BRC Inc.

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. The 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 Dahl, Vice President of Investor Relations. Thank you. You may begin.

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. 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. 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'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 Coffee Company.

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 Rifle 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 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. People always ask me, what has made Black Rifle Coffee so successful over the past eight years? And 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. It's the community that we have built around the brand. The community started organically as myself, Matt Best, and 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. 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. 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. 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 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. This quarter, we have added two key strategic senior leadership hires. We brought on Heath Nelson, our new Chief Retail Officer. Heath comes to BRCC from Just Food for Dogs, where he was the CEO of a fast-growing omnichannel business with over 300 retail locations across the United States. Heath previously led operations for Nestle Partners, 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 outposts. 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 Strauss & Co., 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 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 omnichannel 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. 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. 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. 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 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. 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. 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 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 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. 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.