San Antonio-tied Black Rifle Coffee is in legal hot water over allegations that it didn't pay royalties to an Ohio-based consulting firm that helped expand the brand into a ready-to-drink line of beverages.
The Utah-based coffee chain — which maintains corporate offices in both in San Antonio and Salt Lake City — had been working with Ohio's Strategy and Execution Inc. to develop its ready-to-drink coffee beverages, according allegations in a federal lawsuit filed in San Antonio by the consulting firm.
The partnership resulted in success for Black Rifle Coffee, “generating hundreds of millions of dollars in revenues,” according to the Feb. 3 suit. However, Strategy and Execution argues in its filing that Black Rifle backed out of paying royalties on the beverage line.
The Current reached out to a representative of Black Rifle Coffee for comment but received no response by press time.
As interest in the canned coffee drinks skyrocketed, royalty payments did too, eventually becoming a “multi-million-dollar financial obligation” for Black Rifle, Strategy and Execution argues in its petition. At that point, the coffee chain “began taking steps to distance itself” from the firm and those financial obligations, court documents claim.
Black Rifle currently owes hundreds of thousands of dollars in “unpaid, past-due royalties” but will also be obligated to pay “tens of millions of dollars in future royalties,” Strategy and Execution’s suit alleges.
Strategy and Execution is suing Black Rifle for breach of contract or anticipatory breach of contract and for refusal to pay the sales agents, according to its filing. The company also is requesting a court declaration that the firm is entitled to royalties during the initial term of the agreement.
Black Rifle Coffee first hit the San Antonio scene in 2020, before kicking off a rapid Texas and Midwest expansion in 2022. It now operates three locations in and around SA.
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Ohio firm sues San Antonio-tied Black Rifle Coffee, alleging it hasn't paid royalties
The Feb. 3 lawsuit alleges that Black Rifle currently owes hundreds of thousands of dollars in 'unpaid, past-due royalties.'
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Nina Rangel
Nina Rangel uses nearly 20 years of experience in the foodservice industry to tell the stories of movers and shakers in the food scene in San Antonio. As the Food + Nightlife Editor for the San Antonio Current, she showcases her passion for the Alamo City’s culinary community by promoting local flavors, uncovering...
