Athletic Brewing Company, a leading nonalcoholic brewer, has recently secured an additional $50 million in equity financing, with General Atlantic leading the round. This investment marks a significant milestone for the company as it prepares to expand its production capacity and offerings to meet the growing demand for nonalcoholic beer in the global market.
Since its launch in 2018, Athletic Brewing has quickly risen to become one of the top players in the nonalcoholic beer space. Despite only offering nonalcoholic options, the company has become the 10th largest U.S. craft brewery and the 20th largest overall U.S. brewing company. With a market share of over 19% in the nonalcoholic beer category and driving 32% of total growth in the segment, Athletic Brewing is clearly gaining traction among consumers.
Financial Performance and Valuation
According to CEO and founder Bill Shufelt, Athletic Brewing’s revenue has more than doubled since its last funding round 18 months ago. The company’s valuation has also doubled, reaching $800 million, following the latest round of fundraising. These impressive financial figures reflect the company’s rapid growth and strong market position within the nonalcoholic beer industry.
Expansion Plans
With the new investment, Athletic Brewing plans to expand its production capacity by acquiring a third brewing facility in San Diego. This new facility is expected to double the company’s U.S. brewing capacity, allowing it to meet the increasing demand for its products. By strategically expanding its operations, Athletic Brewing is positioning itself for further growth and success in the market.
The success of Athletic Brewing can be attributed to the growing health and wellness trends that are driving consumer interest in nonalcoholic beverages. Recent data shows that more than 40% of Americans are actively trying to drink less alcohol, with even higher percentages among millennials and Generation Z. This shift in consumer behavior has created a favorable environment for nonalcoholic beer brands like Athletic Brewing to thrive.
Competition and Market Landscape
Athletic Brewing is not the only player in the nonalcoholic beer market, as established beer companies like Heineken, Corona, Budweiser, and Guinness have also introduced their own nonalcoholic offerings. However, Athletic Brewing sets itself apart by focusing solely on nonalcoholic products, catering to consumers looking for healthier alternatives to traditional beer. By offering a wide range of nonalcoholic options, Athletic Brewing aims to provide consumers with a guilt-free beer drinking experience.
Athletic Brewing Company’s recent fundraising success and market performance demonstrate its strong position in the nonalcoholic beer industry. With plans for expansion, a focus on consumer trends, and a commitment to quality, the company is well-positioned to continue its growth and success in the evolving beverage market. As the demand for nonalcoholic beverages continues to rise, Athletic Brewing is poised to lead the way in providing consumers with innovative and satisfying nonalcoholic beer options.
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