Athletic Brewing Company, a leading nonalcoholic brewer, made headlines with its recent announcement of raising an additional $50 million in equity financing. This round was led by General Atlantic, with expectations of further investment beyond the initial amount. The company, founded by CEO Bill Shufelt, has big plans for using this investment to expand its production capacity and offerings in order to meet the growing consumer demand for nonalcoholic beer.
Since its launch in 2018, Athletic Brewing has quickly risen to become the 10th largest U.S. craft brewery and the 20th largest overall U.S. brewing company, a remarkable feat considering it only offers nonalcoholic options. With over 19% market share in the nonalcoholic beer category, the company is also driving 32% of the total growth in this sector, according to NielsenIQ data. The recent funding round has not only doubled the company’s revenue but also its valuation, which now stands at an impressive $800 million.
Athletic Brewing currently operates two brewing facilities in the U.S., one in Milford, Connecticut, and the other in San Diego. The company has announced the purchase of a third brewing facility in San Diego, which is expected to double its U.S. brewing capacity once operational. With this increased production capacity, Athletic Brewing aims to further solidify its position as a leader in the nonalcoholic beer market.
The success of Athletic Brewing can be largely attributed to the growing health and wellness trends that are influencing consumer preferences. More than 40% of Americans are actively trying to drink less alcohol, with even higher percentages among millennials and Generation Z. This shift in consumer behavior has prompted established beer companies like Heineken, Corona, Budweiser, and Guinness to introduce their own nonalcoholic beer offerings to cater to this growing demand.
Athletic Brewing Company’s rapid growth and success in the nonalcoholic beer market demonstrate the company’s ability to capitalize on evolving consumer preferences. With a focus on providing high-quality nonalcoholic options that appeal to health-conscious consumers, the company is well-positioned to continue its expansion and remain a key player in the ever-changing beverage industry. As the trend towards healthier lifestyles continues to gain momentum, Athletic Brewing is poised to lead the way in redefining how modern adults approach their drinking choices.