BURLINGTON, MASS. — Keurig Dr Pepper (KDP) has acquired a minority stake in non-alcoholic craft beer producer Athletic Brewing Co. In exchange for the $50 million investment, KDP now holds an equity stake comparable to other lead investors, including TRB Advisors and Alliance Consumer Growth, and will have a seat on the company’s board of directors.
Athletic Brewing’s product line offers consumers more than 40 different non-alcoholic beer options, such as roasted caramel flavored Stump Jump Autumn Brown, dry and crisp Blueberry Mosaic, and Mexican inspired Cerveza Atletica.
The company holds 55% of the non-alcoholic beer market share in the United States, according to KDP, which grew nearly 20% in retail dollars from August 2021 to August 2022.
“Athletic Brewing is a winning brand in a rapidly growing beverage segment,” said Bob Gamgort, executive chairman of KDP. “Our investment reflects our interest and ability to move into exciting white spaces, including in the blurring of the alcoholic and non-alcoholic categories.”
KDP previously invested in the non-alcoholic segment in June 2022, acquiring the global rights to ready-to-drink cocktail brand Atypique for an undisclosed amount.
The minority investment signals the continuation of KDP’s capital allocation and growth strategy, which emphasizes mergers, acquisitions and brand partnerships.