Firm founder Invoice Shufelt (left) and head brewer John Walker pause on the Athletic Brewing’s nonalcoholic brewery and manufacturing plant on March 20, 2019 in Stratford, Connecticut.
Spencer Platt | Getty Photos
Main nonalcoholic brewer Athletic Brewing Firm introduced Tuesday it is raised an extra $50 million in fairness financing in a spherical led by Basic Atlantic.
The corporate expects Basic Atlantic to “finally make investments considerably past that,” Athletic CEO and founder Invoice Shufelt informed CNBC’s “Squawk Field” Tuesday morning. The brewer plans to make use of the most recent funding to extend manufacturing capability and develop its choices at international retailers to fulfill rising shopper demand for nonalcoholic beer.
“We’re keen about remodeling the best way trendy adults drink and changing critics into believers. We’re in the beginning of a long-term pattern, and we could not be extra excited to have Basic Atlantic by our facet as Athletic begins its subsequent section of progress,” the corporate stated in a press launch.
Athletic Brewing launched its nonalcoholic craft brewing amenities in 2018 and has since grown to turn into the tenth largest U.S. craft brewery and twentieth largest total U.S. brewing firm, regardless of solely providing nonalcoholic choices, based on rankings by the Brewers Affiliation.
Athletic holds over 19% market share inside nonalcoholic beer and is driving 32% of complete nonalcoholic beer class progress, based on NielsenIQ information.
“Income has greater than doubled since our Sequence D [funding round] about 18 months in the past,” Shufelt stated on CNBC.
The Wall Road Journal reported Tuesday the corporate’s valuation has additionally doubled with the most recent fundraising and now stands at $800 million.
The corporate presently has two brewing amenities within the U.S., one in Milford, Connecticut, and the second in San Diego. Athletic just lately introduced the acquisition of a 3rd U.S. brewing facility, additionally positioned in San Diego. As soon as operational, Athletic expects the power to assist double its U.S. brewing capability.
“We offered nicely over 3 million circumstances, over a 100 million cans, did over $90 million in income final yr as an organization, and we’re rising nicely above that this yr,” Shufelt stated.
The corporate’s success is essentially attributed to rising well being and wellness developments which can be driving shopper curiosity in nonalcoholic drinks.
Greater than 40% of Individuals say they’re actively attempting to drink much less alcohol in 2024, based on latest information by NCSolutions. That proportion jumps to 49% when surveying millennials and 61% for Technology Z, based on the info.
Established beer firms like Heineken, Constellation Manufacturers-owned Corona, Anheuser-Busch’s Budweiser and even Diageo’s Guinness have additionally hopped on the pattern, introducing nonalcoholic beer choices of their very own.
“We wish to give folks beer they’ll drink seven nights per week and be ok with,” Shufelt stated. “We have invested over $100 million in our manufacturing which has actually differentiated high quality that this phase has by no means seen earlier than.”