Athletic Brewing Co. continues to make big moves. The non-alcoholic beer brand now has a seat at the table as one of the biggest craft beer brands in America. Athletic ranked as the 10th biggest craft brewer in America in 2023 by sales volume, according to the Brewers Association definition of craft. That’s an amazing feat for a brand that only makes beer without alcohol, representing the potential for the NA movement.
Still in growth mode, Athletic Brewing Co. announced in June the purchase of a second San Diego brewing facility (its third overall) for an undisclosed sum. The 107,000-sq-ft brewery, located at 9045 Carroll Way in the Miramar neighborhood of San Diego, was formerly Ballast Point’s. Located next to Athletic Brewing’s existing San Diego brewery at 7606 Trade Street, the new Carroll Way facility includes 300-barrel and 150-barrel brewhouses and will offer the versatility to produce both flagship and limited-time brews. Once operational, this third brewery will allow Athletic to double its U.S. brewing capacity, further cementing it as the world’s largest brewery entirely devoted to producing non-alcoholic beer.
It doesn’t stop there. Athletic Brewing just announced it has closed a $50 million equity financing round led by General Atlantic, an American growth equity firm providing capital and support for companies, along with participation from multiple existing investors. According to the press release, Athletic plans to use the new capital to drive long-term growth and spearhead its third U.S. brewing facility. The big investment has earned General Atlantic a seat on the company’s Board of Managers. From the release:
“We’re thrilled to welcome General Atlantic as a key growth partner at a time when we’re significantly expanding our West Coast capacity to meet increasing demand for Athletic beer,” said Bill Shufelt, Co-Founder and CEO of Athletic. “We are passionate about transforming the way modern adults drink and converting critics into believers. We’re at the start of a long-term trend, and we couldn’t be more excited to have General Atlantic by our side as Athletic begins its next phase of growth.”
Ever since Athletic Brewing launched in 2018, the brand has been buzzing. Founded in Stratford, Conn., the company first began making headlines when it generated $17.5M in Series B funding and then $50M in Series C funding and when it came to light that some of the investors in the company are famous folks from athletes to chefs — J.J. Watt, Lance Armstrong, Momofuku restaurateur David Chang. The company has definitely changed the NA landscape in America, evolving the low-no alcohol beer category, making NA a cool, healthy choice and not an apologetic, alcoholic stigma.
Athletic has been busy on all fronts. Last year, Athletic produced 258,000 barrels of outstanding NA beer. It earned Certified B Corp status in the spring of 2022. Athletic was named one of Time‘s “100 Most Influential Companies” in 2022 and 2024. The brand was recently selected as one of GQ‘s 20 most creative companies in the world. Athletic has launched everything from interesting apps to cool documentaries to clever distribution channels. Last year, the company celebrated Earth Month with its largest-ever Two for the Trails donation. With dollar sales growing by more than 60 percent, Athletic currently holds over 19 percent market share within non-alcoholic beer and is driving 32 percent of total non-alcoholic beer category growth, according to NielsenIQ, Total US xAOC + Liq Plus + Conv, CYTD Wks ending 6/15/24.
You get the idea. This brand is blasting in all directions.
“Athletic has rapidly become the category-defining brand in non-alcoholic beer, and we are excited to partner with Bill and John as the company continues to grow,” said Andrew Crawford, Managing Director and Global Head of Consumer at General Atlantic. “With a differentiated brewing process, leading taste profile, and loyal customer base, Athletic is poised to take advantage of the expanding global demand for non-alcoholic beer. We intend to leverage our international platform and capabilities across technology, digital marketing, and merchandising to help the business achieve its potential.”
According to the press release, 41% of Americans are actively trying to moderate their alcohol consumption in 2024, a 7% increase from 2023. Meanwhile, 58% of consumers say that low- and non-alcoholic beer is a good alternative for anyone looking to moderate their alcohol consumption long-term.
“General Atlantic shares Athletic’s excitement for the future of the non-alcoholic beer market. We look forward to working with the Athletic team as they continue to expand their extensive portfolio and lead further innovation in this dynamic category for years to come,” added Harrison DiGia, Vice President at General Atlantic.
Athletic currently operates custom brewing facilities in Milford, Connecticut, and San Diego, California. The investment from General Atlantic, alongside other key investors, closely follows Athletic’s recent acquisition of a second San Diego brewing facility mentioned above. Over the next 18 months, Athletic is planning a series of renovations and site improvements at the new facility which will include the installation of a new packaging line and enhancements to the brewhouse, cellar and lab to meet the company’s strict food safety and quality standards. purchase a third U.S. brewing facility.
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