Keurig Dr. Pepper Invests $50 Million in Athletic Brewing Co.

Keurig Dr. Pepper has announced a $50 million investment in leading non-alcoholic brewery Athletic Brewing Co. This deal will help Athletic expand its brand across North America. Full details are below.

BURLINGTON, Mass. and FRISCO, Texas, Nov. 9, 2022 /PRNewswire/ -- Keurig Dr Pepper Inc. (NASDAQ: KDP) today announced a minority stake in Athletic Brewing Company, America's leading non-alcoholic craft beer maker. The transaction represents KDP's latest move into rapidly emerging beverage categories, following its acquisition of non-alcoholic ready-to-drink cocktail brand Atypique.  

The $50 million investment by KDP provides the Company with an equity stake in Athletic Brewing that is comparable to other lead investors, namely TRB Advisors and Alliance Consumer Growth.  KDP will have a seat on the company's Board of Directors.  Further terms of the deal were not disclosed.

Athletic Brewing was founded in 2017 by Bill Shufelt and John Walker and is a top-20 U.S. craft brewer, according to Nielsen. In 2022, Athletic Brewing was ranked as the 26th fastest-growing private company in America by Inc. Magazine and was also named to Time Magazine's "100 Most Influential Companies" list.

Non-alcoholic beer in the U.S. grew almost 20% in retail dollars over the past year¹, with the craft segment, where Athletic Brewing holds a 55% market share, far outpacing total category growth. Athletic Brewing has a lineup of more than 40 brews. 

Non-alcoholic beer accounts for over 85% of total sales¹ in the fast-growing category of non-alcoholic beer, wine and spirits, as an increasing number of consumers moderate their alcohol consumption.

"Athletic Brewing is a winning brand in a rapidly growing beverage segment. Our investment reflects our interest and ability to move into exciting white spaces, including in the blurring of the alcoholic and non-alcoholic categories" said Keurig Dr Pepper Executive Chairman Bob Gamgort. "We look forward to partnering with the Athletic Brewing team to help them scale the business."

"We're thrilled to welcome Keurig Dr Pepper as an investor and strategic partner," Shufelt said. "Their team brings a tremendous amount of expertise and truly embraces our mission of brewing great-tasting non-alcoholic beers that are fit for all times.  This investment will enable Athletic Brewing to further accelerate our growth across North America."

¹NielsenIQ Scan Off Premise Channels; latest 52-week ending 08/20/2022

About Keurig Dr Pepper

Keurig Dr Pepper (KDP) is a leading beverage company in North America, with annual revenue approaching $13 billion and approximately 27,000 employees. KDP holds leadership positions in soft drinks, specialty coffee and tea, water, juice and juice drinks and mixers, and markets the #1 single serve coffee brewing system in the U.S. and Canada. The Company's portfolio of more than 125 owned, licensed and partner brands is designed to satisfy virtually any consumer need, any time, and includes Keurig®, Dr Pepper®, Green Mountain Coffee Roasters®, Canada Dry®, Snapple®, Bai®, Mott's®, CORE® and The Original Donut Shop®. Through its powerful sales and distribution network, KDP can deliver its portfolio of hot and cold beverages to nearly every point of purchase for consumers. The Company is committed to sourcing, producing and distributing its beverages responsibly through its Drink Well. Do Good. corporate responsibility platform, including efforts around circular packaging, efficient natural resource use and supply chain sustainability. For more information, visit www.keurigdrpepper.com.

About Athletic Brewing Company

Athletic Brewing, founded in 2017 by Bill Shufelt and John Walker, is America's leading producer of non-alcoholic craft beer. In 2022, Athletic was ranked as the 26th fastest-growing private company in America by Inc. Magazine and named to TIME's "100 Most Influential Companies" list. Athletic was also selected as one of Ad Age's Top 20 Hottest Brands of 2022 and featured on Fast Company's "Brands That Matter" list in 2021. The company has won over five dozen prestigious brewing awards, including Gold & Silver for its Run Wild and Free Wave IPAs in the 2022 US Open of Beer Championships. Athletic has custom breweries on the east and west coasts, and its "Two for the Trails" initiative donates 2% of all sales to trail and park cleanups and maintenance. Plus, as a part of its IMPACT Program, 1% of revenue goes to non-profit organizations that support positive impact and opportunity from the ground up. As of 2022, Athletic Brewing is proudly a Certified B Corporation™. Its full-flavored non-alcoholic brews and hop-infused sparkling waters are available for purchase on www.athleticbrewing.com.