On Tuesday, Athletic Brewing Company announced it closed a $50 million equity financing round led by private equity firm General Atlantic, with participation from other investors. As part of the transaction, General Atlantic assumed a seat on Athletic’s board of managers.
According to a press release, the company plans to use the funding to drive long-term growth. This includes renovating the recently purchased Ballast Point brewing facility in San Diego and expanding distribution to new international markets. Athletic is America’s fastest-growing non-alcoholic beer brand with over 19 percent of the category’s total market share, and according to NielsenIQ, is currently driving 32 percent of the category’s growth.
“We’re thrilled to welcome General Atlantic as a key growth partner at a time when we’re significantly expanding our West Coast capacity to meet increasing demand for Athletic beer,” said Bill Shufelt, Athletic’s co-founder and CEO, in the release. “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.”
To date, the brewing company has raised approximately $225 million through angel, Series A, Series B, and Series C rounds of funding. As Shufelt explained to Brewbound, the company chose equity funding at this time partly due to high interest rates, but also to “invite one of the most respected world-class investors onto [their] cap table [as] they have a very long-term vision.”
Athletic currently operates from two brewing facilities: their flagship in Milford, Conn., and a second in San Diego. Over the next 18 months, the company plans to install a new packaging line and improve the on-site brewhouse, cellar, and lab at the former Ballast Point Brewery to make it fully operational. At that point, Athletic hopes to double its production capacity.
“Athletic has rapidly become the category-defining brand in non-alcoholic beer, and we are excited to partner with Bill and John as the company continues to grow,” said Andrew Crawford, managing director and global head of consumer at General Atlantic, in the release. “With a differentiated brewing process, leading taste profile, and loyal customer base, Athletic is poised to take advantage of the expanding global demand for non-alcoholic beer. We intend to leverage our international platform and capabilities across technology, digital marketing, and merchandising to help the business achieve its potential.”
This story is a part of VP Pro, our free content platform and newsletter for the drinks industry, covering wine, beer, and liquor — and beyond. Sign up for VP Pro now!