Safe Bet? Champion's Growth Masks Parent Company's Strategic Gamble

NEW YORK, NY – December 03, 2025 – In an era of digital anxieties and intangible assets, a powerful counter-trend is emerging: a consumer flight to tangible, physical security. This shift is vividly illustrated by a recent announcement from Champion Safe Company, a subsidiary of American Rebel Holdings (NASDAQ: AREB). The company reported a nearly 30% year-over-year surge in orders from Courtesy Sporting and Pawn, a long-standing dealer in Carlsbad, New Mexico. While on the surface this is a story about a successful local partnership, it opens a window into broader market dynamics, consumer sentiment, and the complex strategic balancing act facing its parent company.

The success at Courtesy Sporting and Pawn isn't just a random sales spike; it's a reflection of a specific demand for what Champion Safe CEO Tom Mihalek calls "real American Made Steel, real weight, and real value." This sentiment is directly echoed by the dealer. "Champion offers the best value, pound for pound and dollar for dollar, in the safe industry," said Shawn Mitchell, owner of the Carlsbad retailer. His strategy of offering a "real safe for each price point" directly counters the influx of "lightweight imports" from Asian manufacturers, tapping into a customer base that prioritizes durability and domestic production over minimal cost.

Main Street Demand Meets American Steel

The story unfolding in southeastern New Mexico is a microcosm of a national trend. The global gun safe market, valued at over $3 billion, is projected to grow at a steady clip of over 7% annually through 2030. This growth is propelled by a confluence of factors, including rising firearm ownership, stricter state-level storage regulations, and a pervasive sense of unease that drives individuals to secure not just firearms, but all high-value personal assets.

Courtesy Sporting and Pawn, with its 25-year history and deep community roots, is the perfect litmus test for this market. As the Carlsbad region enjoys economic expansion, its customers are increasingly investing in robust security. Mitchell’s decision to increase his Champion orders reflects a direct response to this demand. He's not just selling a steel box; he's selling peace of mind, built on the promise of heavy-gauge American steel and a lifetime warranty—a powerful combination in the current climate.

For Champion, partnerships with established, independent retailers like Courtesy are a cornerstone of its strategy. They provide a knowledgeable, trusted sales channel that can effectively communicate the value proposition of a heavier, better-built product. As Mihalek stated, Courtesy is an "ideal partner—knowledgeable, customer-driven, and dedicated to long-term relationships." This grassroots approach allows the brand to build loyalty in a market often dominated by big-box retailers and online discounters.

A Steel Foundation for a Patriotic Empire?

While Champion Safe celebrates this localized success, its performance is critically important for a much larger, more ambitious corporate narrative. Champion is a key subsidiary of American Rebel Holdings, Inc. (AREB), a company striving to build a diversified "patriotic lifestyle brand." This portfolio extends far beyond security products, encompassing ventures into American Rebel Light Beer and branded apparel.

From a strategic perspective, Champion Safe is the bedrock of this empire-in-the-making. It is the most established and tangible asset in the AREB portfolio, representing the "security" pillar of the patriotic lifestyle it promotes. The brand's emphasis on 100% American-made steel and domestic manufacturing provides the authenticity that the parent company's broader branding relies upon. Positive news, such as the impressive growth from a key dealer, serves as crucial validation for the entire corporate strategy. It demonstrates that the core product resonates strongly with a target demographic, providing a potential halo effect for the company's other, newer ventures in crowded consumer markets like beer and apparel.

The success of the safe division is therefore not just about its own profit and loss statement; it's about generating the revenue, credibility, and investor confidence needed to fund and sustain the diversification gambit. Each successful dealer relationship and every positive sales report helps build the case that the "patriotic brand" concept has legs beyond a single product category.

Contrasting Growth with Financial Headwinds

However, for investors and market analysts, the glowing report from a single dealer must be weighed against the broader financial landscape of the parent company. A look at American Rebel Holdings' public filings reveals a more challenging picture. The company has a history of recurring losses, reporting a net loss of $1.5 million for the first nine months of 2024. More significantly, its annual report for the fiscal year ended December 31, 2023, included a warning from its accounting firm that raised "substantial doubt about its ability to continue as a going concern."

This stark financial reality doesn't invalidate the success at Courtesy Sporting and Pawn, but it places it in a critical context. The nearly 30% ordering growth from one dealer, while impressive for that relationship, is a micro-level positive against a macro-level struggle for profitability and stability. Consolidated revenue for AREB was actually down slightly in the first three quarters of 2024 compared to the prior year, indicating that localized successes have not yet been sufficient to turn the overall financial tide.

This makes press releases like this a vital tool in AREB's strategic communications. By highlighting a tangible win and showcasing a product line with clear market demand, the company can project strength and forward momentum to investors, even as it navigates significant financial headwinds. The challenge for AREB is to replicate the success seen in Carlsbad across its entire dealer network and, more importantly, translate that brand resonance into sustainable, profitable growth across its diversified portfolio.

Competing in a Crowded Field

Champion Safe's ability to thrive in specific segments is also a testament to its savvy market positioning within a highly competitive industry. The American-made safe market is not a vacuum; it is dominated by established players like Liberty Safe, the market leader, and premium brands such as Fort Knox, known for their uncompromising build quality and higher price points.

Champion has carved out a strategic niche by straddling the line between premium construction and perceived value. The message, as articulated by dealer Shawn Mitchell, is about getting the most "pound for pound and dollar for dollar." This positions Champion as a formidable contender against both high-end domestic brands and cheaper, lighter imported alternatives. The brand’s unwavering focus on "100% American-made, high-strength steel" is a key differentiator that appeals directly to a patriotic consumer base that is often skeptical of foreign manufacturing, especially for a product intended to provide ultimate security.

By focusing on this value-driven, American-made message, Champion can effectively connect with dealers and customers who share those priorities. While it may not have the sheer scale of Liberty or the top-tier price point of Fort Knox, its focused strategy allows it to win in key regional markets. The growth in Carlsbad demonstrates that when the product, the dealer, and the local market demand align, Champion's formula is a potent one, providing a crucial, steel-plated foundation as its parent company continues to navigate a complex and uncertain strategic path.