Strategy and Execution Inc sue Black Rifle Coffee for failing to pay royalties
February 21 - 2023
Coffee Geography Magazine
A coffee company formed by U.S. Army Veterans, Black Rifle Coffee Co. (BRCC) is sued by Strategy and Execution Inc., an Ohio consulting firm that specializes in the beverage industry for alleged breach of contract, among other complaints.
The lawsuit was filed in the Western District of Texas U.S. Court and the complaint alleges Black Rifle Coffee Co. has hundreds of thousands of dollars in "unpaid, past-due royalties" on the successful sales of a line of coffee beverages, energy drinks, and energy supplements. That figure "continues to grow," the complaint says, and will reportedly grow to "tens of millions of dollars in future royalties," the consulting company says.
Plaintiff: Strategy and Execution, Inc.
Defendant: Black Rifle Coffee Company LLC
Case Number: 5:2023cv00135
Filed: February 3, 2023
Court: US District Court for the Western District of Texas
Presiding Judge: Fred Biery
Nature of Suit: Contract: Other
Jury Demanded By: Plaintiff
The product line's success pushed Black Rifle Coffee Co. to go public last year, the report says, and the company is suing for breach of contract and/or anticipatory breach of contract, refusal to pay the sales agents, and a court declaration that the firm is entitled to royalties during the initial term of the agreement.
The companies are reportedly tied into a four-year agreement that went into effect on January 1, 2020. Under the agreement, the report says, the consulting firm would receive a $30,000 fee each month and receive a unit royalty of 2 cents for each ready-to-drink can manufactured each month.
"Black Rifle is looking to solve this matter with the parties directly involved," according to a person familiar with the lawsuit.