Athletic Brewing closes a $50 million financing round. The company’s valuation reaches $800 million, doubling since 2022.
Growth-investment firm General Atlantic leads the round. This valuation reflects the booming nonalcoholic beer market, which grew 31% in 2023.
Nonalcoholic Beer Market Surges Forward
Nonalcoholic beer becomes the fastest-growing beer segment. Athletic Brewing leads U.S. sales, surpassing Heineken and Budweiser.
The global nonalcoholic beer market is expected to reach $25 billion by 2024. This growth contrasts with overall beer sales, which declined 3% in 2023.
Athletic Brewing’s Rapid Ascent
Founded in 2017, Athletic quickly becomes a top-20 U.S. brewery. The company sold over 258,000 barrels in 2023.
Athletic’s sales exceeded $90 million last year. This growth outpaces the overall craft beer market, which grew 8% in 2023.
Expansion Plans and New Facility
Athletic announces acquisition of a third U.S. brewing facility. This expansion will double the company’s brewing capacity.
The nonalcoholic beer market is projected to grow at a CAGR of 7.5% from 2024 to 2030. Athletic’s expansion aligns with this projected market growth.
Marketing Push: “Ask For It”
Athletic launches its biggest marketing campaign to date. The “Ask For It” campaign aims to normalize nonalcoholic beer choices.
U.S. advertising spend on nonalcoholic beverages reached $6.2 billion in 2023. Athletic’s campaign reflects the industry’s growing marketing focus on alcohol alternatives.
Younger Americans Drive Market Shift
Millennials and Gen Z lead the trend towards less alcohol consumption. 66% of millennials report efforts to reduce alcohol intake.
The “sober curious” movement gains traction, with 34% of adults interested in trying nonalcoholic beer. This demographic shift fuels Athletic’s growth.
High-Profile Backers Support Athletic Brewing
Keurig Dr Pepper invests over $50 million for a minority stake. Celebrity investors include J.J. Watt and Lance Armstrong.
Craft brewing startups raised $2.1 billion in venture capital between 2018-2023. Athletic’s high-profile backing reflects investor confidence in the nonalcoholic market.
Founders’ Vision Shapes Company Growth
CEO Bill Shufelt, a former hedge-fund trader, co-founds Athletic. Shufelt’s personal journey to healthier living inspires the company’s mission.
The number of U.S. breweries focusing on nonalcoholic beer increased by 150% from 2018 to 2023. Athletic’s story mirrors the broader industry shift towards health-conscious options.
Changing Consumer Habits Fuel Growth
Nonalcoholic options gain popularity beyond Dry January. Summer becomes a key sales period for Athletic.
47% of U.S. adults participated in Dry January in 2024. Year-round consumption of nonalcoholic beer increased by 39% in 2023.
Retail Presence Boosts Sales
Athletic secures valuable shelf space in stores. The company’s products now available in over 50,000 U.S. retail locations.
Nonalcoholic beer sales in U.S. retail stores grew by 32% in 2023. Athletic’s expanded retail presence contributes to its market leadership.
