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Diving overview:
- Athletic Brewing announced that it has purchased a 107,000-square-foot facility in San Diego across from its existing brewery for an undisclosed amount. The new manufacturing plant will help the company double its capacity to brew non-alcoholic beers, both flagship and limited edition.
- The brewer said the plant will be able to fill 1,200 cans of beer per minute and will reduce water usage with new brewing technology. Athletic is also installing new packaging lines and strengthening operations to meet food safety and quality requirements. The new facility is scheduled to begin operations in late 2025.
- Athletic has a 19% share of the growing non-alcoholic beer category, according to Nielsen data, and was ranked the No. 10 overall craft beer brewery in the U.S. by The Brewers Association earlier this year. Expanding its manufacturing operations will give the brand the ability to continue growing its retail footprint.
Dive Insights:
As more consumers experiment with moderation and switch to non-alcoholic beer (41% of NC Solutions survey respondents said they are drinking less alcohol this year), Athletic Brewing plans to ramp up its manufacturing capabilities to stay ahead of competing breweries.
In a press release, Athletic CEO Bill Shufelt said the investment will help the company continue to disrupt the beer category.
“From the beginning, skeptics questioned the viability of a brewery dedicated to non-alcoholic beer, but we proved them wrong, revitalizing one of the quietest corners of the grocery store in the process,” Shufelt said. “More people are interested in Athletic than ever before, and this expansion will allow us to expand our capabilities efficiently and sustainably as we look forward to meeting growing wholesaler, retailer and consumer demand for years to come. Will be.”
Part of the company's success has come from redefining the way it sells non-alcoholic beer, which had previously been considered a “fine box” for designated drivers or those recovering from alcoholism, Shufelt told Food Dive earlier this year. The brand emphasized the product's lower carbohydrate and calorie content compared to alcoholic beers, emphasizing its healthier elements.
Non-alcoholic beer has seen significant sales growth since its launch, with category growth reaching 35% in 2023. Athletic gained mainstream recognition in 2022 when beverage giant Keurig Dr Pepper purchased a minority stake in Athletic for $50 million.
