Athletic Brewing fuels nonalcoholic beer industry
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Athletic Brewing is driving the rise in sales of nonalcoholic beer. Photo: Courtesy of Athletic Brewing Company
America's largest nonalcoholic brewery is growing its San Diego footprint to meet rising demand for booze-free beer.
Why it matters: With operations in San Diego and Connecticut, Athletic Brewing Company is capitalizing on and fueling the nationwide surge of NA beer sales.
Driving the news: Athletic Brewing Company raised an additional $50 million in equity financing in a round led by General Atlantic, the brewery announced Tuesday.
- The company's valuation doubled with the latest fundraising and now stands at $800 million, The Wall Street Journal reported.
Zoom in: Athletic plans to use the investment to expand its offerings at global retailers and increase production capacity, including through its acquisition of Ballast Point's brewing facility in Miramar.
- The planned renovations of that beer manufacturing facility — the largest in San Diego — include installing a new packaging line and enhancements to the brewhouse, cellar and lab.
- Athletic expects to double its U.S. brewing capacity once that's operational.
By the numbers: January sales of nonalcoholic beer in San Diego were up 49% over 2023, according to NielsenIQ data.
- The $519,556 in sales that month is a more than 250% greater than in 2020.
Meanwhile, nationwide beer sales are fairly flat, per NIQ.
Catch up quick: Athletic Brewing launched its nonalcoholic, craft-brewing facilities in 2018 and was named one of TIME magazine's 100 Most Influential Companies of 2024.
- It's now the 10th-largest U.S. craft brewery and 20th-largest U.S. brewer, according to Brewers Association rankings.
- Athletic holds more than 19% market share for nonalcoholic beer and is driving 32% of that category's growth, NIQ data shows.
Fun fact: Whole Foods sells more Athletic beer than any other brand — with or without alcohol — WSJ previously reported.
The big picture: Nationwide, major interest and participation in Dry January marked a change in the way American adults think about alcohol, Axios' Carly Mallenbaum and Alice Feng reported.
- Only 62% of adults under 35 say they drink, down from 72% two decades ago, according to the latest Gallup data.
- The shift has to do with the fact that longevity and sleep have become major health priorities.
💠My thought bubble: Athletic's Run Wild IPA and Upside Dawn Golden are a bit lighter than a regular IPA or lager, but they taste like the real thing.