Non-alcoholic beer brand RationAle Brewing announces substantial seed investment round

Big news in non-alcoholic beer continues to flow. The other day we saw Athletic Brewing announce a $50M investment from General Atlantic. We recently wrote about the analysts at CGA by NIQ, which focus on on-premise consumption, who noted total beer sales by value in the 12 months to mid-May were up 33.7 percent for NA beer on-premise. Jump over to the Beverage Industry 2024 Beer Report, and you’ll see data that says — for the 52 weeks ending Jan. 28 in total U.S. multi-outlets — dollar sales for non-alcohol beer were nearly $368.7 million, a 29.2 percent increase, while case sales were up 20.3 percent.

NA beer is buzzing. RationAle Brewing would agree. The brand has been steadily showing up on our radar as a frontrunner in the non-alcoholic craft beer sector. Now it’s gearing up for significant growth. Amid a rising interest in non-alcoholic beer options, the company has announced a substantial seed investment round led by J.B. Handley and Bochi Investments, along with the addition of a key executive and expanded market presence. From the press release:

“Securing this level of investment not only demonstrates the immense level of interest and confidence in RationAle’s mission but also highlights the opportunity and responsibility in ensuring the funds are deployed in a highly strategic manner,” said Jamie Fay, CEO and Co-Founder of RationAle Brewing. “Wendy and I are thrilled to have significantly oversubscribed this seed round in a highly competitive funding environment. We are incredibly grateful to all of our new and past investors, as well as our team members who believe in what we are building at RationAle.”

In 2021, RationAle was cofounded by Jamie Fay and Wendy Pickett. Headquartered in San Diego, California, RationAle has adopted the use of BrewVo and NexDraft technologies to make NA beer with interesting innovation. BrewVo, a patented brewing process, allows for the production of beer at a fraction of the traditional weight and volume, significantly enhancing sustainability, efficiency and portability. NexDraft, a revolutionary tap system, offers a unique way to serve craft beer, mixing that BrewVo “multi-brewed beer” with carbonated water and with or without alcohol in real-time, ensuring freshness and quality. Learn how that process exactly works over here.

RationAle’s 12-oz cans (at $13.99/six-pack) come in Hazy IPA, Mexican Cerveza and West Coast IPA and are available online at www.rationalebrewing.com, shipping nationwide. That’s in addition to sales for retail and on-premise locations throughout Arizona, California, Colorado, Nevada, Oregon, Massachusetts, Rhode Island, Texas and Washington.

We recently noted that RationAle Brewing will be sold in over 300 Target stores, and the brand continues to make more distribution relationships. It’s set to launch its products in nearly 200 Sprouts stores, beginning with its highly anticipated Mexican Cerveza. This expansion aligns with the growing consumer trend towards non-alcoholic options, particularly among those seeking to moderate their alcohol intake. It also aligns with the popularity of the Mexican-style category.

“We put all bets on our Mexican Cerveza as it is the most approachable beer style for new consumers entering our portfolio alongside growth trends of full ABV Mexican style lagers. Our testing in key markets has been very promising and we’re eager to see how our products perform in these new Sprouts locations,” said Wendy Pickett.

This most recent capital infusion allows RationAle to invest further into building out its supply chain, ramp up inventories, add strategic hires within sales and marketing and triple down on stimulating brand awareness and trial.

“We can now shift from a resource-constrained environment to boldly leaning into an aggressive growth plan that is supported by an experienced team and a strong operating infrastructure,” continued Fay.

In some people news, Adam Lambert has joined the RationAle team as the new VP of wholesale and sales operations, bringing over three decades of beverage industry experience to the table. Lambert’s extensive background includes leadership roles at notable breweries and beverage companies, positioning him to drive significant growth for RationAle’s distribution networks and sales strategies.

RationAle’s strategic initiatives are set to capitalize on the increasing demand for non-alcoholic beverages, offering consumers a compelling alternative that does not compromise on taste or social experience. As the non-alcoholic beer category continues to evolve, RationAle Brewing is poised to lead the charge, transforming how consumers enjoy craft beer without the alcohol.

“We see immense potential in RationAle, the leadership team, and the category as a whole, and are excited to support the brand’s bullish and refreshing approach to the non-alcoholic beverage market,” said JB Handley. “The brand has a clear point of difference with its Maverick brand positioning in a crowded category, and in our opinion, RationAle is the best-damn-tasting NA craft beer on the market.”