In a time where health and wellness trends are at the forefront of consumer consciousness, nonalcoholic beverages have seen a surge in popularity. With more than 40% of Americans actively trying to drink less alcohol by 2024, the demand for nonalcoholic options is on the rise. One company that has capitalized on this trend is Athletic Brewing Company, a leading nonalcoholic brewer that has recently announced a significant equity financing round led by General Atlantic.
Athletic Brewing Company has quickly made a name for itself in the nonalcoholic beer market since its launch in 2018. Despite only offering nonalcoholic options, the company has become the 10th largest U.S. craft brewery and 20th largest overall U.S. brewing company. This success can be attributed to the company’s ability to capture over 19% of the nonalcoholic beer market and drive 32% of total category growth, according to NielsenIQ data.
The recent $50 million equity financing round, led by General Atlantic, is a testament to the company’s growth and potential. CEO and founder Bill Shufelt indicated that General Atlantic may extend their investment beyond the initial $50 million. This funding will be used to increase production capacity and expand the company’s offerings at global retailers to meet the growing demand for nonalcoholic beer.
Athletic Brewing Company currently operates two brewing facilities in the U.S., one in Milford, Connecticut, and a second in San Diego. The company recently announced the acquisition of a third brewing facility in San Diego, which is expected to double its U.S. brewing capacity once operational. This expansion aligns with the company’s goal of meeting the increasing consumer demand for nonalcoholic beer.
The success of Athletic Brewing Company can be attributed to the broader health and wellness trends that are shaping consumer preferences. As more Americans, especially millennials and Generation Z, opt for nonalcoholic beverages, companies like Athletic Brewing are well-positioned to capitalize on this market shift. Established beer companies, including Heineken, Corona, Budweiser, and Guinness, have also recognized this trend and introduced their own nonalcoholic beer offerings to cater to changing consumer preferences.
Athletic Brewing Company’s rapid growth and success in the nonalcoholic beer market reflect the shifting consumer preferences towards healthier alternatives. With General Atlantic’s support and a focus on expanding production capacity and product offerings, the company is poised to continue its trajectory of growth in the coming years. As the demand for nonalcoholic beverages continues to rise, companies like Athletic Brewing are at the forefront of transforming the way modern adults drink, making nonalcoholic beer a viable and appealing option for consumers seeking a healthier alternative.
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