Non-Alcoholic Beer Gaining Traction in the Market
The CEO of Athletic Brewing, Bill Shufelt, highlighted the success of large beer companies in expanding their core offerings into the non-alcoholic space. This shift has provided a significant boost to the fast-growing category.
Shufelt noted, “Many flagship brands in our category now rival their alcohol counterparts, signaling a strong foundation for the non-alcoholic beer market.”
Just a few years ago, flagship brands were absent from the non-alcoholic segment. Today, major brewers like Molson Coors, Diageo, Constellation Brands, Heineken, and AB InBev have introduced non-alcoholic versions of their popular brews.
The U.S. currently boasts around 150 non-alcoholic beer brands, a number that continues to grow.
When Athletic Brewing launched in 2018, non-alcoholic beer accounted for only 0.3% of total beer sales. Today, that figure has increased to approximately 1.5%, indicating a rising trend in consumer preferences.
Several factors contribute to the rising popularity of non-alcoholic beer, including shifting drinking habits, busy lifestyles, and a growing emphasis on health and wellness. Interestingly, over 80% of Athletic’s consumers still consume alcoholic beverages.
Retail sales of non-alcoholic beer in the U.S. reached $1.2 billion last year. Shufelt is optimistic that the category could eventually capture up to 20% of the $100 billion beer market within the next decade.
The health and wellness trend shows no signs of slowing down, prompting retailers to expand their non-alcoholic offerings. Some national retailers already report that non-alcoholic beer accounts for 20% of their beer sales.
With rapidly growing sales, Athletic has emerged as the leading non-alcoholic beer company, capturing a 20% market share. The company’s off-premise sales have surged by over 65% compared to the previous year.
Industry experts praise Athletic for its brand, packaging, and product quality. The company’s disciplined approach to product development has been key to its success.
As consumer interest in health and wellness continues to grow, Athletic remains well-positioned for long-term success. The company’s strategic investments in production facilities and ongoing innovation efforts underscore its commitment to the non-alcoholic beverage market.
Looking ahead, Athletic may explore other non-alcoholic beverages beyond beer. However, the company remains focused on its core offerings to sustain its growth trajectory.
Despite attracting interest from beverage giants like Keurig Dr Pepper, Shufelt remains dedicated to the long-term vision for Athletic. The company’s recent funding round included a significant investment, but Shufelt is adamant about prioritizing the brand’s future over short-term deals.
Shufelt concluded, “The possibilities are endless for us. It’s a culmination of my life’s work, and I believe the future holds immense opportunities for our brand and the non-alcoholic category.”