Athletic Brewing Company, a leading nonalcoholic brewer, made headlines recently with the announcement of raising an additional $50 million in equity financing. This funding round was led by General Atlantic, with the potential for even greater investment in the future. The company’s CEO and founder, Bill Shufelt, expressed enthusiasm about the partnership with General Atlantic and the company’s plans for expansion.
Since its inception in 2018, Athletic Brewing has swiftly emerged as a key player 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 only offering nonalcoholic options, the company has secured over 19% market share within the nonalcoholic beer category and is driving 32% of total category growth, according to NielsenIQ data.
According to Shufelt, the company has experienced remarkable financial growth, with revenue more than doubling since the previous funding round 18 months ago. The Wall Street Journal reported that Athletic Brewing’s valuation has also doubled with the latest fundraising, reaching an impressive $800 million. These financial achievements reflect the company’s strong market position and growing consumer interest in nonalcoholic beverages.
With the latest infusion of capital, Athletic Brewing intends to expand its production capacity and enhance its offerings at global retailers to meet the escalating demand for nonalcoholic beer. The company currently operates two brewing facilities in the U.S., with plans to double its brewing capacity through the acquisition of a third facility in San Diego. This expansion strategy aligns with the company’s goal of meeting the evolving needs of consumers seeking healthier beverage options.
Market Trends
Athletic Brewing’s success can be attributed to the growing health and wellness trends that are influencing consumer preferences. Recent data by NCSolutions revealed that over 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 beer offerings to cater to changing preferences.
Athletic Brewing Company’s recent financing milestone underscores its position as a rising star in the nonalcoholic beer market. With a strong focus on innovation, quality, and consumer health, the company is well-positioned to capitalize on the growing demand for nonalcoholic beverages. As the company embarks on its next phase of growth, the partnership with General Atlantic and its commitment to expansion are poised to drive further success in the evolving beverage industry landscape.
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