Company Raises Additional $50 Million in Funding for Nonalcoholic Beer Expansion

In a move to further cement its position as the leading nonalcoholic brewer in the market, Athletic Brewing Company has announced an additional $50 million in equity financing. This marks a significant milestone for the company, as it continues to capitalize on the growing demand for low- or no-alcohol beers.

Rise of Nonalcoholic Beer

Nonalcoholic beers have seen a significant surge in popularity in recent years, with over 40% of Americans saying they are actively trying to drink less alcohol, according to recent data. This trend is driven by growing health and wellness concerns, particularly among younger generations.

Investment and Expansion

The company has secured a round of funding led by General Atlantic, which plans to "ultimately invest significantly beyond" the initial $50 million. The fresh capital will be used to increase production capacity, expand its offerings at global retailers, and strengthen its market presence.

"We are passionate about transforming the way modern adults drink and converting critics into believers," said Athletic CEO Bill Shufelt. "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."

About Athletic Brewing

Founded in 2018, Athletic Brewing is a leading producer of nonalcoholic beers. Despite operating in a crowded market, the company has distinguished itself through its commitment to quality and craftsmanship. With two existing brewing facilities in the US, one in Milford, Connecticut, and the other in San Diego, and plans to expand its US operations through the acquisition of a third facility, Athletic is poised for further growth and expansion.

Industry Insights

The company has reported significant revenue growth, with a doubling of sales over the past 18 months. This success has led to increased valuations, with the company’s overall valuation now standing at $800 million, according to recent reports.

Other industry players, including established breweries like Heineken, Constellation Brands’ Corona, Anheuser-Busch’s Budweiser, and Diageo’s Guinness, have also jumped on the nonalcoholic trend, introducing their own low- or no-alcohol beer offerings.

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

The Future of Nonalcoholic Beer

Athletic Brewing’s investment and expansion plans demonstrate its commitment to meeting growing consumer demand for nonalcoholic beers. With its focus on quality, craftsmanship, and innovation, the company is well-positioned to continue its dominance in the industry.

Conclusion

As the trend towards nonalcoholic beer continues to gather pace, Athletic Brewing’s commitment to this space is an exciting development for consumers and investors alike. With its continued investment in manufacturing and production capacity, Athletic is poised to drive growth in this segment and meet the evolving demands of modern consumers.

FAQs

1. What is Athletic Brewing Company, and what does it specialize in?

   • Athletic Brewing is a leading producer of nonalcoholic beers. Founded in 2018, the company focuses on delivering high-quality, nonalcoholic beers for modern adults.

2. What is driving the growth of the nonalcoholic beer market?

   • Growing health and wellness concerns, particularly among younger generations, are driving demand for nonalcoholic beers.

3. Who has invested in Athletic Brewing, and how much money has it raised?

   • Athletic Brewing has raised $50 million in a round led by General Atlantic. Plans are in place for General Atlantic to invest significantly beyond this initial amount.

4. What will Athletic Brewing use its fresh capital for?

   • The company plans to increase production capacity, expand its offerings at global retailers, and strengthen its market presence.

5. Who is the CEO of Athletic Brewing?

   • Bill Shufelt is the CEO of Athletic Brewing.

6. How many brewing facilities does Athletic Brewing operate, and are there plans to expand its US operations?

   • The company operates two brewing facilities in the US, with plans to acquire a third facility in San Diego to increase production capacity.

7. How has Athletic Brewing performed financially?

   • The company has reported significant revenue growth, with sales doubling over the past 18 months, and an overall valuation of $800 million.
8. How has the company managed to differentiate itself in a crowded market?
   • Athletic Brewing has focused on quality and craftsmanship, investing over $100 million in its manufacturing processes to produce high-quality beers.

Author: www.cnbc.com

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