Athletic Brewing Company, a leading nonalcoholic brewer, has recently secured an additional $50 million in equity financing in a round led by General Atlantic. This funding is expected to further support the company’s growth and expansion plans. In fact, Athletic CEO and founder Bill Shufelt expressed optimism that General Atlantic would make even larger investments in the future.
With the new financing, Athletic Brewing Company intends to enhance its production capacity and broaden its product offerings at global retailers. The aim is to cater to the increasing demand for nonalcoholic beer among consumers. By focusing on transforming the drinking habits of modern adults and winning over skeptics, the company hopes to capitalize on a long-term trend in the beverage industry.
Since its establishment in 2018, Athletic Brewing has made significant strides in the market, becoming the 10th largest U.S. craft brewery and the 20th largest overall brewing company. Despite specializing in nonalcoholic options, the company has captured over 19% market share in the nonalcoholic beer segment and is responsible for 32% of the category’s growth. This success has translated into substantial revenue growth, with figures doubling since the last funding round.
Company Expansion
Athletic Brewing Company currently operates two brewing facilities in the U.S., with plans to open a third facility in San Diego. The addition of this new facility is expected to double the company’s brewing capacity in the country. By strategically expanding its production capabilities, Athletic aims to meet the growing demand for its products and solidify its position in the market.
Health and Wellness Trends
The company’s success can be attributed to the increasing focus on health and wellness among consumers, leading to a growing interest in nonalcoholic beverages. Recent data indicates that more than 40% of Americans are actively looking to reduce their alcohol consumption. This trend is even more pronounced among millennials and Generation Z, with percentages of 49% and 61%, respectively. Recognizing this shift in consumer preferences, established beer companies have also introduced their own nonalcoholic beer offerings to cater to this growing market.
Future Outlook
As the nonalcoholic beer market continues to expand, Athletic Brewing Company is well-positioned to capitalize on the trend and further strengthen its presence in the industry. With a clear focus on quality, innovation, and consumer satisfaction, the company is poised for continued growth and success in the years to come. By staying true to its vision of providing consumers with a healthier alternative for enjoying beer, Athletic Brewing is set to make a lasting impact on the beverage market.