The Nonalcoholic Rise of Athletic Brewing

When it comes to drinking beer, sometimes less is more.

That’s the thinking behind Athletic Brewing, a low-to-no-alcohol beverage company. Athletic Brewing raised $50 million last week, valuing the brewery at roughly $800 million.

The company has a lot to celebrate lately after becoming the top nonalcoholic beer brand by sales in U.S. grocery stores, surpassing both Heineken and Budweiser.

The company was founded by Bill Shufelt after he stopped drinking to pursue a healthier lifestyle. O’Doul’s and other nonalcoholic beers had been on the market for years, but Shufelt wanted a modern, better-tasting NA beer.

Evolving Tastes

Turns out he wasn’t alone. Nonalcoholic beer has become the fastest-growing segment of the beer market, thanks to the more than 40% of Americans who say they’re trying to drink less alcohol.

Younger generations specifically are cutting back. The percentage of drinkers under the age of 35 is down significantly, and Gen Z drinks the least of any demographic.

Changing consumer preferences aren’t the only drivers of Athletic Brewing’s success. Other major beer brands have released nonalcoholic beers, but Athletic Brewing has won customers over with its superior taste, colorful cans and branding that targets active, health-conscious consumers. 

Athletic Brewing created a new way for nondrinkers to join in on the party, but traditional beer drinkers also enjoy the product. Eliminating alcohol (and hangovers) from the equation creates new opportunities for everyone to enjoy beer.

“Most beverage-alcohol trends are one-for-one substitutions within the same occasion,” said Shufelt. “But most nonalcoholic beer occasions are totally new occasions. New days of the week. New hours of the day. More rounds that people wouldn’t have drunk.”