Summary:
- Athletic Brewing recently closed a $50 million equity financing round led by General Atlantic and other investors, bringing its valuation to around $800 million, as reported by The Wall Street Journal.
- The nonalcoholic beer company plans to utilize the capital for business expansion, including the acquisition of a third U.S. brewing facility and increasing product availability in retail stores.
- Since its establishment in 2018, Athletic has become the largest non-alcoholic brewery in the U.S., holding over 19% market share and driving 32% of category growth, based on NielsenIQ data.
Insight:
Founder Bill Shufelt faced challenges initially in gaining industry support for his nonalcoholic beer company. Despite early skepticism, Athletic has grown rapidly and attracted significant investments, ranking among the top craft breweries in the U.S. and experiencing over 60% growth in sales.
Major investors like Keurig Dr Pepper have shown confidence in Athletic, with a $50 million investment in 2022. The company has invested over $100 million in beer production and recently acquired a new manufacturing facility in San Diego to double its capacity.
As consumer interest in nonalcoholic options rises, Athletic aims to meet demand and lead the market. With increasing consumer preference for moderation in alcohol consumption, Athletic’s expansion plans align with shifting trends and preferences.
General Atlantic’s partnership and the new manufacturing facility in San Diego reflect Athletic’s commitment to innovation and growth in the nonalcoholic beer market. With a strong presence in retail and on-premise venues nationwide, Athletic is poised for further expansion domestically and internationally.
The evolving landscape of nonalcoholic beverages has seen established brands like Blue Moon, Guinness, and Corona introducing non-alcoholic versions of their popular drinks. Despite competition, Athletic remains a key player in the market, catering to consumers seeking healthier drinking options.