Athletic Brewing Company, a leading nonalcoholic brewer, recently announced a significant milestone in its journey. The company has secured an additional $50 million in equity financing in a round led by General Atlantic. This new capital injection will fuel the company’s ambitions to increase production capacity and expand its offerings in global retailers to cater to the growing demand for nonalcoholic beer.
Strategic Partnership with General Atlantic
General Atlantic’s investment in Athletic Brewing Company is not just a one-time deal. The company’s CEO and founder, Bill Shufelt, mentioned that General Atlantic is expected to make even more substantial investments in the future. This strategic partnership not only validates Athletic Brewing Company’s potential but also provides the necessary financial support for the company to embark on its next phase of growth.
Despite being a relatively young player in the market, Athletic Brewing Company has managed to make a significant impact. Since its inception in 2018, the company has climbed the ranks to become the 10th largest U.S. craft brewery and the 20th largest overall U.S. brewing company. Remarkably, Athletic Brewing holds over 19% market share within the nonalcoholic beer segment and is driving 32% of the total category growth, according to NielsenIQ data.
Financial Performance and Valuation
The company’s financial performance speaks volumes about its success. Revenue has more than doubled since its Series D funding round approximately 18 months ago. With the latest fundraising round, Athletic Brewing Company’s valuation has also doubled, reaching an impressive $800 million. This substantial growth is a clear indicator of the market’s recognition of the company’s potential and the increasing demand for nonalcoholic beverages.
Athletic Brewing Company is not resting on its laurels. The company currently operates two brewing facilities in the U.S., with plans to expand further. The recent acquisition of a third brewing facility in San Diego is set to double the company’s U.S. brewing capacity once operational. This strategic move will enable Athletic Brewing to meet the growing demand for its products and solidify its position in the market.
The success of Athletic Brewing Company is closely tied to the prevailing health and wellness trends that are influencing consumer behavior. With more than 40% of Americans actively trying to reduce their alcohol intake, the demand for nonalcoholic beverages is on the rise. This trend is even more pronounced among younger demographics, with 49% of millennials and 61% of Generation Z expressing interest in consuming less alcohol.
Competition and Industry Trends
The nonalcoholic beer trend has not gone unnoticed by established players in the industry. Companies like Heineken, Corona, Budweiser, and Guinness have all introduced their own nonalcoholic beer offerings to cater to changing consumer preferences. Athletic Brewing Company’s focus on providing a high-quality nonalcoholic alternative that consumers can enjoy daily sets it apart in a crowded market.
As the demand for nonalcoholic beverages continues to grow, companies like Athletic Brewing Company are well-positioned to capitalize on this trend. With a strong financial backing, a commitment to quality, and a clear understanding of consumer preferences, Athletic Brewing Company is paving the way for a new era in the beer industry. By staying true to its mission of transforming the way modern adults drink, the company is poised for continued success in the market.