Athletic Brewing buys second San Diego facility

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Dive Brief:

• Athletic Brewing announced it purchased a 107,000 square foot facility in San Diego across the street from its existing brewery for an undisclosed sum. The new manufacturing plant will help the company double its capacity to brew its nonalcoholic beer, both flagship and limited offerings.
• The brewer said the plant will be capable of filling 1,200 cans of its beer per minute, and that its new brewing technology will reduce water use. Athletic is also installing new packaging lines and enhancing its operations to meet food safety and quality requirements. The new facility will begin operating in late 2025.
• Athletic has a 19% share of the growing nonalcoholic beer category, according to Nielsen data, and was named the 10th largest overall craft brewery in the U.S. by The Brewers Association earlier this year. Growing out its manufacturing operations will give the brand the ability to continue to grow its retail footprint.

Dive Insight:

As more consumers experiment with moderation and turn to nonalcoholic beer — with 41% of respondents in an NC Solutions survey saying they are drinking less this year — Athletic Brewing is planning to boost its manufacturing capabilities in order to remain ahead of rival breweries.

In a press release, Athletic CEO Bill Shufelt said the investment will help the company continue to disrupt the beer category.

“Since day one, skeptics have questioned the viability of a brewery dedicated to non-alcoholic beer, but we’ve proved them wrong, reinvigorating one of the sleepiest corners of the grocery store in the process,” Shufelt said. “More people than ever before are excited about Athletic, and this expansion will allow us to efficiently and sustainably scale our capacity in anticipation of meeting increasing wholesaler, retailer, and consumer demand for years to come.”

Part of the company’s success has come from reestablishing how nonalcoholic beer is marketed, previously viewed as a “penalty box” for designated drivers or people recovering from alcoholism, Shufelt told Food Dive earlier this year. The brand has leaned into its better-for-you elements, stressing its products’ lower count of carbs and calories compared to alcoholic beer.

Nonalcoholic beer has seen its sales grow significantly since it debuted, with category growth of 35% in 2023. Athletic got a boost in mainstream awareness in 2022 when beverage giant Keurig Dr Pepper purchased a minority stake in Athletic for $50 million.