BRC Inc.

Greetings. Welcome to the Black Rifle Coffee Company 2Q23 earnings call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the phone presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded. I'll now turn the conference over to your host, Karen Ados. You may begin.

Good afternoon, everyone. Thank you for joining Black Rifle Coffee Company's conference call to discuss our second quarter 2023 financial results, which were released today and can be found on our website at ir.blackriflecoffee.com. With me on the call today is Evan Hafer, founder and CEO, Tom Davin, co-CEO, and Greg Iverson, our chief financial officer. We will also have Chris Mondaluski, our new president, as well as Mark Weinstein, our interim CFO, on the Q&A portion of today's call. Before we get started, I'd 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 our risks related to our business, please see our previous filings with the SEC. This call will also contain non-GAAP financial measures, such as adjusted EBITDA. Reconciliations of these non-GAAP measures to the most comparable GAAP measures 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 CEO of Black Rifle Coffee Company.

Evan? Thanks, Tanner, and good afternoon, everyone. From day one of starting Black Rifle Coffee Company in my garage, my core focus has been to create an authentic connection between our brand and our community, demonstrating to military veterans and first responders that we can build something that will last generations. We don't stray from our beliefs, and it can be felt by our customers who are looking for authenticity in a world where most brands don't stand for anything or change their beliefs based on whoever is yelling the loudest. As we've transitioned from a pure direct consumer business into an omnichannel CPG business, Black Rifle has proven to be a real American business success story. We're still early in our company's life cycle, but we've proven that our brand resonates with American public and we're excited to have all of our products show up in stores where our customers are shopping every day. Last year, we made the strategic decision to launch our products into food, drug, and mass. And to date, that decision has paid off. We've gone from a niche premium direct consumer coffee brand to the number one selling 12 ounce bag coffee sold in over 4,400 Walmart stores across America. This has all been done on the strength of our brand and word of mouth reviews. This excitement for the brand and being on shelf where over 30 million people a day shop has also increased our aided brand awareness from 20% to over 28% in the last year. While we're pleased with the 8% point increase, we have 72% left to go. Over the last four weeks with little to no marketing spend, Black Rifle Coffee represented 4.4% of total coffee sales in the largest coffee aisle within grocery and FTM. That 4.4% is only made up of 12 ounce bags and K cups or rounds, which is representative of only half of the total categories within the Walmart coffee aisle. Over the past six months, we've been working with Walmart to create new SKUs that we recently launched during their coffee reset that will begin to address the remaining 50% of the aisle. Although we were early in the reset period, we've seen our new product innovation further increase Walmart coffee sales. Tom will share the additional color in this section. As we mentioned in our last call, the success of our entry into grocery was going to be building on itself, and we would soon be launching additional FDM partnerships. Today, I'm excited to announce that we are shipping our product to our second national grocery chain and two other regional partners. We are deep in conversations with additional grocers and FDM accounts, and we will continue to roll out Black Rifle Coffee into the additional grocery chains during 2024. In order to capitalize on the growth opportunity of CPG, I knew we needed to bring additional talent to the team to elevate our brand to the next level. which is why we hired a new president and CMO, Chris Mondaluski. Chris has brought over 25 years of experience within the CPG industry, most recently as the chief growth officer at Mars Pet Care. And more importantly, he has been a coffee subscriber since 2015. He is intimately familiar with our brand, and he understands how to deliver the Black Rifle Coffee brand experience to our customer base, as well as expand our team into new cohorts, of potential customers. Chris and we focused on three main goals over the next year. Continue to aggressively lead the distribution expansion of our business across channels, especially in FD&M. Working hand in hand with me on the marketing and branding front to unlock marketing programs and expand into new customer groups. Working with Tom Davin and the rest of the business units to continue to drive efficiencies and be predictable across the business. Having Chris in this new role will allow me to get back to doing what I love, which is 100% focused on building and evolving the Black Rifle Coffee brand. I will be working on our large strategic partnerships of Black Rifle Coffee. More importantly, I will be 100% on the needs and wants of our customers. We are still very early in the cycle of Black Rifle Coffee, and I couldn't be more excited for the future. We also have Mons, our new president, and Mark Weinstein, our interim CFO. on the call to answer any additional questions you might have. Before I turn the call over to Tom to walk through the quarter, I want to say thanks to Greg Iverson on his last earnings call as our CFO. Greg was instrumental in getting this business ready for IPO and he's also done an amazing job the last three years. We will miss having him around the office and I want to wish him luck in his next mission. With that, I'll turn the call over to Tom. TD, go ahead.