Athletic Brewing Co. continues to make big moves. The non-alcoholic beer brand is now listed as one of the largest craft beer brands in the U.S. According to the Brewers Association’s definition of craft beer, Athletic is ranked as the 10th largest craft brewery in the U.S. by sales in 2023. This is an incredible feat for a brand that only produces non-alcoholic beer, and it symbolizes the potential of the non-alcoholic beer movement.
Growth-stage Athletic Brewing Co. announced in June the purchase of its second brewing facility in San Diego (and third overall) for an undisclosed amount. The 107,000-square-foot brewery, located at 9045 Carroll Way in San Diego’s Miramar neighborhood, was formerly Ballast Point’s. Located next to Athletic Brewing Co.’s existing San Diego brewery at 7606 Trade Street, the new Carroll Way facility will feature a 300-barrel and a 150-barrel brewhouse, providing the versatility to produce both flagship and limited-edition beers. Once operational, this third brewery will double Athletic’s U.S. brewing capacity and further solidify its position as the world’s largest brewery dedicated solely to producing non-alcoholic beer.
And that’s not all. Athletic Brewing announced it has completed a $50 million equity funding round led by General Atlantic, an American growth investment firm that provides capital and support to companies, with participation from several existing investors. According to a press release, Athletic plans to use the new funds to fuel long-term growth and spearhead its third brewing facility in the United States. This significant investment also sees General Atlantic joining the company’s board of directors. From the release:
“We are thrilled to have General Atlantic on board as a key growth partner at a time when we are significantly expanding our West Coast production capacity to meet growing demand for Athletic beer,” said Bill Shufeldt, co-founder and CEO of Athletic. “We are passionate about changing the way modern adults drink and turning detractors into believers. We are at the start of a long-term trend, and we couldn’t be more excited to have General Atlantic on our side as Athletic enters its next phase of growth.”
Athletic Brewing has been making waves ever since it launched in 2018. Founded in Stratford, Connecticut, the company first garnered attention when it was revealed that it had raised $17.5 million in Series B funding and $50 million in Series C funding, with notable names from athletes to chefs (JJ Watt, Lance Armstrong, and Momofuku restaurant owner David Chang) among its investors. The company has undoubtedly changed the landscape in North America, evolving the low-alcohol beer category and making it a cool, healthy option and one that doesn’t carry the stigma of unapologetically alcoholic beer.
Athletic has been busy on all fronts. Last year, Athletic produced 258,000 barrels of superior NA beer. The company achieved Certified B Corp status in spring 2022. Athletic was named one of Time magazine’s “100 Most Influential Companies” for 2022 and 2024. The brand was recently named one of GQ’s 20 Most Creative Companies in the World. Athletic has launched everything from interesting apps to cool documentaries to clever distribution channels. Last year, the company celebrated Earth Month with its largest ever Two for the Trails donation. With dollar sales up more than 60%, Athletic now holds more than 19% market share among non-alcoholic beers and is driving 32% of the growth of the overall non-alcoholic beer category according to NielsenIQ, Total US xAOC + Liq Plus + Conv, CYTD Wks ending 6/15/24.
You see, the brand is exploding in every direction.
“Athletic has quickly become a category-defining brand in non-alcoholic beer and we are thrilled to partner with Bill and John as the company continues to grow,” said Andrew Crawford, managing director and head of global consumer at General Atlantic. “With its differentiated brewing process, exceptional taste profile and loyal customer base, Athletic is well-positioned to capitalize on the growing global demand for non-alcoholic beer. We intend to leverage our international platform and capabilities across technology, digital marketing and merchandising to help the business realize its potential.”
According to the press release, 41% of Americans will actively try to reduce their alcohol consumption in 2024, up 7% from 2023. Meanwhile, 58% of consumers believe low- and no-alcohol beer is a good alternative for those looking to reduce their alcohol consumption in the long term.
“General Atlantic shares Athletic’s excitement about the future of the non-alcoholic beer market, and we look forward to working with the Athletic team as they continue to expand their broad portfolio and lead further innovation in this dynamic category,” added Harrison Dizier, vice president at General Atlantic.
Athletic currently operates custom brewing facilities in Milford, Connecticut, and San Diego, California. The investment from General Atlantic and other major investors follows Athletic’s recent acquisition of a second brewing facility in San Diego. Over the next 18 months, Athletic plans a series of renovations and site improvements at the new facility, including the installation of a new packaging line and enhancements to the brewery, cellar and lab that will meet the company’s rigorous food safety and quality standards. This marks Athletic’s third brewing facility purchase in the United States.
