The largest non-alcoholic beer brand within the U.S. just saw its value increase, thanks partially to Generation Z’s efforts to make sobriety cool.
Athletic Brewing, co-founded in 2018 by hedge fund trader and later CEO Bill Shufelt, nearly doubled its value to around $800 million in only two years after completing a $50 million equity financing round led by growth capital firm General Atlantic. Wall Street Journal reportedciting people acquainted with the matter.
A spokesman for Athletic said the corporate could neither confirm nor deny the brand new valuation.
The company will use the brand new funding to expand its team and fund renovations at its third U.S. brewery within the San Diego area, Shufelt said in an email to AssetsThe recent facility will enable the corporate to double its brewing capability within the U.S., Shufelt said.
The upstart company has punched above its weight class, beating established names like Heineken and Budweiser to assert the title of leading non-alcoholic beer brand by sales in U.S. grocery stores, in line with a diary Analysis of NielsenIQ data. With 258,000 barrels sold last yr, Athletic was among the many top 20 breweries within the U.S. The company reported revenue of over $90 million last yr.
While the more well-known beer brands only focus a part of their business on non-alcoholic beer, Shufelt’s single-minded deal with this category has given it an edge over the competition.
“Non-alcoholic beer has traditionally been considered a very small market, but we see a tremendous opportunity here to bring both occasions and audiences into the world of alcoholic beverages by opening new days of the week for existing consumers and actively attracting new consumers to the category,” said Shufelt. Assets in an email.
In addition to General Atlantic, Athletic’s other notable backers include beverage maker Keurig Dr. Pepper, which invested greater than $50 million in 2022, in addition to celebrities resembling former NFL player JJ Watt, Momofuku founder David Chang and cyclist Lance Armstrong.
Athletic’s sales success and investor confidence within the brand are partially because of Generation Z’s growing curiosity about sober lifestyles and non-alcoholic beverages. On TikTok #sober and #sobercurious have spawned hundreds of thousands of posts, with many influencers raving concerning the health advantages of their transition to abstinence. More than 60% of young people born between 1997 and 2002 (up from 40% last yr) said they plan to in the reduction of on their drinking this yr, in line with a January survey by promoting firm NCSolutions. Athletic CEO Shufelt said 75% of the corporate’s customers are under 45.
While the emphasis on sobriety could have peaked lately during “Dry January,” summer is definitely one among the busiest times for the corporate, in line with Shufelt. The proliferation of alcohol-free options would have been unthinkable only a decade ago, he told the Diary.
“Ten years ago there were no alternatives,” said Shufelt. “We had to completely change the product and the marketing.”
The growing trend towards sobriety or “conscious consumption” has made non-alcoholic beer the fastest growing segment of the beer market, although overall beer sales have declined because of changing preferences. As more young people in the reduction of on their alcohol consumption, they’re turning to alternatives, including mocktails and non-alcoholic wine, but in addition non-alcoholic beer, which is greatly benefiting Athletic.
“We have made non-alcoholic beer a positive choice and given consumers a product they can hold with pride,” Shufelt said.
