How Athletic Brewing Co. Became The King Of Non-Alcoholic Beers

Summary

Athletic 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

• 🍺 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.
• 🏭 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.
• 🌟 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.
• 📈 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.
• 🔬 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.
• 🏆 The brand has managed to outperform established beer companies in the market, even surpassing non-alcoholic offerings from major brands like Heineken and Budweiser.
• 🛒 According to Whole Foods data, Athletic Brewing is the top-selling beer brand, including those with alcohol, highlighting its broad appeal to consumers.
• 🌐 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.
• 📊 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.
• 📈 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.
• 📍 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

00:00

🍺 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.

05:02

🌟 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.

Keywords

💡Entrepreneur

An entrepreneur is an individual who creates and operates a new business venture, often taking on financial risks in the hope of achieving financial success and personal satisfaction. In the context of the video, the term is used to describe the person who started Athletic Brewing Company, highlighting the innovative spirit and risk-taking involved in establishing a new business in the competitive craft beer industry.

💡Non-alcoholic beer

Non-alcoholic beer is a type of beer that has little to no alcohol content, typically less than 0.5% ABV. It is designed for those who want to enjoy the taste of beer without the effects of alcohol. The video focuses on Athletic Brewing Company, a leader in this niche market, emphasizing the growing demand for non-alcoholic beer as a healthier alternative to traditional alcoholic beverages.

💡Craft brewing

Craft brewing refers to the production of beer by small, independent breweries that focus on traditional brewing techniques and unique flavors. The video discusses Athletic Brewing Company as a midsize craft brewery, emphasizing its role in the craft beer movement and the company's commitment to producing high-quality non-alcoholic beer options.

💡Millennial-friendly

Millennial-friendly refers to products or services that appeal to the millennial generation, typically characterized by a preference for minimalist design, health-conscious choices, and social responsibility. The video mentions Athletic Brewing's minimalist can art and focus on non-alcoholic beer, indicating a millennial-friendly approach to product design and marketing.

💡Market underservice

Market underservice refers to a situation where the market demand for a particular product or service is not being adequately met by existing suppliers. The video highlights that the non-alcoholic beer market was previously underserved, with Athletic Brewing stepping in to fill this gap and cater to a growing consumer demand for healthier options.

💡Revenue

Revenue refers to the income generated from the sale of goods or services. In the video, Athletic Brewing's revenue of over $90 million is mentioned, showcasing the company's financial success and the significant market potential for non-alcoholic beer.

💡Health trends

Health trends are the prevailing patterns of health-related behaviors, choices, and preferences among consumers. The video discusses the rise in health trends as a driving factor behind the increased demand for non-alcoholic beer, reflecting a broader societal shift towards healthier lifestyle choices.

💡Recipe design

Recipe design in the context of brewing involves the process of creating and perfecting the formula for a beer, including the selection of ingredients and the brewing process. The video describes how Athletic Brewing approached recipe design by focusing on the desired taste experience and the characteristics of malt and hops, which led to the successful creation of their non-alcoholic IPA.

💡Scaling up

Scaling up refers to the process of expanding a business operation to increase production or service capacity. The video mentions Athletic Brewing's rapid growth, scaling up from a small startup to a top 15 craft brewer nationally, highlighting the company's ability to meet increasing market demand.

💡Stigmatize

To stigmatize means to mark or treat as disgraced or discredited. The video discusses the goal of destigmatizing non-alcoholic beer, aiming to make it a more accepted and mainstream choice, rather than a niche or lesser option compared to alcoholic beverages.

💡Draft beer

Draft beer refers to beer that is served from a keg or cask, as opposed to bottled or canned beer. The video mentions Athletic Brewing's launch of draft non-alcoholic beer, which is a significant step in making non-alcoholic options more accessible and normalizing their presence in bars and restaurants.

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