Athletic Brewing Company, a pioneer in the nonalcoholic beer market, recently secured an additional $50 million in equity financing, led by the investment firm General Atlantic. This influx of funds marks a significant endorsement of Athletic’s mission to revolutionize the nonalcoholic beer industry. According to the company’s enthusiastic CEO and founder, Bill Shufelt, this latest round of financing is just the beginning, with General Atlantic expected to increase its investment substantially in the future.
Founded in 2018, Athletic Brewing has rapidly ascended to notable ranks within the brewing industry, now standing as the 10th largest craft brewery in the U.S. and the 20th largest brewery overall, a remarkable feat given its exclusive focus on nonalcoholic products. The company’s growth is propelled by an increasing consumer shift towards healthier lifestyle choices, with many opting for alcohol-free alternatives.
Athletic Brewing, the biggest nonalcoholic beer brand in the U.S., closed a financing round valuing it at around $800 million, roughly double its valuation from two years ago https://t.co/o8nAzcaqs7 via @WSJ
— Behind the Buyout (@BehindTheBuyout) July 9, 2024
Athletic Brewing dominates the nonalcoholic beer segment with a 19% market share and is responsible for driving 32% of the category’s growth. This impressive market presence is supported by robust sales figures, with over 3 million cases—or 100 million cans—sold last year, generating revenue exceeding $90 million. These numbers are on track to climb even higher this year, reflecting a burgeoning demand.
The company’s expansion plans are ambitious. With the recent procurement of a third brewing facility in San Diego, Athletic Brewing aims to double its brewing capacity in the U.S. This expansion will support its strategy to widen its product availability globally, catering to an ever-growing base of health-conscious consumers.
CT’s Athletic Brewing gets $50M in fresh backing and San Diego location for nonalcoholic beverages https://t.co/c2vel6HP9h
— Record-Journal (@Record_Journal) July 9, 2024
The move by established giants like Heineken, Corona (owned by Constellation Brands), Budweiser (Anheuser-Busch), and even Guinness (Diageo) to introduce nonalcoholic beers underscores the industry-wide recognition of this growing trend. Athletic Brewing’s innovative approach, which includes investing over $100 million in manufacturing to enhance quality, sets it apart in a market increasingly crowded with traditional beer brands pivoting to nonalcoholic offerings.
Key Points:
- Athletic Brewing Company raised an additional $50 million in equity financing led by General Atlantic, reflecting strong investor confidence.
- The company plans to use the new funds to double its production capacity and expand its global retail presence, meeting the rising demand for nonalcoholic beers.
- Since its inception in 2018, Athletic has grown to become the 10th largest craft brewery in the U.S., exclusively producing nonalcoholic beers.
- Athletic Brewing holds a significant portion of the nonalcoholic beer market, driving a third of the sector’s growth, with revenues soaring past $90 million last year.
- The growing interest in health and wellness trends is driving the surge in nonalcoholic beer consumption, prompting traditional breweries to enter the market with their offerings.
Lap Fu Ip – Reprinted with permission of Whatfinger News
