Black Rifle Coffee Co. has signed Keurig Dr Pepper (KDP) to sell and distribute its Black Rifle Energy RTDs.
The US coffee business is due to launch the RTDs in the last quarter of the year. The drinks will come in four – yet to be announced – flavour variants, each with 200 milligrams of caffeine per 450ml (16-ounce) can.
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KDP will sell and distribute the Black Rifle Coffee RTD product within the “majority of its company-owned direct store territories” in the US.
“Our collaboration with KDP enables us to expand our retail presence, accelerate household reach, and enhance our commercial operations,” Black Rifle Coffee CEO Chris Mondzelewski said. “We’re equally proud to partner with a company that shares our mission of giving back to the veteran community.”
Black Rifle Coffee was founded in 2014 by US army veteran Evan Hafer.
The production of the company’s RTDs, coffee rounds and bagged products is done by co-packers.
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By GlobalDataLast year, Black Rifle Coffee and KDP worked together on the creation of a namesake K-Cup range.
Speaking on the new sales and distribution agreement, Andrew Archambault, KDP’s president of US refreshment beverages, said: “This partnership is a win for consumers and for both of our companies. Black Rifle Coffee’s strong brand and passionate following are distinct advantages that position it for success in the energy space.”
The financial terms of the sales and distribution agreement were not disclosed.
In 2023, Black Rifle Coffee took in revenue of $395.6m, up from $301.1m year on year.
Net losses stood at $56.7m, reduced from 2022’s losses of $338m.
The group has three main sales channels: wholesale, DTC and an ‘outpost channel’, which consists of company-operated and franchised retail sites.
In 2023, the group saw its wholesale sales jump 88.6% to $225.1m. The division’s customers include Walmart and specialist retailers.
DTC sales fell 9.9% to $143.2m. In its 2023 annual report, Black Rifle Coffee said it had 225,800 active ‘Coffee Club’ subscribers.
Sales from the ‘outpost channel’ grew 19.2% to $27.3m.
In 2023, KDP generated net sales of $14bn, up 10.8% year on year. It had a net income of $1.4bn, down 33.1% on the previous year.
Its US coffee segment had net sales of $4.3bn for the year, up 5.2%. However, its income from operations for US coffee was down 7% at $1.2bn.
