In a recent announcement, Athletic Brewing Company revealed that it has secured an additional $50 million in equity financing in a round led by General Atlantic. The company’s founder and CEO, Bill Shufelt, expressed his optimism about the partnership with General Atlantic, mentioning that the investment is expected to increase significantly in the future. This infusion of funds will be utilized to enhance production capacity and broaden the company’s offerings at global retailers, responding to the growing demand for nonalcoholic beer among consumers.
Growth and Expansion
Since its establishment in 2018, Athletic Brewing has made significant strides in the nonalcoholic beer market, positioning itself as the 10th largest U.S. craft brewery and the 20th largest overall U.S. brewing company. Despite exclusively focusing on nonalcoholic options, the company has captured over 19% market share within the nonalcoholic beer segment and is responsible for 32% of the total category growth, according to NielsenIQ data. With revenue doubling since its previous funding round 18 months ago, Athletic Brewing has seen its valuation soar to $800 million, indicating its rapid growth trajectory.
The success of Athletic Brewing can be attributed to the prevailing health and wellness trends that are encouraging consumers to opt for nonalcoholic beverages. Recent data by NCSolutions reveals that over 40% of Americans are actively seeking to reduce their alcohol consumption, a trend that is even more pronounced among millennials and Generation Z. Recognizing this shift in consumer preferences, established beer companies such as Heineken, Corona, Budweiser, and Guinness have also introduced their own nonalcoholic beer offerings to cater to the evolving market demands.
With the acquisition of a third brewing facility in San Diego, Athletic Brewing is poised to double its U.S. brewing capacity, paving the way for further growth and market penetration. The company currently operates two brewing facilities in Milford, Connecticut, and San Diego, with plans to capitalize on the rising popularity of nonalcoholic beer across the nation. By offering a range of high-quality nonalcoholic beer options, Athletic Brewing aims to provide consumers with beverages they can enjoy throughout the week while maintaining their commitment to health and wellness.
As Athletic Brewing embarks on its next phase of growth, fueled by the recent equity financing and a strategic partnership with General Atlantic, the company is well-positioned to capitalize on the burgeoning demand for nonalcoholic beer. With a track record of success, a strong market presence, and a commitment to innovation, Athletic Brewing is poised to lead the way in reshaping the modern beer industry and revolutionizing the way consumers approach their drinking choices. By staying aligned with consumer preferences and staying ahead of emerging trends, Athletic Brewing is set to continue its upward trajectory in the nonalcoholic beer market.
Leave a Reply