Athletic Brewing Company, a leading nonalcoholic brewer, made headlines with the announcement of an additional $50 million in equity financing led by General Atlantic. This round of financing is expected to be just the beginning, with General Atlantic showing interest in investing even more. The company’s CEO and founder, Bill Shufelt, expressed his excitement about the partnership with General Atlantic and the potential for significant growth in the future. This influx of capital will be used to expand production capacity and enhance the company’s offerings to meet the increasing demand for nonalcoholic beer in the global market.
Despite being a relatively young player in the industry, Athletic Brewing has quickly risen to become the 10th largest U.S. craft brewery and the 20th largest overall U.S. brewing company, solely focusing on nonalcoholic options. With over 19% market share within the nonalcoholic beer sector, Athletic is spearheading 32% of the total growth in the nonalcoholic beer category, according to NielsenIQ data. The company’s revenue has more than doubled since its Series D funding round 18 months ago, highlighting its rapid expansion and market success. The Wall Street Journal reported that the latest fundraising has doubled the company’s valuation to an impressive $800 million.
Athletic Brewing currently operates two brewing facilities in the U.S., located in Milford, Connecticut, and San Diego. The addition of a third brewing facility in San Diego is expected to double the company’s U.S. brewing capacity once operational. In the past year, Athletic sold over 3 million cases, totaling over 100 million cans, and generated revenue exceeding $90 million. The company is on track to surpass these figures this year, showcasing its continued growth and market appeal.
The success of Athletic Brewing can be largely attributed to the shifting consumer preferences towards health and wellness. With more than 40% of Americans actively trying to reduce their alcohol intake, the demand for nonalcoholic beverages is on the rise. This trend is even more pronounced among millennials and Generation Z, with 49% and 61% respectively expressing interest in consuming less alcohol. Established beer giants like Heineken, Corona, Budweiser, and Guinness have also recognized this trend and introduced their own nonalcoholic beer options to cater to this growing market.
In a statement, Bill Shufelt emphasized the company’s mission to provide consumers with a guilt-free option that they can enjoy any day of the week. Athletic Brewing is not just selling beer; it is selling a lifestyle that promotes balance, wellness, and social responsibility. With a commitment to quality, innovation, and consumer satisfaction, Athletic Brewing is well-positioned to continue its dominance in the nonalcoholic beer industry and pave the way for a new era of beer consumption.