Black Rifle Coffee Stock Is a Rapidly Growing Niche Pick in the Coffee Industry

  • Black Rifle Coffee Company (BRCC) has named Roland Smith, former Wendy's CEO, as executive chair, a move underlining its ambitions to keep growing its physical presence.
  • Black Rifle Coffee is a coffee company with an interesting story. It started as one man's passion and now has 285,000 subscribers. However, the unique brand might restrict growth in this competitive industry.
  • Overall, Black Rifle Coffee Company is a well-positioned company. With significant growth potential, BRCC stock is an attractive investment opportunity.
BRCC Stock - Black Rifle Coffee Stock Is a Rapidly Growing Niche Pick in the Coffee Industry

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Black Rifle Coffee Company (NYSE:BRCC), a niche coffee company that appeals to right-wing consumers, is making waves after naming former Office Depot (NASDAQ:ODP) and Wendy’s (NASDAQ:WEN) CEO Roland Smith as Executive Chairman. BRCC stock jumped in response to the news.

Smith will be working to open new brick-and-mortar locations and boost direct sales for businesses.

The Black Rifle Coffee Company has been around since February and is now beginning to find its feet in the coffee industry. The volatility of its stock prices is not all that surprising, but the quality of coffee made is.

The company is growing rapidly, hence generating substantial interest. There’s been a lot of interest in this company, which is a good sign for your investment. It is good to be patient and wait. Depending on the company, it’ll take a little longer before you see any substantial results.

In February, the company went public after a reverse merger. The shares were priced at $10 and shot up by 242% to $34 per stock. However, the stock price has fallen since then.

BRCC Black Rifle Coffee Company $9.2

You can chalk that down to the general market pessimism. BRCC is a riskier enterprise because it has a strong social message. Most investors are looking for companies to cater to the broadest audience possible. But that isn‘t the case with BRCC.

However, the coffee business has been growing at a very high pace. The coffee industry is competitive, but Black Rifle’s unique brand has a loyal following that can be valuable in this market. Considering its sharp decline, the time is ripe to invest in BRCC stock.

Efficient Sales Channels Is Propelling Rapid Growth

Black Rifle Coffee is composed of more than just a coffee company. It also offers a magazine and has started to become involved in political and cultural issues with its blog and social media presence.

The company has 285,000 coffee club subscribers and has a lot of cash flow. They started with subscriptions, which is also proving to be very helpful. Black Rifle Coffee has been opening up stores recently and is set to expand the number of physical locations soon.

Today, Black Rifle Coffee is opening up its business to retailers and partners around the country. The expansion will include some of the best-known chains in America like 7-11, Walmart (NYSE:WMT), and Publix. The company has seen incredible growth over the past year in terms of income and could use an even more efficient model to help continue its rise.

Black Rifle Coffee also offers a variety of apparel, accessories, and festive food items to help keep its brand flying high. Along with these products comes a brand that looks great in your local store and has an impact on the sales that support it. The company has partnered with Amazon Prime and its merchandise feature in one of the OTTs action series. This will boost the brand presence and help reach a greater audience.

Black Rifle Pros has been mentioned by President Donald Trump and Fox News for both its devotion to vets and its focus on first responders. The coffee company wants to hire 10,000 veterans — both those returning from active duty and military spouses. This is a policy that wins the hearts of conservatives and red states in the U.S., which helps them to retain their customer base.

Why Is BRCC Stock Dropping?

A big factor in the decline of BRCC stock is that they are having some difficulty with their brand identity. The company was founded by military veterans and has close links to conservative right-wing politics within America, which could be one reason for this issue.

Companies generally want to appeal to the broadest consumer base possible. By limiting itself to a particular niche, Black Rifle might box itself into a corner. There’s also the risk that the audience it once had might turn on it if it starts trying to reach out beyond its initial fanbase. Joel Baglole brought up this point in his piece where he notes that the company is facing some backlash after denouncing extremism in several media articles, most notably in a piece published in The New York Times.

Looking ahead, this is the biggest risk facing the company. How does it keep its existing customer base happy while reaching out to others that are not fans of its product?

The Bottom Line

Black Rifle Coffee Company’s niche approach has allowed it to stand out in the crowded coffee market, and its strong embrace of right-wing values has made it a favorite among conservatives.

Black Rifle Coffee Company is an attractive investment for several reasons. First, the company has a large and loyal customer base. Second, it is growing rapidly — revenues jumped almost 35% in the last quarter alone. Third, it is a unique brand that occupies a niche market.

Hence, Black Rifle Coffee Company is a well-positioned company with significant growth potential. For these reasons, BRCC stock is an attractive investment opportunity.

On the publication date, Faizan Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Faizan Farooque is a contributing author for InvestorPlace.com and numerous other financial sites. Faizan has several years of experience in analyzing the stock market and was a former data journalist at S&P Global Market Intelligence. His passion is to help the average investor make more informed decisions regarding their portfolio.


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