In an exciting development for the nonalcoholic brewing industry, Athletic Brewing Company has secured an additional $50 million in equity financing, with General Atlantic leading the round. This funding is expected to support the company’s expansion plans and increase production capacity to meet the growing demand for nonalcoholic beer. According to Athletic CEO Bill Shufelt, General Atlantic is poised to invest even more in the company beyond this initial round.
Despite only offering nonalcoholic options, Athletic Brewing has managed to carve out a significant market share for itself. Ranked as the 10th largest U.S. craft brewery and the 20th largest overall U.S. brewing company, Athletic holds over 19% market share within the nonalcoholic beer category and is driving 32% of total nonalcoholic beer growth, as per NielsenIQ data. The company’s revenue has more than doubled since its last funding round about 18 months ago, and its valuation has also doubled, now standing at $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 recently announced the purchase of a third brewing facility in San Diego, which is expected to help double its U.S. brewing capacity once operational. With the rising demand for nonalcoholic beverages, this new facility will enable Athletic Brewing to meet the growing needs of consumers and continue its expansion efforts.
The success of companies like Athletic Brewing can be largely attributed to the increasing health and wellness trends that are encouraging consumers to seek out nonalcoholic alternatives. More than 40% of Americans are actively trying to reduce their alcohol consumption, 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 offerings to cater to this growing market.
As the nonalcoholic beer market continues to expand, companies like Athletic Brewing are well-positioned to capitalize on this trend. By providing consumers with high-quality, nonalcoholic options that prioritize health and wellness, these companies are reshaping the way people think about beer consumption. With ongoing innovation and a commitment to sustainability, the future looks bright for the nonalcoholic brewing industry.