How Athletic Brewing Co. Became The King Of Non-Alcoholic Beers
Summary
TLDRAthletic Brewing Company, a Connecticut-based craft brewery, has revolutionized the non-alcoholic beer market with its innovative approach. Founded by someone from the financial world, it has grown to become the top non-alcoholic beer brand in the US, capturing 19% of the market. Despite the challenges faced, the company has seen its revenue surpass $90 million, selling over 250,000 barrels. With a focus on health trends and a minimalist design, Athletic Brewing aims to provide a high-quality alternative for both drinkers and non-drinkers, aiming to be the top choice for consumers seeking a tasteful, alcohol-free option.
Takeaways
- đș The founder of Athletic Brewing Company had a successful career in finance but was drawn to create a non-alcoholic beer brand due to personal experiences with the need for more moderate drinking options.
- đ Athletic Brewing Company is a midsize craft brewery based in Milford, Connecticut, known for producing a variety of beers without alcohol, including IPAs, dark beers, light beers, and seasonal offerings.
- đ The company has achieved significant success, with revenue surpassing $90 million and becoming the top non-alcoholic beer brand in the US, capturing 19% of the market.
- đ The non-alcoholic beer market has seen substantial growth, with a 39% increase in sales in 2020 compared to a 13% growth in alcoholic beverages, indicating a strong consumer trend towards healthier alternatives.
- đŹ Athletic Brewing approaches beer recipe design by working backwards from the desired taste experience, focusing on expressing the characteristics of malt and hops to create a flavorful non-alcoholic beer.
- đ The brand has managed to outperform established beer companies in the market, even surpassing non-alcoholic offerings from major brands like Heineken and Budweiser.
- đ According to Whole Foods data, Athletic Brewing is the top-selling beer brand, including those with alcohol, highlighting its broad appeal to consumers.
- đ The target audience for Athletic Brewing is not limited to non-drinkers but also includes those who enjoy alcohol occasionally and are seeking healthier options for other days.
- đ The non-alcoholic beer market is currently valued at $20 billion and is projected to double by 2033, reflecting a growing demand for alcohol-free beverages.
- đ Between 2022 and 2023, US sales of non-alcoholic beer jumped by 32%, largely attributed to increasing health and wellness trends and better access to health information.
- đ Athletic Brewing is expanding its footprint and launching draft beers to further normalize non-alcoholic options in bars and restaurants, aiming to make it easy for consumers to order non-alcoholic beers casually.
Q & A
What was the founder's initial career before starting Athletic Brewing Company?
-The founder had a rewarding, exciting, and challenging job in the financial world, which involved frequent work dinners and social events.
What is unique about Athletic Brewing Company's products?
-Athletic Brewing Company produces a variety of craft beers, including IPAs, dark beers, light beers, and hazy spice beers, all of which are non-alcoholic.
How does Athletic Brewing Company differentiate itself from traditional breweries?
-Athletic Brewing Company focuses on producing non-alcoholic craft beers, which is a niche market that they believe is underserved and has significant growth potential.
What was Athletic Brewing Company's revenue in the past year?
-Athletic Brewing Company's revenue past $90 million in the past year, selling more than 250,000 barrels of beer.
What is Athletic Brewing Company's market position in the US according to the script?
-Athletic Brewing Company is the number one non-alcoholic beer brand in the US, capturing 19% of the non-alcoholic beer market.
How did the founder transition from a successful career in finance to starting a brewery?
-The founder's transition was driven by a personal need for non-alcoholic beer options and a belief in the potential of the non-alcoholic beer market, leading to the creation of Athletic Brewing Company.
What is the significance of the non-alcoholic beer market's growth in the past five years?
-The non-alcoholic beer market has seen significant growth, with a 39% increase in sales in 2020 compared to a 13% increase for alcoholic beers and ciders, indicating a shift in consumer preferences.
What challenges did Athletic Brewing Company face in the early stages?
-In the early stages, the founder faced challenges such as a lack of industry recognition and the difficulty of convincing established beer companies to take non-alcoholic beer seriously.
How does Athletic Brewing Company approach recipe design for their non-alcoholic beers?
-Athletic Brewing Company approaches recipe design by thinking backwards, focusing on the desired taste experience and how to express the characteristics of malt and hops without alcohol.
What is the current market value of the non-alcoholic beer market and what is the projected growth by 2033?
-The non-alcoholic beer market is currently worth $20 billion and is expected to double to $40 billion by 2033.
How does Athletic Brewing Company plan to expand its presence in the market?
-Athletic Brewing Company plans to expand its footprint by launching draft beers on tap, which will allow for greater accessibility and visibility, further destigmatizing the non-alcoholic beer category.
Outlines
đș The Rise of Athletic Brewing Company
Athletic Brewing Company, a midsize craft brewery based in Milford, Connecticut, has carved a niche in the beer market by specializing in non-alcoholic craft beers. Despite the traditional beer market's focus on alcoholic beverages, Athletic Brewing has managed to capture 19% of the non-alcoholic beer market in the US, with revenue surpassing $90 million and sales of over 250,000 barrels. The company's success is attributed to its ability to meet the needs of a market that was previously underserved, offering a variety of craft beers without alcohol. The founder's journey from a high-profile financial job to the brewing industry, where he faced initial reluctance, is highlighted. The company's innovative approach to recipe design, focusing on the taste and characteristics of the malt and hops to create a flavorful non-alcoholic IPA, is also discussed. The growth of the non-alcoholic beer market, which saw a 39% increase in sales in 2020 compared to a 13% growth in alcoholic beverages, is noted, reflecting a shift in consumer preferences towards health and wellness.
đ Athletic Brewing's Market Strategy and Community Impact
Athletic Brewing has not only surpassed established non-alcoholic beer brands but also become the top-selling beer brand at Whole Foods, outperforming even traditional alcoholic beers. The company's strategy includes making their non-alcoholic beers available on tap, which is expected to further destigmatize the category and encourage more casual consumption. The brand targets both drinkers and non-drinkers, aiming to provide a high-quality alternative for the other five days of the week when alcohol might not be desired. Athletic Brewing's focus is on expanding its market presence and making their product a proud choice for customers. The company's mission is to produce beer that is as enjoyable and high-quality as any other, with the label facing out, signifying an empowering choice for consumers.
Mindmap
Keywords
đĄEntrepreneur
đĄNon-alcoholic beer
đĄCraft brewing
đĄMillennial-friendly
đĄMarket underservice
đĄRevenue
đĄHealth trends
đĄRecipe design
đĄScaling up
đĄStigmatize
đĄDraft beer
Highlights
The founder of Athletic Brewing Company had a successful career in finance but was inspired to create a non-alcoholic beer brand due to personal experiences with excessive drinking.
Athletic Brewing Company is a midsize craft brewery based in Milford, Connecticut, offering a variety of non-alcoholic beers.
The non-alcoholic beer market was traditionally niche but has seen significant growth, with Athletic capturing 19% of the US market.
Athletic Brewing's revenue surpassed $90 million in the past year, selling over 250,000 barrels of beer.
The company has rapidly expanded, building three breweries in four years and becoming a top 15 craft brewer nationally.
Athletic Brewing's success is attributed to meeting the needs of a market that was previously underserved.
The company's approach to recipe design involves thinking backwards from the desired drinking experience.
Non-alcoholic beer sales jumped 39% in 2020, significantly outpacing the growth of alcoholic beverages.
The growth in non-alcoholic beer demand is linked to increasing health and wellness trends.
Athletic Brewing started in 2017, before the pandemic, focusing on non-alcoholic beer production.
The brand has surpassed established names like Heineken and Budweiser in the non-alcoholic beer category.
According to Whole Foods data, Athletic Brewing is the top-selling beer brand, including alcoholic options.
Athletic Brewing aims to serve both drinkers and non-drinkers, offering a high-quality alternative for all days of the week.
The company is focused on expanding its footprint and launching draft options to further destigmatize non-alcoholic beer.
Athletic Brewing's mission is to create a product that customers are proud to choose and enjoy.
The brand's vision is to be synonymous with high-quality beer, regardless of alcohol content.
Transcripts
I had really never even considered being an
entrepreneur. I had a great job that was rewarding, exciting,
challenging in the financial world. Every night I'd be out to
work dinners, things with friends, family, weddings,
bachelor parties, barbecues, everything was a drinking
occasion essentially, there were no options or off ramps to more
moderate options. And, you know, I had to be up at 5am to work
out and be sharp the next day
athletic Brewing Company is a midsize craft brewing company
based out of Milford Connecticut. Like most craft
brewing operations athletic makes a slate of IPAs, dark
beers, light beers, hazy spice, maybe even some fruity offerings
come summer. And of course, this is all wrapped in a millennial
friendly minimalist can art. Like other breweries, you'll
find huge industrial barrels of hops and we may be a couple
brewing awards on display. But one thing you won't find here is
alcohol.
The non alcoholic beer world has always been thought of these
very specific niche occasions, like 1% of the population and 1%
of the time, most people are not drinking most of the time. And
this market is totally underserved.
This past year athletic brewings revenue past $90 million,
selling more than 250,000 barrels of beer. According to
Nielsen IQ. Athletic is now the number one non alcoholic beer
brand in the US capturing 19% of the non alcoholic beer market.
Everything we've done has been from the smallest scale up. But
since then the community and customers have pulled us forward
very fast into building three brewers in four years and
becoming a top 15 craft brewer nationally.
So how did this startup craft brewery be out established beer
companies in the grocery store aisle all while ditching the
alcohol
America's love affair with beer goes back centuries, from
indigenous beer makers to German immigrants. the brewing industry
built entire cities where homegrown beer companies became
corporate empires. We pass laws to ban it then unbanded we've
named baseball teams and stadiums after it. We went micro
and macro then micro again. Beer has been with us since the
beginning taking amber waves of grain and turning that grain
into foamy bubbly amber ale. So as America grew and evolved, our
tastes changed with it. Wouldn't it make sense that our drinking
habits evolved to I
would say the hardest part was I went from a very well respected
by side firm where I had maybe 200 sellside coverages that I
interacted with all the time and had great communication and
collaboration with
Bill used to work at point 72, a hedge fund owned by Steve Cohen
that manages around $32 billion in assets
to nobody picking up my phone calls in the brewing industry.
Absolutely nobody wanted to talk about this work on it. He called
me and said, Don't hang up. It's non alcoholic. A previously
niche section of the beer market non alcoholic beer has seen a
ton of growth in the past five years and 2020 sales of non
alcoholic beer jumped 39%. In contrast, alcoholic beers and
ciders only saw a 13% jump in growth. I totally understood
the need and the want for this product. And for a great non
alcoholic beer that made people feel good and kind of
destigmatize the whole area. And so the challenge was to create a
delicious non alcoholic beer that anybody and everybody could
enjoy, especially craft beer lovers. We approached recipe
design, and recipe building for specific beers like an IPA by
thinking backwards. What do we want the experience to be like?
How do we express the characteristics of the malt, how
to express the characteristics of the hops,
somewhere around batch 20 or 30, the IPA started to taste really
good. And that was just such a enjoyable moment. For me, it was
like mind blowing, it was so much better than anything that
had been in the category since there was a flavor explosion.
The ingredients were super high quality, and I knew we were
going to make it at that point.
Now the cool local non alcoholic beer market is currently worth
$20 billion, a figure that's expected to double to 40 billion
by 2033. Between 2022 and 2023 US sales of non alcoholic beer
jumped 32%. That rise in demand is largely attributed to growing
health trends as more people than ever are skipping the
booze.
There's better information and data at people's fingertips than
there ever has been before. And I think that is building health
and wellness as a real mega trend.
People are you know more and more aware of all of their
health, they're wearing their health on their wrists. They're
looking at their data on their phones, and they're learning a
lot about every single move that they make. And so that's one of
the reasons people are kind of inspired to look for healthy
alternatives. Now
athletic brewing got its start in 2017. Well before the
pandemic led adoption of non alcoholic beer. We built
this product and our process at the Homebrew level and we were
building what was at the time and still is one of the largest
craft breweries in the world. I'm dedicated to non alcoholic
beer, and we need to figure out how to make our products on
traditional brewing equipment and makes it scalable.
Since then, it's passed every other brand of non alcoholic
beer including offerings from established brands like Heineken
and Budweiser. Even more surprising, according to Whole
Foods data athletic brewing is its top selling beer brand. And
yes, that's counting the ones with alcohol in them too. As I
shared with whole foods were beers that we bottled in, like
unlabeled bottles in John's garage, I brought it to Whole
Foods locally, and then immediately got me to Whole
Foods regional, and they basically said, we've been
waiting for this.
So you may be wondering, who's the audience for this? Well, to
the athletic founders, it's for both drinkers and non drinkers
of other groups out to kill the alcohol industry or take alcohol
out like people have been joining alcohol for 1000s of
years. But in the busy modern life, alcohol makes sense and
maybe one or two days a week. Athletic brewing wants to open
that up to the other five days a week.
Right now what we're focused on is filling out our footprint.
And we're launching draft you can get a beer on tap, that's
alcoholic or non alcoholic, it's going to destigmatize the
category further, and people are going to be able to order it
casually. It's gonna be on the menus at the forefront. We're
gonna have our tap handles up there. From
day one, we wanted our customers to be proud in that choice.
Athletic brewing is beer to be drank with the label out. It's
meant to be empowering. It's meant to be every bit as high
quality of beer in the can as anything else you can get in the
bar and restaurant
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