Athletic Brewing Company, a leading nonalcoholic brewer, has recently announced that it has raised an additional $50 million in equity financing in a round led by General Atlantic. The company’s founder and CEO, Bill Shufelt, expressed his excitement about the investment, stating that General Atlantic is expected to invest significantly beyond the initial $50 million. This new funding will be used to increase production capacity and expand offerings at global retailers to meet the growing demand for nonalcoholic beer.
Despite only offering nonalcoholic options, Athletic Brewing has managed to become the 10th largest U.S. craft brewery and the 20th largest overall U.S. brewing company, according to rankings by the Brewers Association. In fact, the company holds over 19% market share within the nonalcoholic beer category and is driving 32% of total nonalcoholic beer category growth, based on NielsenIQ data.
Shufelt revealed that revenue has more than doubled since their Series D funding round about 18 months ago. The Wall Street Journal also reported that the company’s valuation has doubled with this latest fundraising, reaching $800 million.
Athletic Brewing currently operates two brewing facilities in the U.S., one in Milford, Connecticut, and another in San Diego. The company recently announced the purchase of a third brewing facility in San Diego, which is expected to double their U.S. brewing capacity once operational.
The success of Athletic Brewing can be attributed to the growing health and wellness trends that are driving consumer interest in nonalcoholic beverages. Recent data by NCSolutions shows that more than 40% of Americans are actively trying to drink less alcohol by 2024. This percentage increases to 49% when surveying millennials and 61% for Generation Z.
Recognizing this trend, established beer companies like Heineken, Corona (owned by Constellation Brands), Budweiser (owned by Anheuser-Busch), and Guinness (by Diageo) have also introduced their own nonalcoholic beer offerings.
Shufelt emphasized that Athletic Brewing aims to provide people with beer they can enjoy throughout the week while feeling good about their choices. The company has invested over $100 million in manufacturing, which has resulted in a level of quality that sets them apart from other nonalcoholic beer options.
In conclusion, with the additional funding and increasing consumer demand for nonalcoholic beverages, Athletic Brewing Company is well-positioned to continue its growth and capitalize on the changing preferences of consumers. The company’s commitment to quality and its ability to tap into the health and wellness trends make it a key player in the nonalcoholic beer market.
