Athletic Brewing raises $50 million as nonalcoholic wave sweeps beer making

Leading nonalcoholic brewer Athletic Brewing Company announced Tuesday it's raised an further $50 cardinal successful equity financing successful a circular led by General Atlantic. 

The institution expects General Atlantic to "ultimately put importantly beyond that," Athletic CEO and laminitis Bill Shufelt told CNBC's "Squawk Box" Tuesday morning. The brewer plans to usage the latest concern to summation accumulation capableness and grow its offerings astatine planetary retailers to conscionable rising user request for nonalcoholic beer.

"We are passionate astir transforming the mode modern adults portion and converting critics into believers. We're astatine the commencement of a semipermanent trend, and we couldn't beryllium much excited to person General Atlantic by our broadside arsenic Athletic begins its adjacent signifier of growth," the institution said successful a press release.

Athletic Brewing launched its nonalcoholic trade brewing facilities successful 2018 and has since grown to go the 10th largest U.S. trade brewery and 20th largest wide U.S. brewing company, contempt lone offering nonalcoholic options, according to rankings by the Brewers Association. 

Athletic holds implicit 19% marketplace stock wrong nonalcoholic brew and is driving 32% of full nonalcoholic brew class growth, according to NielsenIQ data.

"Revenue has much than doubled since our Series D [funding round] astir 18 months ago," Shufelt said connected CNBC.

The Wall Street Journal reported Tuesday the company's valuation has besides doubled with the latest fundraising and present stands astatine $800 million.

The institution presently has 2 brewing facilities successful the U.S., 1 successful Milford, Connecticut, and the 2nd successful San Diego. Athletic precocious announced the acquisition of a 3rd U.S. brewing facility, besides located successful San Diego. Once operational, Athletic expects the installation to assistance treble its U.S. brewing capacity.

"We sold good implicit 3 cardinal cases, implicit a 100 cardinal cans, did implicit $90 cardinal successful gross past twelvemonth arsenic a company, and we are increasing good supra that this year," Shufelt said.

The company's occurrence is mostly attributed to growing wellness and wellness trends that are driving user involvement successful nonalcoholic beverages.

More than 40% of Americans accidental they are actively trying to portion little alcohol in 2024, according to caller data by NCSolutions. That percent jumps to 49% erstwhile surveying millennials and 61% for Generation Z, according to the data.

Established brew companies similar Heineken, Constellation Brands-owned Corona, Anheuser-Busch's Budweiser and adjacent Diageo's Guinness person besides hopped connected the trend, introducing nonalcoholic brew offerings of their own.

"We privation to springiness radical brew they tin portion 7 nights a week and consciousness bully about," Shufelt said. "We've invested implicit $100 cardinal successful our manufacturing which has truly differentiated prime that this conception has ne'er seen before."