Nonalcoholic brewery finds home in San Diego, shakes up craft beer industry

Athletic Brewing is trying to change the way you look at nonalcoholic beer.

"We want people to be able to hold the beer with the label out, hoping people would ask about it. Previously, with nonalcoholic beer, everyone was like, 'Man, I hope no one asks me what I'm drinking,'" Bill Shufelt, the company's co-founder, told NBC 7.

Athletic started in Connecticut in 2018 and then expanded to San Diego two years later. The company is also opening a new facility next to its existing one in Miramar. When it becomes operational at the end of next year, Athletic will be able to double its brewing capacity.

The demand for Athletic’s beer has skyrocketed. It's the No. 1 nonalcoholic beer brand in the U.S. and is now the No. 1 selling beer brand at Whole Foods, alcoholic or not, according to CNBC. This comes as about 40% of Americans say they are trying to drink less alcohol this year.

Getting the idea to start Athletic came about 11 years ago when Shufelt stopped drinking alcohol for lifestyle reasons. He found the options for nonalcoholic beer lacking, so he decided to make one that he would actually want to drink.

Getting it off the ground wasn’t easy. Shufelt said he was, “rejected by every brewer under the sun to be our co-founder” and that “raising money was impossible to build the first nonalcoholic brewery in the country.”

But Shufelt said he believed whole-heartedly in his idea because all his research and conversations with people told him the same thing: if nonalcoholic beer tasted good and didn’t come with a big stigma, they would love to drink a good nonalcoholic beer.

After hundreds of meetings with potential investors, Shufelt was finally able to secure financing to start Athletic. Then what he needed was a brewer. That’s when Athletic co-founder and award-winning brewmaster John Walker comes in.

“For the first time in nonalcoholic beer, you had this incredibly talented recipe maker and brewer and somebody who really approached things with an innovative mindset coming into nonalcoholic beer," Shufelt said.

In 2018, the pair launched the country’s first nonalcoholic beer brewery in Connecticut but quickly outgrew the building.

"It took nine months to raise the money in 120 investor meetings, and we outgrew it in basically the same amount of time," Shufelt said. "That's when we found a great new home in San Diego."

It’s not just jobs that Athletic has brought to San Diego. The company is also investing in our region’s environment with its Two for the Trails Program. Athletic has donated more than $4 million to trail and outdoor restoration projects.

Athletic also recently raised an additional $50 million in equity financing and just teamed up with Arsenal F. C. to become the English soccer team’s first nonalcoholic beer partner.

As for the future here, besides brewing more beer, an Athletic beer tap room in San Diego is a possibility. 

“We're super excited so far with our investments in the community of San Diego and appreciate everyone's support, and we plan to be here for a long time," Shufelt said.