, all four of our SKUs, the two 11-ounce and two 15-ounce SKUs, rank in the top 25 across all channels. Double-clicking on our primary channel, convenience stores, the story is even more remarkable.

Throughout Q1, we often had to slow the onboarding of new RTD accounts because we simply couldn't meet the demand from new customers as well as the increased demand from our existing customers.

Throughout Q1, we often had to slow the onboarding of new RTD accounts.

Because we simply couldn't meet the demand from new customers as well as the increased demand from our existing customers.

We now have completed agreements with two additional co-manufacturers for RTD that enable us to more fully address product demand that is currently unmet, giving us increased optionality to further expand distribution and increase our average SKU per door.

We now have completed agreements with two additional co manufacturers for RTD that enable us to more fully address product demand is currently unmet, giving us increased optionality to further expand distribution and increase our average SKU per door.

We'll see the benefits of this additional co-manufacturing capacity in the second half of the year.

We'll see the benefits of this additional co manufacturing capacity in the second half of the year.

According to national rankings by the Nielsen organization, all four of our SKUs, the two 11-ounce and two 15-ounce SKUs, rank in the top 25 across all channels.

According to national rankings by the Nielsen organization.

All four of our end Skus, the 211 ounce and $2 15 ounce skus rank in the top 25 across all channels double clicking on our primary channel convenience stores. The story is even more remarkable one excludes private label all four of our Skus ranked number 18.

Double clicking on our primary channel, convenience stores, the story is even more remarkable.

Tom Davin: If one excludes private label, all four of our SKUs rank number 18 or higher, making Black Rifle Coffee Company RTD one of only three brands with four or more SKUs in the top 18. In the food, drug, and mass channel, we continue to have success in gaining new ready-to-drink doors and exceeding our volume per outlet or sell-through targets. This success has led a number of these FDM accounts to inquire about a broader relationship that would include the sale of bagged coffee and K-Cup or what we call rounds. While this possibility has not been part of our model to date, we are now beginning to devote planning resources to this possible growth area.

one excludes private label, all four of our SKUs rank number 18 or higher, making Black Rifle Coffee Company RTD one of only three brands with four or more SKUs in the top 18.

Or higher making black <unk> coffee company RTD, one of only three brands with four or more skus and the top 18.

In the food, drug, and mass channel, we continue to have success in gaining new ready-to-drink doors and exceeding our volume per outlet or sell-through target.

In the food drug and mass channel, we continue to have success in gaining new ready to drink doors and exceeding our volume per outlet or sell through targets. This success led a number of these fdny counts to enquire about a broader relationship that would include the sale of bagged coffee and K Cups.

This success led a number of these FDM accounts to inquire about a broader relationship that would include the sale of bagged coffee and K-cups, or what we call rounds.

What we call round, although its possibility has not been part of our model to date. We are now beginning to devote planning resources to this possible growth area.

While this possibility has not been part of our model to date, we are now beginning to devote planning resources to this possible growth area.

Tom Davin: Regarding coffee roasting capacity, similarly, we came into the year with enough owned coffee roasting capacity to achieve our committed revenue targets, but we lack the ability to ramp up quickly if demand were to materialize. We're addressing this constraint by continuing to invest in our coffee roasting facility in Manchester, Tennessee, just south of Nashville, where we are finalizing plans for a multiyear $30 million CapEx program that will increase capacity and further automate roasting and packaging operations. Once complete, our Manchester facility will have the ability to roast over $1 billion in value of bagged coffee measured in terms of revenue, all while enhancing the work environment for our team. In addition to the Manchester facility, we are evaluating additional capacity options, both via new investments as well as possible outsourced roasting capacity so that we are positioned to respond to new opportunities as they develop.

Regarding coffee roasting capacity, similarly, we came into the year with enough own coffee roasting capacity to achieve our committed revenue targets, but we lack the ability to ramp up quickly if demand were to materialize.

Regarding coffee roasting capacity. Similarly, we came into the year with enough owned coffee roasting capacity to achieve our committed revenue targets, but we lack the ability to ramp up quickly if demand were to materialize.

We're addressing this constraint by continuing to invest in our coffee roasting facility in Manchester, Tennessee, just south of Nashville.

We're addressing this constrained by continuing to invest in our coffee roasting facility in Manchester, Tennessee, just south of Nashville, where we are finalizing plans for a multi year $30 million Capex program that will increase capacity and further automate roasting and packaging operations.

where we are finalizing plans for a multi-year, $30 million CAPEX program that will increase capacity and further automate roasting and packaging operations. Once complete, our Manchester facility will have the ability to roast over $1 billion in value of bagged coffee measured in terms of revenue, all while enhancing the work environment for our team.

Once complete our Manchester facility will have the ability to roast over $1 billion and value of bagged coffee measured in terms of revenue all while enhancing the work environment for our team.

In addition to the Manchester facility, we are evaluating additional capacity options.

In addition to the Manchester facility, we are evaluating additional capacity auctions, both via new investments as well as possible outsource roasting capacity. So that we are positioned to respond to new opportunities as they develop second with the hiring of heat Nielsen we've added additional leadership firepower to enhance our.

both via new investments as well as possible outsourced roasting capacity so that we are positioned to respond to new opportunities as they develop. Second, with the hiring of Heath Nielsen, we've added additional leadership firepower to enhance our experiential retail strategy.

Tom Davin: Second, with the hiring of Heath Nielsen, we've added additional leadership firepower to enhance our experiential retail strategy. While our initial Outpost rollout has been a success, we've identified several areas for improvement as we continue to scale this business. We see a major opportunity to innovate around beverage and our food menu. We are highly aware of the fact that most major coffee brands have 70% to 80% of their beverage mix coming from cold beverages. Today, ours is roughly 40% cold beverages relative to the total mix. We'll roll out a new cold beverage menu this quarter, Q2, and we have an exciting innovation pipeline in the works. Further, we are in the process of revamping our food menu with the twin objectives of providing better quality for our guests while enhancing product margins.

Our experiential retail strategy, while our initial outpost rollout has been a success we've identified several areas for improvement as we continue to scale this business.

While our initial outpost rollout has been a success, we've identified several areas for improvement as we continue to scale this business.

We see a major opportunity to innovate around beverage and our food menu. We are highly aware of the fact that most major coffee brands have 70% to 80% of their beverage mix coming from cold beverage.

We see a major opportunity to innovate around beverage and our food menu we.

We are highly aware of the fact that most major coffee brands.

70% to 80% of their beverage mix coming from cold beverages today ours is roughly 40% cold beverages relative to total mix, we will roll out a new cold beverage menu. This quarter Q2, and we have an exciting innovation pipeline in the works further we are in the process of.

Today, ours is roughly 40% cold beverages relative to the total.

We'll roll out a new cold beverage menu this quarter, Q2, and we have an exciting innovation pipeline in the works. Further, we are in the process of revamping our food menu with the twin objectives of providing better quality for our guests while enhancing product margins. In Q1 2022, we opened one new company-owned outpost in Houston, Texas, and one franchise store in Woodstock, Georgia.

<unk>, our food menu with the twin objectives of providing better quality for our guests while enhancing product margins. In Q1 2022, we opened one new company owned outpost in Houston, Texas, and one franchise store in Woodstock, Georgia.

Tom Davin: In Q1 2022, we opened 1 new company-owned Outpost in Houston, Texas, and 1 franchise store in Woodstock, Georgia. This brings our total Outpost count to 18, 9 of which are company-owned, 9 of which are franchised. Finally, I'd like to address inflation. We continue to experience inflationary pressures throughout the business, including the price of green coffee and parcel shipping costs. We anticipate additional cost pressures throughout the year given the current macroeconomic environment. We're addressing this challenge in two ways. First, we've been working with a leading international operational consulting firm on a range of productivity projects in order to become more efficient and enhance our margins. Second, we've already taken pricing in several areas, including core coffee products, direct-to-consumer shipping charges, and drink pricing at our Outposts. Ready-to-drink coffee pricing will go into effect in June.

Tom Davin: In Q1 2022, we opened one new company-owned Outpost in Houston, Texas, and one franchise store in Woodstock, Georgia. This brings our total Outpost count to 18, nine of which are company-owned, nine of which are franchised. Finally, I'd like to address inflation. We continue to experience inflationary pressures throughout the business, including the price of green coffee and parcel shipping costs. We anticipate additional cost pressures throughout the year given the current macroeconomic environment. We're addressing this challenge in two ways. First, we've been working with a leading international operational consulting firm on a range of productivity projects in order to become more efficient and enhance our margins. Second, we've already taken pricing in several areas, including core coffee products, direct-to-consumer shipping charges, and drink pricing at our Outposts. Ready-to-drink coffee pricing will go into effect in June.

This brings our total outpost count to 18, nine of which are company owned, nine of which are franchised. Finally, I'd like to address inflation. We continue to experience inflationary pressures throughout the business, including the price of green coffee and parcel shipping costs.

This brings our total outpost count to 18 nine of which are company owned none of which are franchised finally, I'd like to address inflation, we continue to experience inflationary pressures throughout the business, including the price of Green coffee and parcel shipping costs, we anticipate additional cost pressures throughout the year.

We anticipate additional cost pressures throughout the year, given the current macroeconomic environment. We're addressing this

Given the current macroeconomic environment.

We are addressing this challenge in two ways first we have been working with a leading international operational consulting firm on a range of productivity projects in order to become more efficient and enhance our margins.

First, we've been working with a leading international operational consulting firm on a range of productivity projects in order to become more efficient and enhance our market.

Second, we've already taken pricing in several areas, including core coffee products, direct consumer shipping charges, and drink pricing at our output.

We've already taken pricing in several areas, including core coffee products direct to consumer shipping charges and drink pricing at our outflows.

ready-to-drink coffee pricing will go into effect in June . We are evaluating additional pricing actions across our portfolio, as thus far, our productivity initiatives and pricing actions have lagged our inflation in coffee.

Ready to drink coffee pricing will go into effect in June .

Tom Davin: We are evaluating additional pricing actions across our portfolio as thus far, our productivity initiatives and pricing actions have lagged our inflation and costs. We believe additional pricing actions are appropriate given our premium brand positioning. In conclusion, you can see we've made tremendous progress on a number of fronts that will help us continue on our multi-decade growth strategy powered by our omni-channel flywheel model. Let me now hand it over to Greg Iverson to discuss our Q1 financial performance in greater detail.

We are evaluating additional pricing actions across our portfolio as thus far our productivity initiatives and pricing actions have lagged our inflation costs. We believe additional pricing actions are appropriate given our premium brand positioning in conclusion, you can see we've made tremendous <unk>.

We believe additional pricing actions are appropriate, given our premium brand positioning. In conclusion, you can see we've made tremendous progress on a number of fronts that will help us continue on our multi-decade growth strategy powered by our omni-channel flywheel model.

<unk> on a number of fronts that will help us continue on our multi decade growth strategy powered by our Omnichannel flywheel model let.

Let me now hand it over to Greg Iverson to discuss our Q1 financial performance in greater detail.

Let me now hand, it over to Greg Iverson to discuss our Q1 financial performance in greater detail. Thanks, Tom and good morning, everyone today.

Greg Iverson: Thanks, Tom, and good morning, everyone. Today, I will discuss our 2022 Q1 results and walk quickly through our balance sheet following our SPAC merger, give some additional details on our share count, and comment on current outlook for 2022. Turning first to our financial results, we are pleased to have continued our impressive growth trajectory and delivered solid results in the Q1. For the Q1, total revenue increased 35% to $65.8 million, compared to $48.7 million in Q1 of last year. The meaningful increase in revenue was driven by our wholesale and Outpost channels, which continued their impressive growth from 2021 by 135% and 397% respectively. Now I will give some additional details on our three sales channels.

Thanks, Tom, and good morning everyone. Today I will discuss our 2022 first quarter results and walk quickly through our balance sheet following our SPAC merger, give some additional details on our share count, and comment on current outlook for 2022.

Today, I will discuss our 2022 first quarter results and walk quickly through our balance sheet. Following our spec merger give some additional details on our share count and comment on current outlook for 2022.

Turning first to our financial results, we are pleased to have continued our impressive growth trajectory and delivered solid results in the first quarter.

Turning first to our financial results. We are pleased to have continued our impressive growth trajectory and delivered solid results in the first quarter for.

For the first quarter, total revenue increased 35% to $65.8 million compared to $48.7 million in Q1 of last year.

For the first quarter total revenue increased 35% to $65 8 million compared to $48 7 million in Q1 of last year.

The meaningful increase in revenue was driven by our wholesale and outpost channels, which continued their impressive growth from 2021 by 135% and 397% respectively.

The meaningful increase in revenue was driven by our wholesale an outpost channels, which continued their impressive growth from 2021 by 135% and 397% respectively.

Now I will give some additional details on our three sales channels.

Greg Iverson: First, our direct-to-consumer revenue was $38.3 million in both Q1 of 2022 and 2021. As a reminder, in Q1 2022, we are comping against a prior year period with unprecedented consumer demand. For reference, the year-over-year growth from Q1 2020 to Q1 2021 was over 66%. Importantly, while D2C revenue was flat for the quarter, our subscriber base grew 11% in the first quarter to 295,900 versus the prior year period. Turning to our wholesale channel, revenue increased 135% to $22 million in Q1 compared to $9.4 million during Q1 of last year. The increase was primarily driven by growth in our RTD product and expanding wholesale partnerships.

First, our direct consumer revenue was $38.3 million in both Q1 of 2022 and 2021.

First our direct to consumer revenue was $38 $3 million in both Q1 of 2022 and 2021 as a reminder, in Q1 2022, we are comping against a prior year period with unprecedented consumer demand for reference the year over year growth from Q1 2022.

As a reminder, in Q1 2022, we are comping against a prior year period with unprecedented consumer demand. For reference, the year-over-year growth from Q1 2020 to Q1 2021 was over 66%.

Q1, 2021 was over 66%.

Importantly, while D2C revenue was flat for the quarter, our subscriber base grew 11% in the first quarter to 295,900 versus the prior year period.

Importantly, while DTC revenue was flat for the quarter, our subscriber base grew 11% in the first quarter to 295900 versus the prior year period.

Turning to our wholesale channel revenue increased 135% to $22 million in Q1 compared to $9 4 million during Q1 of last year.

Turning to our wholesale channel, revenue increased 135% to 22 million in Q1 compared to 9.4 million during Q1 of last year.

The increase was primarily driven by growth in our RTD product and expanding wholesale partners.

The increase was primarily driven by growth in our RTD product and expanding wholesale partnerships.

Greg Iverson: Our RTD product can now be found in over 47,000 doors, and all four of our SKUs continue to be ranked in the top 25 in both C-store and grocery, drug, and mass. As we continue to penetrate the overall RTD market, our supply chain team has worked tirelessly throughout the quarter to continue to find co-manufacturing capacity. We locked down two new co-manufacturers for our RTD product, more than doubling our capacity. We are working to get the new capacity online as quickly as possible given the demand, and we look forward to providing you updates on our progress on future calls. We expect some of this capacity to come online later this year. Moving to our Outpost channel, revenue increased 397% to $5.5 million in Q1 compared to $1.1 million last year.

Our RTD product can now be found in over 47,000 doors, and all four of our SKUs continue to be ranked in the top 25 in both C-Store and Grocery, Drug, and Mass.

Our RTD product can now be found in over 47000 doors and all four of our Skus continued to be ranked in the top 25 in both C store and grocery drug and mass.

As we continue to penetrate the overall RTD market, our supply chain team has worked tirelessly throughout the quarter to continue to find co-manufacturing capacity.

As we continue to penetrate the overall RTD market our supply chain team has worked tirelessly throughout the quarter to continue to find co manufacturing capacity.

We locked down two new co-manufacturers for our RTD product, more than doubling our capacity.

We locked down to new co manufacturers for RTD product more than doubling our capacity we are working to get the new capacity online as quickly as possible given the demand and we look forward to providing you updates on our progress on future calls.

We are working to get the new capacity online as quickly as possible, given the demand, and we look forward to providing you updates on our progress on future calls.

We expect some of this capacity to come online later this year.

Moving to our outpost channel, revenue increased 397% to $5.5 million in Q1 compared to $1.1 million last year.

Moving to our outpost channel revenue increased 397% to $5 5 million in Q1 compared to $1 1 million last year.

Greg Iverson: The main driver was an increase in our company-owned store count, which increased to 9 Outposts as of Q1 2022 compared to 1 in Q1 2021. While we have started to see inflationary pressures on our Outpost building costs, we are still confident in our earlier assumptions on AUVs and have seen our newly built stores continue at the same $2.5 million run rate we've discussed previously. We are also mitigating some of these cost pressures from a market planning perspective as we look to build multiple Outposts in our target markets. We also expect this Outpost market focus will allow us to drive marketing efficiencies in the future. Overall, we have continued to see our omni-channel flywheel approach working throughout each revenue channel.

The main driver was an increase in our company-owned store count, which increased to nine outposts as of Q1 2022 compared to one in Q1 2021.

The main driver was an increase in our company owned store count, which increased to nine outposts as of Q1 2022 compared to one in Q1 2021.

While we have started to see inflationary pressures on our outpost building costs, we are still confident in our earlier assumptions on AUVs and have seen our newly built stores continue at the same 2.5 million run rate we've discussed previously.

While we have started to see inflationary pressures on our outposts building costs. We are still confident in our earlier assumptions on <unk> and have seen our newly built stores continue at the same $2 5 million run rate we've discussed previously.

We are also mitigating some of these cost pressures from a market planning perspective as we look to build multiple outposts in our target market.

We are also mitigating some of these cost pressures from a market planning perspective, as we look to build multiple outposts in our target markets.

We also expect this outpost market focus will allow us to drive marketing efficiencies in the future. Overall, we have continued to see our omni-channel flywheel approach working throughout each revenue channel. We have continued to see upticks in D2C subscribers within a short radius of our newly opened outposts, and our increased distribution of RTD products has continued to bring new customers into the BRCC ecosystem.

We also expect this outpost market focus will allow us to drive marketing efficiencies in the future. Overall, we have continued to see our omnichannel flywheel approach working throughout each revenue channel. We have continued to see upticks in DTC subscribers within a short radius of our newly opened outposts and our increased distribution of <unk>.

Greg Iverson: We have continued to see upticks in D2C subscribers within a short radius of our newly opened Outposts, and our increased distribution of RTD products has continued to bring new customers into the BRCC ecosystem. As we continue our explosive growth, we have heavily invested in our senior leadership across all functions of the business, and by solving for other major constraints of capital and capacity, we are extremely confident in our ability to execute and continue to drive growth. Turning to profitability, our Q1 gross margin was 35.2%, decreasing 488 basis points from 40.1% in Q1 of last year. The decrease was driven by increases in the cost of coffee and RTD, as well as a continued shift in our product mix as our RTD has a higher product cost and a lower gross margin as compared to coffee.

<unk> products has continued to bring new customers into the BRC ecosystem.

As we continue our explosive growth, we have heavily invested in our senior leadership across all functions of the business, and by solving for other major constraints of capital and capacity, we are extremely confident in our ability to execute and continue to drive growth.

As we continue our explosive growth we have heavily invested in our senior leadership across all functions of the business and by solving for other major constraints of capital and capacity. We are extremely confident in our ability to execute and continue to drive growth.

Turning to profitability, our Q1 gross margin was 35.2%, decreasing 488 basis points from 40.1 in Q1 of last year.

Turning to profitability. Our Q1 gross margin was 35, 2% decreasing 488 basis points from 41 in Q1 of last year.

The decrease was driven by increases in the cost of coffee and RTD, as well as a continued shift in our product mix, as our RTD has a higher product cost and a lower gross margin as compared to coffee.

The decrease was driven by increases in the cost of coffee and RTD as well as the continued shift in our product mix as our RTD has a higher product cost and a lower gross margin as compared to coffee.

Greg Iverson: Our wholesale business now accounts for 33% of total revenues versus 19% in Q1 of 2021. In addition, elevated shipping rates on small parcel shipments have continued to drive a lower gross margin. However, the increased shipping rates were partially offset by our productivity initiative to migrate our shipping to multiple carriers. As I mentioned on the last update, we have been taking action across all areas of the business to combat the rising costs that we and all food and beverage companies are seeing. We've taken pricing across our non-subscriber D2C channel, as well as our Outposts, and wholesale channels. There is an obvious lag in seeing the benefits of these initiatives, which we have recently begun implementing.

Our wholesale business now accounts for 33% of total revenues versus 19% in Q1 of 2021.

In addition, elevated shipping rates on small parcel shipments have continued to drive a lower gross margin. However, the increased shipping rates were partially offset by our productivity initiative to migrate our shipping to multiple carriers. As I mentioned on the last update, we have been taking action across all areas of the business to combat the rising costs that we and all food and beverage companies are seeing.

In addition, elevated shipping rates on small parcel shipments have continued to drive a lower gross margin. However, the increased shipping rates were partially offset by our productivity initiatives to migrate our shipping to multiple carriers as I mentioned on the last update we have been taking action across all areas of the business.

To combat the rising costs that we and all food and beverage companies are seeing we've taken pricing across our non subscriber D to C channel as well as our outposts and wholesale channels. There is an obvious lag in seeing the benefits of these initiatives, which we have recently begun implementing.

We've taken pricing across our non-subscriber D2C channel, as well as our outposts and wholesale channels. There is an obvious lag in seeing the benefits of these initiatives, which we have recently begun implementing.

Greg Iverson: We should begin seeing the impact of the productivity initiatives and price increases rolling through the P&L with a modest impact in Q2 and improving sequentially throughout the year. Our operating expenses during Q1 increased by approximately 103% to $38.9 million as compared to $19.2 million last year. I will quickly walk through the drivers of these increases, beginning with marketing and advertising. For the first quarter of 2022, marketing expenses increased 24% to $8.2 million from $6.6 million in the first quarter of 2021. As a percentage of sales, marketing decreased by approximately 107 basis points to 12.4% compared to the same quarter last year.

So we should begin seeing the impact of the productivity initiatives and price increases rolling through the P&L with a modest impact in Q2 and improving sequentially throughout the year. Our operating expenses during Q1 increased by approximately 103 percent to $38.9 million as compared to $19.2 million last year.

So we should begin seeing the impact of the productivity initiatives and price increases rolling through the P&L with a modest impact in Q2 and improving sequentially throughout the year. Our operating expenses during Q1 increased by approximately 103% to $38 9 million as compared to $19 $2 million last year.

I will quickly walk through the drivers of these increases, beginning with marketing and advertising. For the first quarter of 2022, marketing expenses increased 24% to $8.2 million from $6.6 million in the first quarter of 2021.

I will quickly walk through the drivers of these increases beginning with marketing and advertising for the first quarter of 'twenty to marketing expenses increased 24% to $8 2 million from $6 6 million in the first quarter of 2021.

As a percentage of sales, marketing decreased by approximately 107 basis points to 12.4% compared to the same quarter last year.

As a percentage of sales marketing decreased by approximately 107 basis points to 12, 4% compared to the same quarter last year.

Greg Iverson: The increase in expense was driven by focused investment in our brand partnerships to strengthen our brand awareness, partially offset by more targeted ad spend. Salaries, wages, and benefits increased 106% to $16 million from $7.8 million in Q1 of 2021. As a percentage of revenue, they increased by approximately 840 basis points to 24% compared to 16% last year. The increase was primarily driven by increased employee headcount to support our significant sales growth, as well as $1.9 million of increased equity-based compensation, which mostly resulted from the completion of our SPAC merger. We have added 708 employees since Q1 of 2021, with 438 of these employees working at our outposts.

The increase in expense was driven by focused investment in our brand partnerships to strengthen our brand awareness, partially offset by more targeted ad spend. Salaries, wages, and benefits increased 106% to $16 million from $7.8 million in the first quarter of 2021.

The increase in expense was driven by focused investment in our brand partnerships to strengthen our brand awareness, partially offset by more targeted AD spend salaries wages and benefits increased 106% to $16 million from $7 8 million in the first quarter of 2021.

As a percentage of revenue, they increased by approximately 840 basis points to 24 percent compared to 16 percent last year.

As a percentage of revenue they increased by approximately 840 basis points to 24% compared to 16% last year.

The increase was primarily driven by increased employee headcount to support our significant sales growth as well as $1.9 million of increased equity-based compensation, which mostly resulted from the completion of our SPAC merger.

The increase was primarily driven by increased employee head count to support our significant sales growth as well as $1 9 million of increased equity based compensation, which mostly resulted from the completion of our spec merger.

We have added 708 employees since Q1 of 2021 with 438 of these employees working at our out.

We have added 708 employees since Q1 of 2021 with 438 of these employees working at our outposts.

Greg Iverson: As part of this growth, we've invested heavily in building out our leadership team, as Tom mentioned earlier. We've also invested in key positions to support the growth of our wholesale and Outpost channels. Additionally, as I mentioned last quarter, a large portion of our Outpost cost structure is included in the salaries, wages, and benefits line, as we typically bring on 35 to 40 new employees for each Outpost opening. As we continue to build our Outpost business, you will continue to see growth in salaries, wages, and benefits. Moving on to G&A. G&A expenses increased $10 million or 208% to $14.9 million compared to $4.8 million in Q1 2021.

As part of this growth, we've invested heavily in building out our leadership team, as Tom mentioned earlier.

As part of this growth we've invested heavily in building out our leadership team as Tom mentioned earlier.

We've also invested in key positions to support the growth of our wholesale and outpost channels. Additionally, as I mentioned last quarter, a large portion of our outpost cost structure is included in the salaries, wages, and benefits line, as we typically bring on 35 to 40 new employees for each outpost open.

We've also invested in key positions to support the growth of our wholesale an outpost channels. Additionally, as I mentioned last quarter, a large portion of our outpost cost structure is included in the salaries wages and benefits line as we typically bring on 35 to 40, new employees for each outpost openings.

As we continue to build our outpost business, you will continue to see growth in salaries, wages, and benefits. Moving on to G&A, G&A expenses increased 10 million, or 208%, to 14.9 million, compared to 4.8 million in the first quarter of 2021.

As we continue to build our outpost business you will continue to see growth in salaries wages and benefits moving on to G&A, G&A expenses increased $10 million or 208% to $14 9 million compared to $4 8 million in the first quarter of 2021.

Greg Iverson: As a percentage of revenue, G&A increased by approximately 1,240 basis points to 22.3% of revenue compared to 9.9% last year. This increase was primarily driven by increased consulting and other professional services needed to support the explosive growth of our business across multiple sales channels and the transition to operating as a public company. Approximately $3.6 million of this increase in Q1 were fees paid to an internationally recognized consulting firm to support the planning and execution of our growth and productivity strategic initiatives. We also had 9 company-owned Outposts in 2022 versus 1 in 2021, and the incremental lease and other occupancy costs for these Outposts also contributed to the increase.

Greg Iverson: As a percentage of revenue, G&A increased by approximately 1,240 basis points to 22.3% of revenue compared to 9.9% last year. This increase was primarily driven by increased consulting and other professional services needed to support the explosive growth of our business across multiple sales channels and the transition to operating as a public company. Approximately $3.6 million of this increase in Q1 were fees paid to an internationally recognized consulting firm to support the planning and execution of our growth and productivity strategic initiatives. We also had nine company-owned Outposts in 2022 versus one in 2021, and the incremental lease and other occupancy costs for these Outposts also contributed to the increase.

As a percentage of revenue, G&A increased by approximately 1,240 basis points to 22.3% of revenue compared to 9.9% last year.

As a percentage of revenue G&A increased by approximately 1240 basis points to 22, 3% of revenue compared to nine 9% last year.

This increase was primarily driven by increased consulting and other professional services needed to support the explosive growth of our business across multiple sales channels and the transition to operating as a public company.

Approximately $3.6 million of this increase in Q1 were fees paid to an internationally recognized consulting firm to support the planning and execution of our growth and productivity strategic initiative.

Approximately $3 6 million of this increase in Q1 were fees paid to an internationally recognized consulting firm to support the planning and execution of our growth and productivity strategic initiatives.

We also had nine company-owned outposts in 2022 versus one in 2021, and the incremental lease and other occupancy costs for these outposts also contributed to the increase.

We also had nine company owned outposts in 2022 versus one and 2021 and the incremental lease and other occupancy cost for these outposts also contributed to the increase.

Greg Iverson: In addition to the GAAP measures I've discussed, adjusted EBITDA is an important profitability measure that we use internally to manage our business. For Q1 2022, adjusted EBITDA was a loss of $6.8 million versus $2.3 million a year ago. This decrease was primarily due to the increased operating expenses I have discussed. Now I will briefly walk through our balance sheet for Q1 2022. Our balance sheet remains strong with over $110 million of cash and cash equivalents. As of Q1 2022, following our SPAC merger, we were required to recognize liabilities on our balance sheet related to the fair value of our earn-out, warrants, and derivative liabilities. We also recognized significant non-cash losses in our P&L from the change in fair value of these items.

In addition to the GAAP measures I've discussed, adjusted EBITDA is an important profitability measure that we use internally to manage our business.

In addition to the GAAP measures I've discussed adjusted EBITDA is an important profitability measure that we use internally to manage our business.

For the first quarter of 2022, adjusted EBITDA was a loss of 6.8 million versus 2.3 million a year ago.

For the first quarter of 2022, adjusted EBITDA was a loss of $6 8 million versus $2 3 million a year ago.

This decrease was primarily due to the increased operating expenses I've discussed.

This decrease was primarily due to the increased operating expenses I have discussed.

Now I will briefly walk through our balance sheet for the first quarter of 2022.

Now I'll briefly walk through our balance sheet for the first quarter of 2022.

Our balance sheet remains strong with over $110 million of cash and cash equivalent.

Our balance sheet remains strong with over $110 million of cash and cash equivalents.

As of Q1 2022, following our SPAC merger, we were required to recognize liabilities on our balance sheet related to the fair value of our earn-out, warrants, and derivative liability.

As of Q1 2022, following our spec merger, we were required to recognize liabilities on our balance sheet related to the fair value of our earn out warrant and derivative liabilities. We also recognized significant noncash losses in our P&L from the change in fair value of these items.

We also recognize significant non-cash losses in our P&L from the change in fair value of these items.

Greg Iverson: With the large movement in our stock in Q1, the change in fair value was material. Because each of these liability items has been settled in shares as of today, these items will be classified as equity rather than liabilities on our balance sheet beginning in Q2 and will not be affecting the P&L after Q2 or causing variability in our outstanding share count. We've included a supplemental table in our earnings release to help clarify our share count related to these items. Turning now to our 2022 financial outlook. We are reaffirming our revenue outlook of $315 million. Moving to profitability, we mentioned earlier that our productivity and pricing initiatives are lagging the effects of rapid inflation. With this, we expect our Q2 gross margin and adjusted EBITDA to be similar to that of Q1, with sequential improvements in H2.

With the large movement in our stock in Q1, the change in fair value was material.

Because each of these liability items has been settled in shares as of today, these items will be classified as equity rather than liabilities on our balance sheet beginning in Q2 and will not be affecting the P&L after Q2 or causing variability in our outstanding share count.

Each of these liability items has been settled in shares as of today. These items will be classified as equity rather than liabilities on our balance sheet beginning in Q2 and will not be affecting the P&L. After Q2 are causing variability in our outstanding share count.

We've included a supplemental table in our earnings release to help clarify our share account related to these items. Turning now to our 2022 financial outlook, we are reaffirming our revenue outlook of $315 million.

We have included a supplemental table in our earnings release to help clarify our share count related to these items turning now to our 2022 financial outlook, we are reaffirming our revenue outlook of $315 million.

Moving to profitability, we mentioned earlier that our productivity and pricing initiatives are lagging the effects of rapid inflation.

Moving to profitability, we mentioned earlier that our productivity and pricing initiatives are lagging the effects of rapid inflation with this we expect our Q2 gross margin and adjusted EBITDA to be similar to that of Q1 with sequential improvements in the back half of the year.

With this, we expect our Q2 gross margin and adjusted EBIDA to be similar to that of Q1 with sequential improvements in the back half of the year.

Evan Hafer: While we continue to experience significant inflationary pressures through our productivity and pricing initiatives, we are still targeting being adjusted EBITDA positive in 2022. Lastly, we previously guided to opening 15 to 20 new company-owned Outposts in 2022. We are still in that range, although expecting to be closer to 15 than 20 as our retail team ensures we are opening Outposts in great locations with excellent return metrics. With that, I will turn the call over to the operator for questions.

Evan Hafer: While we continue to experience significant inflationary pressures through our productivity and pricing initiatives, we are still targeting being Adjusted EBITDA positive in 2022. Lastly, we previously guided to opening 15 to 20 new company-owned Outposts in 2022. We are still in that range, although expecting to be closer to 15 than 20 as our retail team ensures we are opening Outposts in great locations with excellent return metrics. With that, I will turn the call over to the operator for questions.

While we continue to experience significant inflationary pressures through our productivity and pricing initiatives, we are still targeting being adjusted EBITDA positive in 2022.

Lastly, we previously guided to opening 15-20 new company-owned outposts in 2022. We are still in that range, although expecting to be closer to 15-20 as our retail team ensures we are opening outposts in great locations with excellent return metrics. With that, I will turn the call

Lastly, we previously guided to opening 15 to 20, New company owned outpost in 2022, we are still in that range, although expecting to be closer to 15% in 'twenty as our retail team ensures we are opening outposts in great locations with excellent return metrics.

With that I will turn the call over to the operator for questions.

Operator: Thank you. We will now be conducting the question and answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. We ask that you please limit yourself to one question and one follow-up question. One moment, please, while we poll for your questions. Our first question has come through the line of Sharon Zackfia with William Blair. Please proceed with your questions.

Thank you. We will now be conducting the question and answer session. If you would like to ask a question, please press star one on your telephone p-pad. A confirmation total will indicate your line is in the question queue. You may press star two.

Thank you we will now be conducting a question and answer session I would like to ask a question. Please press star one on your telephone keypad.

Our corporations will indicate your line is in the question queue.

You May press Star two if you would like to remove your question from the queue.

For participants using speaker equipment, it may be necessary to pick up your handset before pressing the start.

For participants using speaker equipment may be necessary to pick up your handset before pressing the star keys.

We ask that you please limit yourself to 1 question and 1 follow up question. One moment, please while we.

We ask that you please limit yourself to one question and one follow up question. One moment. Please while we poll for your questions.

Our first question is coming from Nevada, Sharon Zackfia with William Blair. Please proceed with your questions.

Our first questions come through the line of Sharon Zephia with William Blair. Please proceed with your question.

Sharon Zackfia: Hi, good morning. I guess a question on the reiteration of the positive EBITDA for the year. I mean, clearly, you guys have a lot of demand for the brand, and you're putting a lot of effort towards being able to satisfy that demand. I guess I'm just wondering, you know, why the push towards positive EBITDA when there's a lot of investments here to be made? I mean, it is a little bit tough to get to the positive EBITDA kind of in the H2 of the year. You need to have a pretty big stairstep. Can you help us think through kind of what changes dramatically in the H2 versus the H1?

Hi, Good morning, I guess a question on the reiteration of the positive EBITDA for the year I mean, clearly you guys have a lot of demand for the brand and you're putting a lot of effort toward.

Hi, good morning. I guess a question on the reiteration of the positive EBITDA for the year. I mean, clearly, you guys have a lot of demand for the brand, and you're putting a lot of effort towards being able to satisfy that demand. And I guess I'm just wondering, why the push towards positive EBITDA when there's a lot of investments here to be made? And.

Being able to satisfy that demand.

And I guess I'm just wondering.

Why why the push towards positive EBITDA when theres, a lot of investments here and it should be.

We made and.

I mean, it is a little bit tough to get to the positive EBITDA kind of in the back half of the year you need to have a pretty pretty big stair steps. So can you help us think thrill.

It is a little bit tough to get to the positive you, but kind of in the back half of the year, you need to have a pretty big stair step. So can you help us think through kind of what changes dramatically in the second half versus the first half?

What changes dramatically in the second half versus the first half.

Tom Davin: Hey, Sharon, Tom Davin here. Thank you for your question, and I appreciate you joining the call. We've got the whole team here. As Greg mentioned, Q2 is gonna look a lot like Q1 in terms of gross margin and adjusted EBITDA. Obviously that means we have to model out positive adjusted EBITDA in H2. We're banking on, number one, continued strength in the Outpost and wholesale business, particularly wholesale, driven by RTD upside, continued strength there. We see the pricing activity kicking in in H2. On top of that, we've got a number of productivity initiatives that we're just launching right now. Yes, it's gonna be tight, but we're still targeting that break even on a full year basis. Greg, anything to add?

Hey Sharon, Tom Davin here. Thank you for your question and I appreciate you joining the call. We've got the whole team here.

Hey, Sharon Tom Davin here. Thank you for your question and I. Appreciate you joining the call. We've got the whole team here. So as Gregg mentioned Q2 is going to look a lot like Q1 in terms of gross margin and adjusted EBITDA. So obviously that means we have to model out positive adjusted EBITDA in the second half.

So as Greg mentioned, Q2 is going to look a lot like Q1 in terms of gross margin and adjusted EBITDA. So obviously, that means we have to model out positive adjusted EBITDA in the second half of the year. So we're banking on number one, continued strength in the outpost and wholesale business, particularly wholesale driven by RTD upside, continued strength there.

Half of the year. So we're banking on number one continued strength in the outpost and wholesale business, particularly wholesale driven by RTD upside continued strength there we see the pricing activity kicking in the second half of the year.

We see the pricing activity kicking in the second half of the year and on top of that we've got a number of productivity initiatives that we're just launching right now. So, yes, it's going to be tight, but we're still targeting that break even on a full year basis.

On top of that we've got a number of productivity initiatives that we're just launching right now so yes, it's going to be tight, but we're still targeting that breakeven on a full year basis, Greg anything to add.

Evan Hafer: No, Tom, you covered it. It's the three things. It's upside based on additional capacity, particularly within RTD. It's the productivity initiatives that we've been planning or in the early stages of execution, and then it's continued pricing actions.

No, Tom, you covered it. It's the three things. It's upside based on additional capacity, particularly within RTD. It's the productivity initiatives that we've been planning are in the early stages of execution, and then it's continued pricing action.

Tom you covered it.

Three things, it's upside based on additional capacity, particularly within our TD. It's the productivity initiatives that we've been planning or in the early stages of execution and that is continued continued pricing actions.

Sharon Zackfia: Thanks for that. I guess a follow-up on the pricing actions. I know you haven't done RTD yet, but are you seeing any price resistance out there to the price you've taken so far? Can you update us on what your Outpost pipeline looks like for new company-owned development in 2023?

Okay. Thanks for that I guess, a follow up on the pricing actions I know you haven't done RTD, yet, but are you seeing any price resistance out there the price you've taken so far and can you update us on what your output pipeline looks like fare for a new company owned development in 'twenty three.

And thanks for that. I guess a follow up on the pricing actions. I know you haven't done our TV yet. But are you seeing any price resistance out there to the price you've taken so far? And can you update us on what your outpost pipeline looks like for for a new company on development in twenty three? Sure.

Tom Davin: Sure. I'll touch on the pricing. As we look across the portfolio, we see the leading indicator being the Outpost pricing, where we've already taken 8% on drinks and over 10% on bagged and boxed coffee. We're not seeing pushback either qualitatively or quantitatively there. The price increase on the ready-to-drink side will kick in in June. We'll see that benefit in H2. We've also taken pricing on Amazon and on our website. We've taken bagged coffee, boxed coffee pricing, and outbound shipping or shipping to the consumer's home. Overall, we're not seeing pushback or any demand elasticity at this point. Evan?

Sure I'll touch on the pricing so as we look across the portfolio.

As we look across the portfolio, we see the leading indicator being the outpost pricing where we've already taken 8% on drinks and over 10% on bagged and boxed coffee. We're not seeing pushback either qualitatively or quantitatively there.

See the leading indicator being the outpost pricing, where we've already taken 8% on drinks and over 10% on bag in box coffee.

Not seeing pushback, either qualitatively or quantitatively there.

The price increase on the ready-to-drink side will kick in in June . We'll see that benefit in the second half of the year. We've also taken pricing on Amazon. And on our website, we've taken bagged coffee, boxed coffee pricing, and outbound shipping or shipping to the consumer's home.

The price increases on the ready to drink side will kick in in June we'll see that benefit in the second half of the year. We have also taken pricing on Amazon and on our website, we've taken bagged coffee box in coffee pricing and outbound shipping are shipping to the consumer's home.

So overall, we're not seeing pushback or any demand elasticity at this point. Evan.

Overall, we're not seeing pushback or any demand elasticity at this point Evan Yes, I think that you can also look at the some.

Evan Hafer: Yeah. I think that you can also look at some indicators from the trailing 6 months as to the D2C conversion rates on organic and paid traffic. Those have been relatively consistent. There's never, in the last 180 days, as far as seasonality is concerned, been a decrease or an unpredicted decrease in conversion. We took price on D2C non-sub for coffee in both coffee and apparel. We didn't see a decrease in price. We've also decreased the amount of promos, so that could be considered taking price as well.

Evan Hafer: Yeah. I think that you can also look at some indicators from the trailing six months as to the D2C conversion rates on organic and paid traffic. Those have been relatively consistent. There's never, in the last 180 days, as far as seasonality is concerned, been a decrease or an unpredicted decrease in conversion. We took price on D2C non-sub for coffee in both coffee and apparel. We didn't see a decrease in price. We've also decreased the amount of promos, so that could be considered taking price as well.

Yeah, I think that you can also look at the some indicators from the trailing 6 months is to that DTC conversion rates on organic and paid traffic. Those have been relatively consistent. So there's never.

Some indicators from the trailing six months is too that DTC conversion rates on organic and paid traffic those have been relatively consistent so theres never in.

In the last 180 days, as far as seasonality is concerned, there's been a decrease or an unpredicted decrease in conversion. So we took price on D2C non-sub for coffee in both a coffee and apparel. We didn't see a decrease in price. We've also decreased the amount of promos. So that could be considered taking price as well.

And the last 180 days as far as seasonality is concerned Ben a decrease or an unpredicted decrease in conversion. So we took price on D to C. Non sub for coffee in both a copy in apparel, we didn't see a decrease in price. We have also decreased the amount of promos. So.

That could be considered taking price as well.

Tom Davin: Pete, do you wanna talk about the pipeline for Outposts and what you've brought to the fight?

Dave do you want to talk about the pipeline for outposts in what you brought to the.

If you want to talk about the pipeline for outposts and what you've brought to the fight. Yeah, absolutely. And Sharon, it's great to talk to you for the first time on the call here.

Heath Nielsen: Yeah, absolutely. Sharon, it's great to talk to you for the first time on the call here. So we're still on target for our 2023 guidance of 30 stores. What we've done is we've focused our market planning in some strong key markets, Texas, Arizona specifically, where we've been focusing on bringing in some top quality locations. Back on the pricing in the Outposts, we have seen 0 change in habit. It was nice to be able to launch 3 new beverages this week. With that, you know, the demand continues to be incredibly strong.

Heath Nielsen: Yeah, absolutely. Sharon, it's great to talk to you for the first time on the call here. So we're still on target for our 2023 guidance of 30 stores. What we've done is we've focused our market planning in some strong key markets, Texas, Arizona specifically, where we've been focusing on bringing in some top quality locations. Back on the pricing in the Outposts, we have seen 0 change in habit. It was nice to be able to launch three new beverages this week. With that, you know, the demand continues to be incredibly strong.

Absolutely and Sharon it's great too.

Talk to you for the first guy on the call here.

So we're still on target for our 2023 guidance of 30 30 stores. What we've done is we've focused our market planning

So we're still on target for our 2023 guidance of 30 30 stores. What we've done is we've focused our market planning and.

In some strong key markets, Texas, Arizona specifically, we've been we've been focusing on bringing in some top quality locations back on the pricing in the outpost.

Strong key markets, Texas, Arizona, specifically, where we've been we've been focusing on bringing in some top quality.

Location is back on the pricing and the outflows we have seen zero change and have it. It was a nice launched three new beverages. This week and with that the demand continues to be incredibly strong.

We have seen zero change in habit. It was nice to be able to launch three new beverages this week. And with that, the demand continues to be incredibly strong.

Sharon Zackfia: Great. I wanna ask about iced beverages, but I know I've surpassed my two questions already, so I'll pass it on. Thanks.

Great I wanted to ask about iced beverages that surpass.

Great. I want to ask about ice beverages, but I know I've surpassed my two questions already. Thanks. It'll come up. Thanks Sharon.

Surpassed my two questions alright. Thanks.

Heath Nielsen: It'll come up.

Thanks.

Tom Davin: Thanks, Sharon.

It'll come up thanks Sharon.

Operator: Thank you. Our next question comes from the line of Joe Altobello with Raymond James. Please proceed with your questions.

Thank you. Our next question is coming from the line of Joe <unk> with Raymond James. Please proceed with your questions.

Thank you. Our next question is coming from the line of Joe Altavella with Raymond James. Please proceed with your question.

Joe Altobello: Thanks. Hey, guys. Good morning.

Thanks. Hey guys, good morning. Morning. First question, is Walmart in the 47,000 RTD doors you reported as of March 31st?

Hey, guys good morning.

Tom Davin: Morning.

Joe Altobello: First question. Is Walmart in the 47,000 RTD doors you reported as of March 31?

Good morning.

First question is Walmart in the 47000 RTD doors, you reported as of March 31.

Tom Davin: Yes. Thanks, Joe. Good morning. Toby, you want to handle that one?

Yes, Thanks, Joe Good morning, Toby you want to handle that one yes. Good morning, Good morning, Joe Yes, So we started.

Yes. Thanks, Joe. Good morning. Toby, you want to handle that one? Yeah. Good morning. Good morning, Joe. Yes. So we started our RTD distribution in Walmart last fall with about 400 stores. We're in the process of expanding that distribution to over 4,000 stores. So there is a Walmart number that's in that 47,000.

Toby Johnson: Yeah. Good morning. Good morning, Joe. Yes. We started our RTD distribution in Walmart last fall with about 400 stores. We're in the process of expanding that distribution to over 4,000 stores. There is a Walmart number that's in that 47,000.

RTD distribution in Walmart last fall with about 400 stores. We're in the process of expanding that distribution to over 4000 stores. So there is a walmart number that's in that 47000.

Joe Altobello: Okay. What's the seasonality of that expansion? You mentioned, you know, obviously there's shelf resets that go on throughout the year. So is that more Q4 weighted in terms of expansion?

Okay, and what's the seasonality of that expansion? You mentioned, obviously, the shelf resets that go on throughout the year, so is that more fourth quarter weighted in terms of expansion?

Okay, and what's the seasonality of that expense you mentioned, obviously the shelf resets that go on throughout the year. So is that more fourth quarter weighted in terms of expansion.

Toby Johnson: We do see some retailers who are very disciplined about their reset schedules, but for our brand in particular, we've had just incredible partnership from our retail partners. They've actually cut us into the shelf off of that schedule in many cases. We try to be ready, and it's really one of the big drivers behind building our capacity. When we have the ability to partner and expand that distribution, we wanna take advantage of it. We've seen steady growth even outside of those windows. Although typically, what you see from retailers is change in who they're carrying during those specific resets. We're very grateful for the partnerships that we've been building.

We do see some retailers who are very disciplined about their reset schedules, but for our brand in particular, we've had just incredible partnership from our retail partners, they've actually cut us into this shelf off of that schedule in many cases, so we try to be ready and it is.

We do see some retailers who are very disciplined about their reset schedules, but for our brand in particular, we've had just incredible partnership from our retail partners. They've actually cut us into the shelf off of that schedule in many cases.

So we try to be ready, and it's really one of the big drivers behind building our capacity. When we have the ability to partner and expand that distribution, we want to take advantage of it. So we've seen steady growth even outside of those windows, although typically what you see from retailers is change in who they're carrying during those specific resets. We're very grateful for the partnerships that we've been building.

One of the big drivers behind building our capacity when we have the ability to partner and expand that distribution and we want to take advantage of it. So we have seen steady growth even outside of those windows. Although typically what you see from retailers is change and who they are carrying during a specific <unk>, we're very grateful for the partnership.

That we've been building.

Tom Davin: Joe, the other quick point on that is Walmart tested with the 2 11-ounce SKUs. They're rolling out with all 4 of our SKUs, which rarely ever happens.

And Joe, the other quick point on that is Walmart tested with the two 11-ounce SKUs. They're rolling out with all four of our SKUs, which rarely ever happens.

And Joe the other quick point on that is Walmart tested with the 211 ounce Skus. They are rolling out with all four of our skus, which rarely ever happens.

Joe Altobello: Got it. Okay. Just one last one for me on CapEx. You mentioned that, you know, the cost of building the Outpost has gone up, and I think the old number was about $1.4 million per Outpost. What does that number look like today, and what's the total CapEx you're thinking for 2022 and 2023?

Got it Okay. One last one for me on Capex, you mentioned that the cost of building the outpost.

Got it. Okay, one last one for me on catbacks. You mentioned that near the cost of building the outpost has gone up and I think the old number was about 1.4 million per outpost. So what does that number look like today and what's the total catbacks you're thinking for for 22 and 23?

Post has gone up and I think the old number was about $1 4 million throughout post so what does that number look like today and what's the total capex youre thinking for 'twenty two 'twenty three.

Tom Davin: We know the number's gonna be higher, Joe. We don't have a firm estimate on that yet. We expect to give you an update on the next earnings call in August, but we are definitely seeing some inflationary pressures in construction costs right now.

If we know the number is going to be higher, Joe, we don't have a firm estimate on that yet. We expect to give you an update on the next earnings call in August . But we are definitely seeing some inflationary pressures and construction costs right now.

And we know the number is going to be higher Joe we don't have a firm estimate on that yet we expect to give you an update on the next earnings call in August , but we are definitely seeing some inflationary pressures in construction costs right now.

Evan Hafer: With really, Joe, adding to that, the inflationary pressures we'll see really with our 2023 openings, less of an impact on the openings in 2022, where some of the work is underway. Yeah, we're pretty locked in on for this fiscal year.

With really, Joe, adding to that, the inflationary pressures we'll see really with our 2023 openings, less of an impact on the openings in 2022 where some of the work is underway. Yeah, we're pretty locked in from this fiscal year. Okay. Thank you, guys.

It was really Joe adding to that the inflationary pressures, we'll see really with our 2023 openings less of an impact on the openings in 2022, where some of the work is underway, we're pretty locked in on that for this fiscal year.

Joe Altobello: Okay. Thank you, guys.

Thank you guys. Thanks.

Tom Davin: Thanks, Joe.

Thanks, Joe.

Operator: Thank you. Our next question comes from the line of Steve Powers with Deutsche Bank. Please proceed with your questions.

Thank you. Our next questions come from the line of Steve Bowers with Deutsche Bank. Please proceed with your question.

Thank you. Our next question is coming from the line of Steve powers with Deutsche Bank. Please proceed with your questions.

Steve Powers: Hey, thanks, and good morning, everybody. Maybe first, could you just talk a little bit further about the flat DTC sales in the quarter? Definitely understand and appreciate the comparison dynamics. I guess I'm just looking for a little bit more perspective on the lack of growth alongside the 11% subscriber growth you called out. It just implies, you know, blunt metric, 10% decrease in the revenue per subscriber overall, and I'd just love a little color about how you think about that, how you think about that metric, and how you think about that metric trending over time.

Hey, thanks, and good morning, everybody. Maybe first could you just talk a little bit further about the flat DDC cells in the quarter?

Hey, Thanks, and good morning, everybody.

Maybe first could you just talk a little bit further about the flat <unk> sales in the quarter.

Definitely understand and appreciate the comparison dynamics, but I'm just looking for a little bit more perspective on the lack of growth alongside the 11% subscriber growth you called out. It implies, blunt metric, 10% decrease in the revenue per subscriber overall, and I just love a little color about how you think about that metric and how you think about that metric trending over time.

Definitely understand and appreciate that the comparison dynamics, but because I'm just looking for a little bit more perspective on the lack of growth alongside the 11% subscriber subscriber growth you called out it implies.

What metric, 10% decrease in the revenue per subscriber overall and I just want a little color about how you think about that how you think about that metric and how you think about that metric trending over time.

Evan Hafer: Sure. Hey, thanks, Steve. This is Evan Hafer. Thanks for the question. I think what you're seeing is a natural progression or evolution of the marketing spend directly related to the most, I would say, advantageous or opportunity-based channels in Black Rifle. As we start to look at this is an omni-channel business, we have to really start allocating our marketing dollars to the things that are hyper-growth and effective. The D2C softness, I think a lot of people have felt that over the last, I'd say, 12 months. Right now, what we're in the process of doing is pulling in, reorganizing what I would say is an owned media strategy around how do we activate influencers from the D2C side, but also gives us direct benefit to general branding.

Thanks, Steve. This is Evan Hafer. Thanks for the question. I think what you're seeing is you're seeing a natural progression or evolution of the marketing spend directly related to the most, I would say, advantageous or opportunity-based channels.

Sure. Thanks, Steve This is <unk>.

Thanks for the question I think what Youre seeing is youre seeing a natural progression of our evolution of the marketing spend directly directly related to the most I would say advantageous or opportunity based channels and black rightfully. So as we start to look at this is an omnichannel business, we have to really start allocating our marketing dollars.

So as we start to look at, this is an omni-channel business, we have to really start allocating our marketing dollars to the things that are hyper-growth and effective. The D2C softness, I think a lot of people have felt that over the last, I'd say 12 months.

Things that are hyper growth and effective the D to C softness I think a lot of people have felt that over the last I'd say 12 months.

So right now we're in the process of doing is pulling in reorganizing what I would say as an owned media strategy around how do we activate influencers from the <unk> side, but also gives us directly direct benefit to general branding. So when we look at the billions of impressions that we're doing across the internet, which I think.

So right now, what we're in the process of doing is pulling in, reorganizing what I would say as an owned media strategy around how do we activate influencers from the D to C side, but also gives us direct benefit to general branding.

Evan Hafer: When we look at the billions of impressions that we're doing across the Internet, which I think we're one of, if not the only coffee company that emphasizes something like this, our dollars are being emphasized on the hyper-growth opportunity base in areas of the business. It's not necessarily something that we do understand why it's not something that we're concerned with.

So when we look at the billions of impressions that we're doing across the internet, which I think we're one of, if not the only coffee company that emphasizes something like this.

We're one of if not the only coffee company that emphasizes something like this.

Our dollars are being emphasized on the hyper growth opportunity-based areas of the business.

Our dollars are being emphasized on the hyper growth opportunity based.

Areas of the business so it's.

It's not necessarily something that we do understand why. It's not something that we're concerned with.

It's not necessarily something that debt.

That we we do understand why.

Not something that we're concerned with.

Tom Davin: Steve, I'll also add, if you do the rough metric where I think you've got number of subscribers in the denominator and the numerator is total D2C revenue, that math actually doesn't work because you've got subscription revenue, non-sub D2C revenue, and Amazon in there. Where we're off year to year is going to be in that non-sub D2C. We are seeing an increase in not just subscribers, but overall subscriber revenue. The softness is the non-sub D2C year on year.

Dave I'll also add if you do the rough metric, where I think you've got number of subscribers in the denominator and the numerator is total DTC revenue that math actually doesn't work because you've got subscription revenue non subsidy to see revenue and Amazon in there. So.

Steve, I'll also add, if you do the rough metric where I think you've got number of subscribers in the denominator and the numerator is total D2C revenue, that math actually doesn't work because you've got subscription revenue, non-sub D2C revenue, and Amazon in there. So where we're off year-to-year is going to be in that non-sub D2C.

Where were off year to year is going to be in that non subsidy to see so we are seeing an increase and not just subscribers, but overall subscriber revenue softness as the non subsidy to see year on year.

So, we are seeing an increase in not just subscribers, but overall subscriber revenue. The softness is the non-sub-DC year-on-year.

Evan Hafer: That really, just to highlight that, Steve, before we get off, is remember, this business for the majority of its life is a direct-to-consumer subscription-based company. Now as we start to grow into more of an omni-channel emphasis, those dollars have to be allocated, and the emphasis of the branding has to be allocated to other channels. It's a natural evolution that I think that we're actually happy with. I think that we've seen an incremental amount of growth in those other channels, which I'm very happy with. Yeah, adding just one more point before we move off this important topic is the results in D2C are entirely in line with our internal projections.

And that really, just to highlight that, Steve, before we get off, is remember this business for the majority of its life is a direct-to-consumer, subscription-based company. So now as we start to grow into more of an omni-channel emphasis, those dollars have to be allocated and the emphasis of the branding has to be allocated to other channels. So it's a natural evolution that I think that we're actually happy with. I think that we've seen an instrumental amount of growth in those other channels, which I'm very happy.

And that really just to highlight that Steve before we get up is <unk>.

Remember this business for the majority of its life as a direct to consumer subscription based company. So now as we start to grow into more of an omnichannel emphasis those dollars have to be allocated in the emphasis of the branding has to be allocated to other channels. So it's a natural evolution that I think that we're actually happy with I think that we.

We've seen a <unk>.

Instrumental amount of growth in those other channels, which are very happy with yes and.

Adding just one more point before we move off this important topic is the results in D2C are entirely in line with our internal projections. So what you see there both from a subscriber perspective and a non-subscriber is exactly what we expect or very close to what we expected for the quarter.

Just one more point before we move office. That's an important topic is the results in D. C are entirely in line with our internal projections. So what you see there both from a subscriber perspective and a non subscriber is exactly what we expect or very close to what we expected for the quarter.

Evan Hafer: What you see there both from a subscriber perspective and a non-subscriber is exactly what we expect or very close to what we expected for the quarter.

Steve Powers: Okay. That was great. Thank you for all that, all that color. A separate different topic. You mentioned just the higher salary, wages, and benefits costs, mostly headcount driven. I guess I'm just curious how you're thinking about wage inflation, especially, you know, at the Outpost and in your Outpost model going forward. How big a concern or just factor is that in the sort of total cost of operation of those Outpost as you ramp them up and build them out?

Okay, that's great. Thank you for all that all that color separate different topic. You mentioned

Okay. That's great. Thank you for all that all that color.

Separate different topic.

You mentioned.

We just hired.

higher the the higher salary wages and benefits costs mostly headcount driven. I guess I'm just curious how you're thinking about wage inflation especially you know at the outposts and in your outpost model growing going forward how big a concern or just factor is that in the sort of the total cost of operation of those of those outposts as you as you ramp them up and and build them out.

The higher salary wages and benefits costs, mostly head count driven.

I'm, just curious how youre thinking about wage inflation.

Especially.

At the outposts in in your outpost model growing going forward how.

How big a concern or just factor is that in the.

That's sort of the total cost of operation of those of those outposts as you as you ramp them up and build them out.

Tom Davin: Heath, you wanna take that one?

If you want to take that one. Yeah, what we've been incredibly fortunate to see incredibly low turn within our how pose it's it's absolutely dedicated to.

If you want to take that one.

Evan Hafer: Yeah. We've been incredibly fortunate to see incredibly low turnover within our Outposts. It's absolutely dedicated to the lifestyle and the community that we've built. We have a very loyal customer base as well. You know, we're building a company that's high on culture, and people wanna work for us. You know, recruiting efforts are strong. Everywhere we've opened, we've been able to open at full capacity and, you know, feel very strong that it will maintain. Yeah, I think, and I'll add some additional color to that.

Ben.

Incredibly fortunate to see in credit low turn within our outflows, it's absolutely dedicated to.

the lifestyle and the community that we've built. And so we have a very, very loyal customer base as well. And so we're building a company that's high on culture and people wanna work for us. And so recruiting efforts are strong. Everywhere we've opened, we've been able to open at full capacity and feel very strong that that will maintain.

The lifestyle and the community that we've built.

And so we have a very very loyal customer base as well and so we're building a company thats high on culture and.

And people want to work for us and so recruiting efforts are strong everywhere. We've opened we've been able to open at full full capacity and feel very strongly that that will maintain.

Yeah, I think and I'll add some additional color to that over the last, you know, eight years of, you know, running this company and talking to multiple people that want to come to work for this company and now into the thousands, if not tens of thousands, what we see is

Yes, I think and I'll add some additional color to that over the last eight years of.

Evan Hafer: Over the last, you know, 8 years of you know, running this company and talking to multiple people that wanna come to work for this company and now into the thousands, if not tens of thousands, what we see is people want to come to work for Black Rifle Coffee because we're a mission-based company that has a very, I would say, special and refined culture. People are looking for something and a place where they can work that has an authentic bond as far as a community-based element. We have a connection not only to who works here, but also to the community of subscribers and people that are Black Rifle Coffee drinkers. I think that makes us very unique. It also gives us a moat around some of these inflationary issues that some of these other businesses are experiencing.

Evan Hafer: Over the last, you know, eight years of you know, running this company and talking to multiple people that wanna come to work for this company and now into the thousands, if not tens of thousands, what we see is people want to come to work for Black Rifle Coffee because we're a mission-based company that has a very, I would say, special and refined culture. People are looking for something and a place where they can work that has an authentic bond as far as a community-based element. We have a connection not only to who works here, but also to the community of subscribers and people that are Black Rifle Coffee drinkers. I think that makes us very unique. It also gives us a moat around some of these inflationary issues that some of these other businesses are experiencing.

Running this company.

And talking to multiple people that want to come to work for this company and now into the one thousands if not tens of thousands what we see is.

People want to come to work for Black Rifle Coffee because we're a mission-based company that has a very, I would say, special and refined culture. People are looking for something and a place where they can work that has an authentic bind as far as a community-based element. We have a connection not only to...

People want to come to work for Blackrock will coffee because we're a mission based company that has a very I would say special and refined culture people are looking for something in a place where they can work that hasnt authentic bind as far as a community based element, we have a connection not only to who works here.

who works here, but also to the community of subscribers and people that are Black Ripple Coffee.

But also to the community of subscribers and people that are Blackrock for coffee drinkers I think that makes us very unique. It also gives us a moat around some of these inflationary issues at some of these other businesses are experiencing we have a unique and special connection to people.

drinkers. I think that makes us very unique. It also gives us a moat around some of these inflationary issues that some of these other businesses are experiencing. We have a unique and special connection to people. And when I look at this, we've got this pipeline that we're generating from a skill bridge perspective, pulling people off active duty, and then

Evan Hafer: We have a unique and special connection to people. When I look at this, we got this pipeline that we're generating from a SkillBridge perspective, pulling people off active duty. When I say active duty, active duty military, so depending on how you classify that, they're retiring or getting out, and they're coming to work for Black Rifle Coffee at a much higher rate than other employers. We're competing against people that have unique cultures like General Electric, and we're winning against them every day, which I think says something extremely positive about the culture and the unique company that we have here at Black Rifle.

And when I look at this we got the <unk>.

<unk> that we're generating from a <unk> perspective, pulling people off active duty and then Paul.

I want to say active duty, active duty military. So depending on how you classify that, they're retiring or getting out, and they're coming to work for Black Rifle Coffee at a much higher rate than other employers. So we're competing against people that have unique cultures, like General Electric. And we're winning against them every day, which I think says something extremely positive about the culture and the unique company that we have here at Black Rifles.

And when I say active duty active duty military so depending on how you classify that they are retiring or getting out and they're coming to work for Blackrock will coffee at a much higher rate than other employers. So we're competing against people that have unique cultures like general electric and we're winning against them every day, which I think sets up.

Extremely positive about the culture and the unique company that we have here at <unk>.

Tom Davin: It's not for everybody, but for those who wanna volunteer, it's quite unique.

Yes.

It's not for everybody, but for those who want to volunteer, it's quite unique. Yep. Got it. Thanks very much.

And scenario for everybody, but for those who want a volunteer it's quite unique.

Evan Hafer: Yep.

George Kelly: Got it. Thanks very much.

Got it thanks very much.

Tom Davin: Thank you.

Thank you.

Operator: Thank you. Our next question has come from the line of George Kelly with ROTH Capital Partners. Please proceed with your questions.

Thank you. Our next question has come from the line of George Kelly with Roth Capital. Please proceed with your

Thank you. Our next question is coming from the line of George Kelly with Roth Capital. Please proceed with your questions.

George Kelly: Hi, everybody. Thanks for taking my question. Just a couple for you on the RTD business. I think you said in your prepared remarks that you couldn't supply all the demand that you saw. Could you quantify how much sort of how much revenue that could have represented?

Hi, everybody, thanks for taking my question. So just a couple for you on the, the RTD business. I think you said in your prepared remarks that you couldn't supply all the demand that you saw. So, could you quantify how much sort of how much revenue that that could have represented?

Hi, everybody. Thanks for taking my question so.

Just a couple for you on the RTD business I think you said in your prepared remarks that you couldnt supply all the demand that you saw so could you quantify how much.

How much revenue that could have represented.

Tom Davin: You bet, George. I'm gonna let Toby handle that. We haven't quantified it exactly, but we can give you some directional guidance.

You bet, George, so I'm going to let Toby handle that. We haven't quantified it exactly, but we can give you some directional guidance.

You bet, George So I'm going to let Toby handle that we haven't quantified that exactly but we can give you some directional guidance.

Toby Johnson: Hi, George. With the explosive demand that we've seen for our product, we knew last fall that even though we came into 2022 more than doubling our capacity, it wouldn't be enough. We started partnering with additional suppliers, and we've signed 2 new contracts, and what we've seen is that demand is not slowing down. The great news is this additional capacity and the partnerships that we've been building will enable us to meet even more of the demand that we see for our products beginning in H2 of 2022. We're very confident that we can continue to meet demand, and we're building even more capacity for the future. I think we've said before what we had coming into the year was enough to meet what was in our projections.

Toby Johnson: Hi, George. With the explosive demand that we've seen for our product, we knew last fall that even though we came into 2022 more than doubling our capacity, it wouldn't be enough. We started partnering with additional suppliers, and we've signed two new contracts, and what we've seen is that demand is not slowing down. The great news is this additional capacity and the partnerships that we've been building will enable us to meet even more of the demand that we see for our products beginning in H2 of 2022. We're very confident that we can continue to meet demand, and we're building even more capacity for the future. I think we've said before what we had coming into the year was enough to meet what was in our projections.

Hi, George. So with the explosive demand that we've seen for our product, we knew last fall that even though we came into 2022 more than doubling our capacity, it wouldn't be enough.

George.

With the explosive demand that we've seen for our products. We knew last fall that even though we came into 2022 more than doubling our capacity it wouldn't be enough. So we started partnering with additional suppliers and we have signed two new contracts and what we've seen is that demand is not slowing down the <unk>.

So we started partnering with additional suppliers, and we've signed two new contracts. And what we've seen is that demand is not slowing down.

So the great news is this additional capacity in the partnerships that we've been building will enable us to meet even more of the demand that we see for our products beginning in half two of 2022. So we're very confident that we can continue to meet demand and we're building even more capacity for the future.

Great News is this additional capacity and the partnerships that we've been building will enable us to me even more of the demand that we see for our products beginning in half two of 2022.

So we're very confident that we can continue to meet demand and we're building even more capacity for the future I think we've said before what we had coming into the year was enough to meet what was in our projections. So this is really all about capturing the upside in the growth and the momentum for the brand.

I think we've said before what we had coming into the year was enough to meet what was in our projections. So this is really all about capturing the upside and the growth and the momentum for the brand.

Toby Johnson: This is really all about capturing the upside and the growth and the momentum for the brand.

George Kelly: Just to make sure that I heard you right. I mean, was it a material amount of revenue that you lost in the quarter just because you were unable to supply it?

And and just to make sure that that I heard you right, can you I mean, was it a material amount of revenue that you you lost in the quarter just because you were unable to to supply it?

And just to make sure that I heard you right.

Can you I mean, it wasn't a material amount of revenue that you use.

<unk> lost in the quarter, just because you were unable to to supply it.

Evan Hafer: Yeah, George. Like Tom said, we're not gonna quantify it, but I guess what I'd say is the demand is materially higher than our existing capacity. When we bring this additional capacity online here in the not too distant future, that is gonna drive some significant growth within the RTD product line in the wholesale channel.

Yeah, George, like Tom said, we're not we're not going to quantify it. But I guess what I'd say is the demand is is is materially higher than our existing capacity. And so when we bring this additional capacity online here in the not too distant future, that that is going to drive some some significant growth within that RTD product line in the wholesale channel.

Yes, George like Tom said, we're not we're not going to quantify it but I guess, what I'd say is the demand is.

Is materially higher than our existing capacity and so when we bring this additional capacity online here in the not too distant future that is going to drive some significant growth within that RSV product line in the wholesale channel.

George Kelly: Okay. Understood. Then second question for you, still on RTD, but I've been amazed that you've been able to grow that business so quickly without more incremental advertising dollars. I know, Evan, you were talking about how your ad budget is kinda shifting into the channels that are getting the best returns. But is it sustainable? If I just look year over year, it's not that much incremental spending.

Okay, understood. And then second question for you, still on RTD, but I've been amazed that you've been able to grow that business so quickly without more incremental advertising dollars.

Okay understood and then second question for you.

Still on RTD, but I've been amazed that you've been able to grow that business. So quickly without more incremental advertising dollars and I know Evan you were talking about how your AD budget is kind of shifting into the channels that are.

And I know, Evan, you were talking about how your ad budget is kind of shifting into the channels that are getting the best returns, but is it sustainable? If I just look year over year, it's not that much incremental.

Getting the best returns but.

Is it sustainable the if I just look year over year, it's not that much incremental spend down.

spending. And would you suspect later this year or next year to see that really inflect higher as you support these businesses?

Evan Hafer: Yeah.

George Kelly: Would you suspect later this year and next year to see that really inflect higher as you support these businesses?

And would you expect later this year and next year to see that really inflect higher as you support support these businesses.

Evan Hafer: No, and when I look at the outlook in marketing dollars as far as how we're allocating those resources, really, and not to go into the specifics as far as how we're marketing, but the way that we're generating media in-house and offsetting ultimately the cost and being able to authentically reach our customers through multiple social media channels, which I think is something very unique to Black Rifle outside of a lot of other companies, we can generate better media that resonates more authentic with our audience and communicate with them more effectively than majority of all the other companies out there. When we pivot the type of branding and messaging around a specific product, it's done in-house.

No, when I look at the outlook in marketing dollars as far as how we're allocating those resources.

No.

When I look at the outlook and marketing dollars as far as how were.

We're allocating those resources.

really not to go into the specifics as far as how we're marketing, but

Really.

Not to go into the specifics as far as how we're marketing, but the way that we're generating media in house and offsetting ultimately the cost and being able to to authentically reach our customers through multiple social media channels, which I think is something very unique to black grateful outside of a lot of other companies.

The way that we're generating media in-house and offsetting ultimately the cost and being able to authentically reach our customers through multiple social media channels, which I think is something very unique to Black Rifle outside of a lot of other companies. We can generate better media that resonates more authentic with our audience and communicate with them more effectively than majority of all the other companies out there. So when we pivot the type of branding and messaging around a specific product.

Can generate.

<unk> media that resonates more authentic with our audience and communicate with them more effectively than majority of all the other companies out there. So when we pivot the type of branding and messaging around a specific product.

it's done in-house. You won't necessarily see those parsed out and directly allocated to RTD or an increase to that over the next, I would say, 12 to 18 months. You'll see it, the messaging, the branding, the intent, or the channel-specific allocation, but it's still bucketed as branding specific. Does that make sense? Yes. Yes, it does.

Evan Hafer: You won't necessarily see those parsed out and directly allocated to RTD or an increase to that over the next, I would say, 12 to 18 months. You'll see it, the messaging, the branding, the intent or the channel specific allocation, but it's still bucketed as branding specific. Does that make sense?

Done in house, you won't necessarily see those parsed out and directly allocated to RTD or an increase of that over the next I would say 12 to 18 months.

Youll see the messaging the branding the intent or the channel specific allocation, but it's still it's still buckets. It's branding specific does that makes sense.

Laurent Grandet: Yes. Yes, it does.

Evan Hafer: Okay.

Yes, yes, it does okay. Thank.

Laurent Grandet: Bye. Thank you.

Evan Hafer: Sure.

Thank you.

Tom Davin: Thanks, George.

Sure.

Thanks George.

Operator: Thank you. Our next question has come from the line of Bill Chappell with Truist Securities. Please proceed with your questions.

Thank you. Our next questions come from the line at Bell Chapel with Truist Security. Please proceed with your questions.

Thank you. Our next question will come from the line of FL Chappell with <unk> Securities. Please proceed with your questions.

Bill Chappell: Thanks. Good morning.

Thanks, Good morning.

Evan Hafer: Morning.

Morning. First, Evan, on your kind of, I think, in your prepared remarks talking about cold beverages moving into other categories, yeah, just trying to understand when and also kind of what your thoughts are of how far the brand can, you know, where customers will admit it, and will it go as far as non-coffee drinks, will it go to alcohol, will it go to other things, or, you know, just kind of anything you can expand on those comments.

Hey, good morning.

Bill Chappell: First, Evan, on your kind of I think in your prepared remarks talking about cold beverages moving into other categories. Yeah, just trying to understand when and also kind of what your thoughts are of how far the brand can, you know, where customers will admit it and will it go as far as non-coffee drinks? Will it go to alcohol? Will it go to other things? Or, you know, what just kinda anything you can expand on those comments.

First Avenue.

On your kind of I think in your prepared remarks talking about cold beverages moving to other categories.

Yes.

Trying to understand.

And also kind of what your thoughts are of how far the brand can can where customers will.

Admit it will it go as far as non coffee drinks will go to alcohol would go to other things or just.

Just kind of any anything you can expand on those comments.

Evan Hafer: Sure. I think from my perspective, I'm looking at what do my customers want, not what do I wanna give my customers. I think this is more of a listen than it is me forcing the communication and the development around that. What we've heard over the last several months, specifically in our Outposts, is that people want more cold beverages. Our job is to go in and dive around cold beverages and then look at how we can continue to not only develop inside for the customers in the Outposts, but what also will resonate in different channels with them.

Sure, I think from my perspective, I'm looking at what do my customers want, not what do I want to give my customers.

Sure I think from my perspective.

I'm looking at what are my customers want not what do I want to give my customers I think.

This is more of a listen than it is me forcing the communication and the development around that. So what we've heard of the last

This is more of a listen then it is forcing the communication and the development around that so.

So what we've heard over the last.

several months, specifically in our outposts, is that people want more cold beverages. So our job is to go in and dive around cold beverages and then look at how we can continue to not only develop insight for the customers in the outposts, but what also will resonate in different channels.

Several months specifically in our outpost is that people want more cold beverages. So our job is to go in and dive around cold beverages, and then look at how we can continue to not only develop inside for the customers and the output would also will resonate in different channels with them. So I think that's also one of the things that has made us successful in the RTD and why.

Evan Hafer: I think that's also one of the things that's made us successful in the RTD and why there's been such hyper-growth specifically related to that category, is we're listening to our customers, developing in-house, and then releasing those into the channel that ultimately yields us, I think, the highest return. From Heath's perspective, and I can pitch it over to him, he can talk about the cold beverage cycle. I think that's kind of where our head is at as far as the future development. If that leads us into additional products that are cold, you're gonna see, one, the dev cycle come in earlier, and then you'll look at a wide variety of options.

So I think that's also one of the things that's made us successful in the RTD and why there's been such hyper growth specifically related to that category is we're listening to our customers, developing in-house, and then releasing those into the channel that ultimately yields us, I think, the highest return.

There's been such hyper growth specifically related to that category is we're listening to our customers developing in house and then releasing those into the channel that ultimately yields as I think the highest return so from <unk> perspective, and I can pitch it over to him and he can talk about the cold beverage cycle.

So from Heath's perspective, and I can pitch it over to him, he can talk about the cold beverage cycle. I think that's kind of where our head is at as far as the future of development. So if that leads us into additional products that are cold, you're gonna see one, the dev cycle come in earlier, and then you'll look at a wide variety of options. So not going into specifics.

I think thats kind of where our head is at as far as the future development. So that leads us into additional products that are cold youre going to see one the Dev cycle come in earlier, and then Youll look at a wide variety of options, so not going into specifics.

Evan Hafer: Not going into specifics, you know, if we've had multiple people approach us about doing, you know, co-branded alcohol-based, you know, cold beverages, and we really just haven't had the bandwidth. Eventually, some things like that will come online in more of a dev cycle to see how they go. Right now, we're just trying to capture the natural growth of all the other cold beverages. Heath, do you have anything to add to that? No, you're right on there, Evan. I would, you know, being primarily based in the Sun Belt, Texas, Arizona, Florida, Georgia, they trend higher on the cold beverage side to begin with. We are, you know, we're half or less of some competitors as it comes to our cold beverage platform.

If we've had multiple people approach us about doing, you know, co-branded, alcohol-based, you know, cold-bagged...

We had multiple people approach us about doing co branded alcohol base.

Cold beverages, and we really just haven't had the bandwidth eventually some things like that will come online in more of a dev cycle to see how they go but right now we're just trying to capture the natural growth of all the other cold beverages hit do you have anything to add to that now youre right on there Evan I would.

And we really just haven't had the bandwidth. Eventually, some things like that will come online in more of a dev cycle to see how they go. But right now, we're just trying to capture the natural growth of all the other cold beverages. Heath, do you have anything to add to that? No, you're right on there, Evan. Being primarily based in the Sunbelt, Texas, Arizona, Florida, Georgia, they trend higher on the cold beverage side to begin with. And we're half or less of some competitors as it comes to our cold beverage platform.

Being primarily based in the Sunbelt, Texas, Arizona, Florida, Georgia, they trend higher on the cold beverage side to begin with.

We are we're half or less of.

Some competitors as it comes to our cold beverage platform.

Evan Hafer: Right now we're focused primarily, I'd say, around kind of the tea-based fruit fusion level, which is a good quality beverage. I do see us adding, you know, beverages in here in the next month or two, heavier in that side. You know, what's nice is that we have a very strong, incredibly loyal coffee-based beverage, and we love that. We're not seeing, you know, the pull as much on some of the higher milk and dairy levels. You know, we like the idea of the addition of more of the tea-based fruit fusion for us.

Right now we're focused primarily, I'd say, around the kind of the tea-based fruit fusion level, which is a good quality beverage. I do see us adding, you know, beverages in here in the next month.

Right now we're focused primarily I would say around the kind of the key base fruit fusion level, which is a a good quality beverage.

I do see us adding <unk>.

Averages.

Here in the next month.

or too heavier in that side. You know, what's nice is that we have a very strong, incredibly loyal coffee-based beverage, and we love that. We're not seeing, you know, the pull as much on some of the higher milk and dairy levels. And so, you know, we like the idea of the addition of more of the tea-based fruit fusion for us.

Our two heavier in that side.

What's nice is that we have a very strong incredibly loyal coffee based beverage and we love that we're not seeing the pull as much on some of the higher milk and dairy levels and so we like the idea of the addition of more than <unk> based fruit fusion for us.

Bill Chappell: Thanks. No, that's helpful. Separately, just back on D2C growth. You alluded that part of it's also a year ago, the comps, everybody was working from home, obviously.

Thanks, that's helpful and then separately just back on DTC growth.

Thanks, so that helps. That's helpful. And then separately just back on DTC growth.

Yeah, you alluded that part of it's also a year ago, the comps, everybody was working from home and obviously moved to the omni channel. Just kind of, as I look forward, does that kind of imply at least through this year that the business will be.

You alluded that part of it is also a year ago. The comps everybody was working from home.

Evan Hafer: Yeah

Bill Chappell: ... the move to the omni-channel. Just kinda as I look forward, does that kind of imply, at least through this year, that the business will be, you know, flattish excluding price increases, in terms of growth and long term, it's kinda flattish as people get their products at different retailers? I'm just trying to understand from a model standpoint, how to look at that business. Thanks.

Bill Chappell: the move to the omni-channel. Just kinda as I look forward, does that kind of imply, at least through this year, that the business will be, you know, flattish excluding price increases, in terms of growth and long term, it's kinda flattish as people get their products at different retailers? I'm just trying to understand from a model standpoint, how to look at that business. Thanks.

Yes.

Move to the omni channel just kind of as I look forward does that kind of imply at least through this year that.

The business will be flattish excluding price increases in terms of growth and long term, it's kind of flattish as people get their products at different retailers I'm, just trying to understand from a modeling standpoint.

flattish excluding price increases in terms of growth and long term it's kind of flattish as people get their products at different retails. I'm just trying to understand from a model standpoint how to look at that business.

How to look at that business. Thanks.

Evan Hafer: Yeah, you know, D2C always has a bit of seasonality to it, right? When you look towards the H2 in any D2C company, you're gonna look at Q4 as your big opportunity to put wins on the board. You know, flattish, I guess, is what you would kind of represent as the general narrative for D2C. I don't expect us to be flattish. I expect the H2 to do really well for us in the D2C. The reason I say that is the internal components of what we're building for the marketing structure to reach the D2C customer more effectively now are gonna pay off towards the end of the year.

Yeah, you know, D2C always has a bit of seasonality to it, right? So when you look at the towards the back half of the year in any D2C company, you're going to look at Q4 as your big opportunity to put wins on the board.

Yes.

<unk> always has a bit of seasonality to it right. So when you look at the.

Towards the back half of the year in any DTC company Youre going to look at Q4, as you're as you're big opportunity to put wins on the board.

So, you know, Flat-ish, I guess, is what you would kind of represent as the general narrative for D to C. I don't expect us to be Flat-ish. I expect the back half of the year to be, to do really well for us and the D to C. And the reason I say that is,

So.

Flattish I guess is what you would kind of represented the general narrative for DTC I don't expect us to be flattish I expect the back half of the year to be.

To do really well for us in the DSC and the reason I say that is the internal components of what we're building for the marketing structure to reach the DTC customer more effectively now are going to pay off towards the end of the year and.

the internal components of what we're building for the marketing structure to reach the D2C customer more effectively now are going to pay off towards the end of the year. When it pays off from the D2C perspective, it will also, when I say general branding, it's also going to pay off from a general branding perspective. So we're going to yield some really, I think, great results towards the end of the year.

Evan Hafer: When it pays off from the D2C perspective, when I say general branding, it's also gonna pay off from a general branding perspective. We're gonna yield some really, I think, great results towards the end of the year.

When it pays off from the <unk> perspective, it will also when Jan Wald, Brent when I say general branding. It's also been a payout from a general branding perspective, so we're going to yield some really I think great results towards the end of the year.

Bill Chappell: Great. Thanks so much.

Great. Thanks, so much.

Operator: Thank you. Our final questions for this morning come from the line of Laurent Grandet with Guggenheim. Please proceed with your questions.

Thank you. Our final questions for this morning come from the line of Laurent Grande with Guggenheim. Please proceed with your question.

Thank you our final question for this morning comes from the line of Laura Brown day with Guggenheim. Please proceed with your questions.

Laurent Grandet: Hey, good morning, everyone. I do have two follow-up questions, actually. First, on the CapEx, and I appreciate you said you will give more details in the next earnings. You mentioned a $30 million CapEx for additional roasting capacity. Should we think about this year fully, or could that spread around, I mean, this year or next year?

Hey, good morning everyone. I do have two follow-up questions actually. First on the CAPEX, and I appreciate you said you will give more details in the next earnings, but you mentioned a $30 million CAPEX for additional roasted capacity. Should we think about this this year fully, or could I spread around this year and next year?

Good morning, everyone.

I do have to put up questions actually first on the Capex and I. Appreciate you said you will give more details.

In the next earnings but.

You mentioned, a $30 million capex for additional Rusty capacity should we think about this <unk> 40 or <unk> spread.

Spread around them that issue next year.

Tom Davin: Hey, Laurent, good morning. Tom here. I'm gonna have Greg cover that one in terms of the timing of the Manchester CapEx project.

Hey, Lauren good morning, Tom here I'm going to have Greg cover that one in terms of the timing of the Manchester Capex project, Yes, absolutely. It's what we talked about in the past is we're we're in the early stages of adding significant capacity and automation to our primary roasting facility in central Tennessee, Youre right that the total.

Hey, Laurent. Good morning. Tom here. I'm going to have Greg cover that one in terms of the timing of the Manchester CapEx project. Yeah, absolutely. What we talked about in the past is we're in the early stages of adding significant capacity and automation to our primary roasting facility in Central Tennessee. You're right that the total investment there is about $30 million.

Evan Hafer: Yeah. Yeah, absolutely. Yes, what we talked about in the past is we're in the early stages of adding significant capacity and automation to our primary roasting facility in central Tennessee. You're right that the total investment there is about $30 million. What we've said in the past is that about $13 to 14 million of that investment is gonna occur in fiscal or calendar and fiscal 2022, with the balance in 2023.

Investment there is about $30 million, while we've said in the past is that about $13 million to $14 million of that investment is going to occur in fiscal <unk>.

What we've said in the past is that about 13 to 14 million of that investment is going to occur in fiscal or in calendar fiscal 2022 with the balance in 2023.

In calendar in fiscal 2022 with the balance in 2023.

Laurent Grandet: Okay. Thanks. Then, I mean, like to come back to your guidance. I mean, as you expect still, I mean, to have an EBITDA positive towards the end of the year. Especially as Q2 will be very similar to Q1, you will need in H2 to have either greater gross margin, which I think will be challenging, especially as you will have more ready-to-drink in your sales and also 15 outposts at the low end of the 15 and 20. If gross margin is not getting any greater because of that, could you probably give a bit more guidance in terms of marketing, sales, and G&A? Because this

OK. Thanks. And then, I mean, I'd like to come back to your to your to your guide. I mean,

Okay. Thanks.

And then I mean.

<unk> like to come back to your to your guide.

as you expect to have any beta positive towards the end of the year.

How did you expect.

To have an EBITDA positive towards the end of the year. So <unk>.

especially as the second quarter will be very similar to the first quarter. You will need in the second half to have either greater cross-margin, which I think will be challenging, especially as you will have more ready to drink.

Especially as the second quarter would be very similar to the first quarter.

You would need in the second half to have either greater gross margin, which I think could be challenging, especially as you will have more ready to drink.

in your sales and also 15 outposts at the low end of the 15 and 20. So if gross margin is not getting any greater because of that, could you probably give a bit more guidance in terms of marketing sales and GNA?

In yourselves.

And also 15.

Post at the low end of the 50% in 2000. So if gross margin is not getting any greater because of that.

Could you please give a bit more guidance in terms of marketing sales and G&A because.

Laurent Grandet: The upside will probably come from those lines.

the upside will probably come from those lines.

This the upside we'd probably come from from those lines.

Speaker 16: I'm happy to. Just reiterating what Tom said earlier, there's really three components to how we will drive to that break even or slightly positive adjusted EBITDA for the year. One is continued pricing actions. We've mentioned examples like ready-to-drink, which we announced, and it'll take effect in June. We'll see some pretty meaningful impact from pricing in RTD in the H2. We're continuing to evaluate pricing actions in other channels that could drive additional benefit. The second lever is productivity, and we're beginning to see some of the benefits of these productivity initiatives with a lot more to come.

Evan Hafer: I'm happy to. Just reiterating what Tom said earlier, there's really three components to how we will drive to that break even or slightly positive adjusted EBITDA for the year. One is continued pricing actions. We've mentioned examples like ready-to-drink, which we announced, and it'll take effect in June. We'll see some pretty meaningful impact from pricing in RTD in the H2. We're continuing to evaluate pricing actions in other channels that could drive additional benefit. The second lever is productivity, and we're beginning to see some of the benefits of these productivity initiatives with a lot more to come.

Yeah, I'm happy to, and just reiterating what Tom said earlier, there's really three components to how we will drive to that break-even or slightly positive adjusted EBITDA for the year. One is continued pricing actions. We've mentioned examples like Ready to Drink, which we announced it'll take effect in June .

Yes, Im happy too and just reiterating what Tom said earlier, there's really three components to how we will drive to that breakeven or slightly positive adjusted EBITDA for the year. One is continued pricing actions. We've mentioned examples like ready to drink, which which we announced.

And it will take effect in June and so we will see some pretty pretty meaningful impact from pricing in our TD in the back half of the year, we're continuing to evaluate pricing actions in other channels that could draw.

And so we'll see some pretty meaningful impact from pricing in RTD in the back half of the year. We're continuing to evaluate pricing actions in other channels that could drive additional benefit.

Drive additional benefit the second lever is productivity and we're beginning to see some of the benefits of these productivity initiatives with a lot more to come in in the past we've talked about we've been so hyper focused on growth and standing up new businesses, whether it's ready to drink bringing on <unk>.

The second lever is productivity, and we're beginning to see some of the benefits of these productivity initiatives with a lot more to come. In the past we've talked about, we've been so hyper-focused on growth and standing up new businesses, whether it's ready-to-drink.

Speaker 16: In the past, we've talked about we've been so hyper-focused on growth and standing up new businesses, whether it's ready-to-drink, bringing on other wholesale partners, or standing up our Outposts. There hasn't been near as much focus on productivity. We've been really balanced, I think, this year in terms of, yes, we're still very, very focused on growth, and we're growing significantly in the Outposts and the wholesale channels, but we're also paying a lot of attention to these productivity initiatives. We've brought in outside resources to assist. The point of all that is there's meaningful productivity opportunities, and we'll start to realize those benefits in the back half of the year.

Laurent Grandet: In the past, we've talked about we've been so hyper-focused on growth and standing up new businesses, whether it's ready-to-drink, bringing on other wholesale partners, or standing up our Outposts. There hasn't been near as much focus on productivity. We've been really balanced, I think, this year in terms of, yes, we're still very, very focused on growth, and we're growing significantly in the Outposts and the wholesale channels, but we're also paying a lot of attention to these productivity initiatives. We've brought in outside resources to assist. The point of all that is there's meaningful productivity opportunities, and we'll start to realize those benefits in the back half of the year.

bringing on other wholesale partners, standing up our outposts.

Other wholesale partners standing up our outposts and so there hasnt been near as much focus on productivity. We've been really balanced I think this year in terms of yes, we're still very very focused on growth and we're growing significantly in the outputs into the wholesale channels, but we're also paying a lot of attention to these productivity initiatives we brought in.

And so there hasn't been near as much focus on productivity.

We've been really balanced, I think, this year in terms of, yes, we're still very, very focused on growth, and we're growing significantly in the outposts and the wholesale channels. But we're also paying a lot of attention to these productivity initiatives. We've brought in outside resources to assist, and so the point of all that is there's meaningful productivity.

Outside resources to assist and so the point of all that is there a meaningful productivity.

opportunities and we'll start to realize those benefits in the back half of the year. And then the third component too is really around volume and so that volume to be incremental to our current revenue outlook of $315 million, we've got line of sight to some real upside from a ready to drink perspective and our expectation in coming quarters, we can talk more about that. Okay. Okay, good night.

Opportunities and we will start to realize those benefits in the back half of the year and then the third component to it is really around volume and so that would be volume to be incremental to our current revenue outlook of $315 million.

Speaker 16: The third component too is really around volume, and so that volume will be incremental to our current revenue outlook of $315 million. We've got line of sight to some real upside from a ready-to-drink perspective. You know, our expectation in the coming quarters, we can talk more about that.

Evan Hafer: The third component too is really around volume, and so that volume will be incremental to our current revenue outlook of $315 million. We've got line of sight to some real upside from a ready-to-drink perspective. You know, our expectation in the coming quarters, we can talk more about that.

We've got line of sight to some some real upside from a ready to drink perspective.

Our sorry, our expectations in coming quarters, we can talk more about that.

Laurent Grandet: Okay. Goodbye, guys.

Okay. Good luck guys.

Tom Davin: Thanks, Laurent.

Thanks, Laura.

Operator: Thank you. That is all the time we have for questions today. I would now like to turn the call back over to Tom Davin for closing comments.

Thank you. That is all the time we have for questions today. I would now like to turn the call back over to Tom Davin for closing comments.

Thank you that is all the time, we have for questions today I would now like to turn the call back over to Tom Davin for closing comments.

Tom Davin: Thank you everyone for joining our Q1 earnings call. As you've seen, we're making progress on a number of key strategic initiatives. We're addressing capital capacity and leadership constraints. We're investing most importantly to drive growth, and we're gaining more and more proof points that the power of the omni-channel model is working well for Black Rifle Coffee. Thank you, everyone.

Thank you everyone for joining our Q1 earnings call. As you've seen, we're making progress on a number of key strategic initiatives. We're addressing capital capacity and leadership constraints. We're investing most importantly to drive growth and we're gaining more and more proof points that the power of the omni-channel model is working well for Black Rifle Coffee. Thank you everyone.

Thank you everyone for joining our Q1 earnings call as you've seen we're making progress on a number of key strategic initiatives, we're addressing capital capacity and leadership constraints. We're investing most importantly to drive growth and we're gaining more and more proof points that the power of the Omnichannel model.

Is working well for Blackrock for coffee. Thank you everyone.

Operator: Thank you. This does conclude today's teleconference. We appreciate your participation. You may disconnect your lines at this time. Enjoy the rest of your day.

Thank you. This does conclude today's teleconference. We appreciate your participation. You may disconnect your lines at this time. Enjoy the rest of your day.

Thank you. This does conclude today's teleconference. We appreciate your participation you may disconnect. Your lines at this time enjoy the rest of your day.

Q1 2022 BRC Inc Earnings Call

Request a DemoDemo

BRCC

Black Rifle Coffee Company

Earnings