Company founder Bill Shufelt (left) and head brewer John Walker pause at Athletic Brewing's non-alcoholic brewery and production facility on March 20, 2019 in Stratford, Connecticut.
Spencer Platt | Getty Images
Athletic Brewing Company, the leading non-alcoholic brewer, announced Tuesday that it has raised an additional $50 million in equity financing in a round led by General Atlantic.
The company expects General Atlantic to “invest a lot more,” Athletic CEO and founder Bill Shufelt said Tuesday morning on CNBC’s “Squawk Box.” The brewer plans to use the latest investment to increase production capacity and expand its offerings at global retailers to meet growing consumer demand for non-alcoholic beer.
“We are passionate about transforming the way modern adults drink and turning critics into believers. We are at the beginning of a long-term trend and couldn't be more excited to have General Atlantic by our side as Athletic begins its next phase of growth,” the company said in a press release.
Athletic Brewing launched its non-alcoholic craft brewing facility in 2018 and has since grown to become the 10th-largest craft brewery in the U.S. and the 20th-largest U.S. brewing company overall, despite only offering non-alcoholic options, according to Brewers Association rankings.
Athletic has more than 19% of the non-alcoholic beer market share and is driving 32% of total non-alcoholic beer category growth, according to NielsenIQ data.
“Revenue has more than doubled since our Series D [funding round] “About 18 months ago,” Shufelt said on CNBC.
The Wall Street Journal reported Tuesday that the company's valuation has also doubled with the latest fundraising and now stands at $800 million.
The company currently has two breweries in the United States: one in Milford, Connecticut, and the second in San Diego. Athletic recently announced the purchase of a third brewery in the United States, also located in San Diego. Once operational, Athletic expects the plant to help double its brewing capacity in the United States.
“We sold over 3 million cases, over 100 million cans, generated over $90 million in revenue last year as a company and we're growing well above that this year,” Shufelt said.
The company's success is largely attributed to growing health and wellness trends that are driving consumer interest in non-alcoholic beverages.
According to recent data from NCSolutions, more than 40% of Americans say they are actively trying to drink less alcohol by 2024. That percentage rises to 49% when millennials are surveyed and 61% when surveyed among Gen Zers, the data shows.
Established brewing companies such as Heineken, Constellation Marks-Crown owned by, From Anheuser-Busch Budweiser and even From Diageo Guinness has also joined the trend and has presented its own non-alcoholic beer proposals.
“We want to offer people beer that they can drink seven nights a week and feel good about,” Shufelt said. “We've invested over $100 million in our brewing, which has really differentiated the quality like never before seen in this segment.”
