Company founder Bill Shufelt (left) and head brewer John Walker stop by Athletic Brewing’s non-alcoholic brewery and production facility in Stratford, Connecticut, on March 20, 2019.
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Athletic Brewing Company, a leading non-alcoholic beer maker, announced Tuesday that it has raised an additional $50 million in equity financing in a round led by General Atlantic.
Athletic CEO and founder Bill Shufelt told CNBC’s “Squawk Box” Tuesday morning that the company expects General Atlantic to “eventually make a significant investment.” The brewer plans to use its latest investment to increase production capacity and expand its product range at retailers globally to meet growing consumer demand for alcohol-free beers.
“We are passionate about changing the way modern adults drink and turning critics into believers. We are at the beginning of a long-term trend and we are extremely excited to have General Atlantic by our side as Athletic begins its next phase of growth. ,” the company wrote in a statement Press release.
Athletic Brewing launched an alcohol-free craft brewery in 2018 and has since grown to become the 10th largest craft brewery in the U.S. and the 20th largest beer company in the U.S. despite only offering alcohol-free beers, according to the Brewers Association rankings.
According to NielsenIQ, Athletic has more than 19% market share in non-alcoholic beer and is driving 32% growth in the non-alcoholic beer category.
“Revenue has more than doubled since our Series D round about 18 months ago,” Shufelt said on CNBC.
The Wall Street Journal reported on Tuesday With the latest round of financing, the company’s valuation has also doubled, now reaching $800 million.
The company currently has two breweries in the United States, one in Milford, Connecticut, and one in San Diego. Athletic recently announced the purchase of a third U.S. brewery, also located in San Diego. Athletic expects the facility, once operational, will help double its U.S. brewing capacity.
“Last year our company sold over 3 million cases, over 100 million cans, and generated over $90 million in revenue, and this year we’re growing well beyond that,” Shufelt said.
The company’s success is largely due to the growing health and wellness trend, which is driving consumer interest in non-alcoholic beverages.
More than 40% of Americans say they are actively trying to drink less by 2024, according to recent survey data Provided by NCSolutions. That jumps to 49% when surveying Millennials, and to 61% among members of Generation Z, the data shows.
Well-known beer companies such as Heineken, Constellation brandWith Corona, Anheuser-Busch Budweiser even Diageo’s Guinness has also followed this trend and launched its own alcohol-free beer product.
“We want to give people a beer they can drink seven nights a week and feel good about,” Shufelt said. “We’ve invested over $100 million in manufacturing, which really is unprecedented in this segment. See the differentiated quality.”
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