Black Rifle Coffee Company CEO: 'People are hungry in the U.S. for a brand that represents them'
Black Rifle Coffee Company CEO and veteran Evan Hafer discusses his company going public via a SPAC deal and their objective to hire veterans and family of service members.
Video Transcript
EMILY MCCORMICK: Black Rifle Coffee company just announced today that it's going public via a SPAC merger. The deal is valued at about $1.7 billion and is expected to close in the first quarter of 2022. For more on this, we have Evan Hafer, CEO and founder of Black Rifle Coffee Company, with us now to discuss. And Evan, thank you so much for joining us today. Tell us a little bit more about this deal. Why now for this plan to go public? And what is your company's plans for the cash that will hit your balance sheet as a result of this deal?
EVAN HAFER: Yeah, I think now is important based on the timing. I think we looked at it for the last several years. This has always been a goal directly related to our mission of hiring 10,000 veterans. I think this is a good time for the company to announce this. With the partnership with Silver Box, they were aligned with our mission and our intent, specifically along the lines of our philanthropic endeavors. We want to capitalize on the inertia of the brand. Want to make sure that we can share the success of the company with the shareholders. And it felt like the right time for the company with the right partnership.
BRIAN SOZZI: Evan, Brian here. Of course, thank you for your service to this country. As part of this deal, you will get $225 million put on your balance sheet. Where do you plan to spend that money?
EVAN HAFER: Well, we've got two big growth initiatives for the company. Obviously, we're a hyper successful omnichannel company right now, but the big initiatives right now are going to be an outpost, AKA coffee shops and our ready to drink. Our ready to drink is right now sold at about 40,000 convenience stores nationwide. We'll be expanding those initiatives. The coffee shops are a really big component of the placement and the authenticity of the brand, being able to hire more veterans and serve the customers where they live. So those are the big two investment initiatives we'll be making over the next couple of years.
EMILY MCCORMICK: And Evan, I also wanted to ask, just in terms of location expansion, where are you seeing the biggest opportunities here? Because of course, there is considerable competition in the coffee space already and in the beverage space.
EVAN HAFER: Right, well, I think with Black Rifle Coffee, the difference is, is that we're an authentic American company. We're a true American success story. I think people are hungry in the United States for a brand that represents them and their success story. I think there's a sea of inauthenticity as far as in corporate America. Black Rifle, from my perspective, I started this company in my garage seven years ago. Before that, I was working in Afghanistan and Iraq. We founded it with a group of my other veteran friends.
I think people are hungry to go out and really experience a coffee company that represents their values and really is mission driven and dedicated towards giving back to the veteran community [INAUDIBLE]. It's something that we do and we strive for every day. It's not only serving a great cup of coffee, but it's also, what can we turn the coffee drinkers, what can we turn their dollars into as far as good philanthropic endeavors?
I think the big expansion and the big interaction is going to be within the coffee shops themselves, being able to experience the brand in a totally different way. The subscription is always going to be a really big component of the company. It's one of my favorites. I started this so I could deliver fresh roasted coffee direct to the doorstep. But now it's time for the next level of the company.
BRIAN SOZZI: Evan, what do you say to those critics who point to, you know, your marketing on the cans and your support for the police? I mean, do you just say to them that your brand just might not be for them?
EVAN HAFER: Well, first and foremost, I served this country for over 20 years. I served alongside, I think, some of the most heroic and service driven people this country has ever produced, either overseas or here. A lot of those veterans transition into law enforcement and first responders. There's a group of people that truly love their country, and they're passionate about serving their communities. Those are my people. I think there's a lot of people in the United States where that represents their values and their connection.
To be honest with you, I'm not really that concerned. I love this country. I'm never ashamed to say that. I love the wide variety of people that have served this country in varying capacities. I love connecting with my customers across the country. This is not just about, how big can the company get? This is about connecting with the customer and then giving back with a real mission to the veteran community. I can't think of a better country to celebrate that story in.
BRIAN SOZZI: And I'm sure you're going to get these questions now that you will be a public company. But I mean, should your brand be associated with that far right community, or that's not the case?
EVAN HAFER: Well, the brand is associated with people that love America. And they're not ashamed about that. I think this country has given me so many different opportunities. I grew up in a very rural community in northern Idaho, generations of loggers. And I've been able to travel the world and experience so many different countries and so many different things, directly representative serving the American Constitution.
It's time for me to give that back. And the customers that believe in that mission and believe in the American success story, they're going to be attracted to this regardless of political party affiliation. I think there's a lot of people that truly do love to celebrate America, and that's me.
