Alcohol isn’t top of mind for all Americans — and that’s pushing the nation’s largest nonalcoholic beer maker’s value well into the millions.
The Wall Street Journal, citing individuals with knowledge of the situation, first reported that Athletic Brewing has completed a fresh financing round, placing its value at around $800 million.
According to 2023 Gallup poll, young U.S. adults, those between 18 to 34 years old, are drinking far less alcohol. On top of that, the rise of weight loss drugs have consumers looking for healthier alternatives, like low-alcohol or non-alcoholic beverages — prompting food giants to figure out how they can meet those new trends.
Athletic was co-founded by former hedge fund traders Bill Shufelt and John Walker in 2017. The Connecticut-based brewery came about after Shufelt stopped drinking to pursue a healthier lifestyle and felt there was a lack of high quality non-alcoholic beers being offered to U.S. consumers.
Back in 2022, Athletic, which boasts that it produces non-alcoholic beer consumers can “enjoy anytime, anywhere, with no worries and no hangovers,” had a $400 million valuation, the newspaper said, citing a securities filing. At the time, the company scooped up some prominent backers, including soda giant Keuring Dr. Pepper.
Since then, Athletic has grown from a small brewery to a top 20 U.S. producer, the company said in its statement release. In 2018, it produced only 875 barrels. By 2023, it had sold over 258,000 barrels.
Shufelt, the company’s current chief executive officer, said that Athletic is looking to expand its “West Coast capacity to meet increasing demand” for non-alcoholic beverages,” and that a partnership with General Atlantic, one of the largest private equity firms in the world, will help it significantly.
General Atlantic contributed $50 million in equity. With the new money, Athletic said in a statement that it plans to “drive continued long-term growth.” The funds are on top of a third U.S. based brewing facility Athletic acquired, it added.
“We’re at the start of a long-term trend and we couldn’t be more excited to have General Atlantic by our side as Athletic begins its next phase of growth,” Shufelt said.