Finance
Non-alcoholic beer maker Athletic Brewing raises $50 million
Company founder Bill Shufelt (left) and head brewer John Walker pause at Athletic Brewing’s non-alcoholic brewery and production plant on March 20, 2019 in Stratford, Connecticut.
Spencer Platt | Getty Images
Leading non-alcoholic brewer Athletic Brewing Company announced Tuesday that it has raised an additional $50 million in equity financing in a round led by General Atlantic.
The company expects General Atlantic to “eventually invest significantly more,” Athletic CEO and founder Bill Shufelt told CNBC’s “Squawk Box” Tuesday morning. The brewer plans to use the latest investments to increase production capacity and expand its offering at global retailers to meet rising consumer demand for non-alcoholic beer.
“We are passionate about transforming the way modern adults drink and turning critics into believers. We are at the beginning of a long-term trend and we couldn’t be happier to have General Atlantic at our side as Athletic embarks on its next career. growth phase,” the company said in a statement press release.
Athletic Brewing launched its non-alcoholic craft brewery facilities in 2018 and has since grown to become the 10th largest U.S. craft brewery and the 20th largest U.S. brewery overall, despite offering only non-alcoholic options, according to Brewers Association rankings .
Athletic has a more than 19% market share in non-alcoholic beer and is responsible for 32% of the total growth in the non-alcoholic beer category, according to NielsenIQ data.
“Sales have more than doubled since our Series D [funding round] about 18 months ago,” Shufelt said on CNBC.
The Wall Street Journal reported this on Tuesday The company’s valuation has also doubled thanks to the latest fundraising and now stands at $800 million.
The company currently has two breweries in the US, one in Milford, Connecticut, and the second in San Diego. Athletic recently announced the purchase of a third US brewery, also located in San Diego. Once operational, Athletic expects the facility will help double its U.S. brewing capacity.
“We sold over 3 million cases, over 100 million cans, had over $90 million in sales last year as a company, and this year we’re growing well above that,” Shufelt said.
The company’s success is largely attributed to the growing health and wellness trends that are driving consumer interest in non-alcoholic beverages.
According to recent figures, more than 40% of Americans say they will actively try to drink less alcohol by 2024. facts by NCSolutions. That percentage rises to 49% in surveys of millennials and to 61% for Generation Z, according to the data.
Established beer companies such as Heineken, Constellation brands-owned by Corona, Anheuser-Busch’s Budweiser and even from Diageo Guinness has also jumped on the trend and introduced its own range of non-alcoholic beers.
“We want to give people beer that they can drink seven nights a week and feel good about,” Shufelt said. “We have invested more than $100 million in our manufacturing, which offers truly differentiated quality that this segment has never seen before.”
