Nonalcoholic beer maker Athletic Brewing raises $50 million

Company founder Bill Shufelt (left) and head brewer John Walker pause at the Athletic Brewing’s nonalcoholic brewery and production plant on March 20, 2019 in Stratford, Connecticut.

Spencer Platt | Getty Images

Leading nonalcoholic brewer Athletic Brewing Company announced Tuesday it’s raised an additional $50 million in equity financing in a round led by General Atlantic. 

The company expects General Atlantic to “ultimately invest significantly beyond that,” Athletic CEO and founder Bill Shufelt told CNBC’s “Squawk Box” Tuesday morning. The brewer plans to use the latest investment to increase production capacity and expand its offerings at global retailers to meet rising consumer demand for nonalcoholic beer.

“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,” the company said in a press release.

Athletic Brewing launched its nonalcoholic craft brewing facilities in 2018 and has since grown to become the 10th largest U.S. craft brewery and 20th largest overall U.S. brewing company, despite only offering nonalcoholic options, according to rankings by the Brewers Association. 

Athletic holds over 19% market share within nonalcoholic beer and is driving 32% of total nonalcoholic beer category growth, according to NielsenIQ data.

“Revenue has more than doubled since our Series D [funding round] about 18 months ago,” Shufelt said on CNBC.

The Wall Street Journal reported Tuesday the company’s valuation has also doubled with the latest fundraising and now stands at $800 million.

The company currently has two brewing facilities in the U.S., one in Milford, Connecticut, and the second in San Diego. Athletic recently announced the purchase of a third U.S. brewing facility, also located in San Diego. Once operational, Athletic expects the facility to help double its U.S. brewing capacity.

“We sold well over 3 million cases, over a 100 million cans, did over $90 million in revenue last year as a company, and we are growing well above that this year,” Shufelt said.

The company’s success is largely attributed to growing health and wellness trends that are driving consumer interest in nonalcoholic beverages.

More than 40% of Americans say they are actively trying to drink less alcohol in 2024, according to recent data by NCSolutions. That percentage jumps to 49% when surveying millennials and 61% for Generation Z, according to the data.

Established beer companies like Heineken, Constellation Brands-owned Corona, Anheuser-Busch’s Budweiser and even Diageo’s Guinness have also hopped on the trend, introducing nonalcoholic beer offerings of their own.

“We want to give people beer they can drink seven nights a week and feel good about,” Shufelt said. “We’ve invested over $100 million in our manufacturing which has really differentiated quality that this segment has never seen before.”

Don’t miss these insights from CNBC PRO

  • Related Posts

    Bay, Iger to take controlling stake at $250 million value

    Bob Iger, chief executive officer of The Walt Disney Co., and his wife attend Willow Bay the Allen & Company Sun Valley Conference on July 11, 2024 in Sun Valley,…

    Spirit Airlines issues second-quarter loss warning

    A Spirit Airlines aircraft undergoes operations in preparation for departure at the Austin-Bergstrom International Airport in Austin, Texas, on Feb. 12, 2024. Brandon Bell | Getty Images Spirit Airlines said…

    Leave a Reply

    Your email address will not be published. Required fields are marked *

    You Missed

    AI can predict tipping points before they happen

    • By admin
    • July 18, 2024
    • 0 views
    AI can predict tipping points before they happen

    Top natural phenomena that are a must for your travel bucket list. | Travel

    • By admin
    • July 18, 2024
    • 0 views
    Top natural phenomena that are a must for your travel bucket list. | Travel

    Avengers Veterans Joe And Anthony Russo Could Direct Next Two Avengers Films

    • By admin
    • July 18, 2024
    • 0 views
    Avengers Veterans Joe And Anthony Russo Could Direct Next Two Avengers Films

    From Impressive Range to Jaw-Dropping Power, Check Top Reason Why Kia EV6 Rules Segment Effortlessly

    • By admin
    • July 18, 2024
    • 0 views
    From Impressive Range to Jaw-Dropping Power, Check Top Reason Why Kia EV6 Rules Segment Effortlessly

    Bay, Iger to take controlling stake at $250 million value

    • By admin
    • July 18, 2024
    • 0 views
    Bay, Iger to take controlling stake at $250 million value

    As The Market Shifts Shiba Inu Investors Add Mpeppe (MPEPE) To Their Portfolio

    • By admin
    • July 18, 2024
    • 0 views
    As The Market Shifts Shiba Inu Investors Add Mpeppe (MPEPE) To Their Portfolio