The Rise of Non-Alcoholic Beer: How Gen Z’s Quest for Sobriety is Changing the Industry
A New Era of Sobriety
In an unexpected turn of events, the biggest non-alcoholic beer brand in the United States, Athletic Brewing, has nearly doubled its valuation to $800 million in just two years. This rapid growth can be attributed to the growing interest in sobriety among Gen Z, who are driving the demand for non-alcoholic drinks.
The Journey of Athletic Brewing
Athletic Brewing was founded in 2018 by hedge fund trader turned CEO Bill Shufelt. The company has been rapidly gaining popularity, beating out established names like Heineken and Budweiser to become the top non-alcoholic beer brand by sales in U.S. grocery stores. According to NielsenIQ data, the company sold 258,000 barrels of beer last year, ranking it among the top 20 breweries in the country.
A Single-Minded Focus on Non-Alcoholic Beer
Athletic Brewing’s success can be attributed to its single-minded focus on non-alcoholic beer. Unlike other breweries that may allocate a small portion of their production to non-alcoholic beers, Athletic Brewing dedicates its entire operation to crafting delicious and refreshing non-alcoholic brews.
The Benefits of a Sobriety-Focused Approach
Shufelt believes that Athletic Brewing’s focus on non-alcoholic beer has allowed the company to stand out in a crowded market. "Non-alcoholic beer was previously thought of as a very small market, but we see an enormous opportunity to add both occasions and populations to the adult beverage world by opening new days of the week for existing consumers and actively recruiting new consumers to the category altogether," Shufelt said.
Gen Z’s Influence on the Industry
The growing interest in sobriety among Gen Z is a significant factor in Athletic Brewing’s success. According to a survey by NCSolutions, 60% of young people born between 1997 and 2002 plan to cut back on their alcohol consumption this year. Athletic Brewing’s CEO, Shufelt, attributes this trend to the growing awareness of the health benefits of sobriety. "The emphasis on sobriety is no longer just about ‘Dry January,’" Shufelt said. "Summer is actually one of our busiest times."
The Rise of Non-Alcoholic Options
The proliferation of non-alcoholic options has been a game-changer for the industry. Gone are the days when the only option for those who didn’t drink was water or soda. Now, there are a wide range of delicious and refreshing non-alcoholic beverages available, including beer, wine, and mocktails.
Athletic Brewing’s Plans for the Future
The company plans to use its new financing to grow its team and fund renovations at its third U.S. brewing facility, located in the San Diego area. This new facility will allow Athletic Brewing to double its brewing capacity in the United States.
Conclusion
Athletic Brewing’s success is a testament to the growing interest in sobriety among Gen Z. The company’s single-minded focus on non-alcoholic beer has allowed it to stand out in a crowded market and capitalize on this trend. As the demand for non-alcoholic beverages continues to grow, it will be exciting to see how Athletic Brewing and other companies in the industry respond.
FAQs
Q: What is Athletic Brewing’s valuation now?
A: Athletic Brewing’s valuation is now approximately $800 million.
Q: What is driving the demand for non-alcoholic beer?
A: The growing interest in sobriety among Gen Z is a significant factor in the demand for non-alcoholic beer.
Q: How has Athletic Brewing’s focus on non-alcoholic beer helped the company stand out in the industry?
A: Athletic Brewing’s focus on non-alcoholic beer has allowed it to stand out in a crowded market and capitalize on the growing trend of sobriety.
Q: What are some of the key demographics of Athletic Brewing’s customers?
A: 75% of Athletic Brewing’s customers are under the age of 45.
Q: How is Athletic Brewing using its new financing?
A: The company plans to use its new financing to grow its team and fund renovations at its third U.S. brewing facility.
Author: fortune.com
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