On Strategy Showcase

Episode: Behind the Scenes of Athletic Brewing's Alcohol-Free Brand Play

Host: Fergus O’Carroll
Guest: Andrew Katz, CMO of Athletic Brewing
Date: September 7, 2025

Episode Overview

This episode dives deep into the growing alcohol-free beer category, using Athletic Brewing as a case study for how challenger brands can disrupt established markets. Host Fergus O’Carroll is joined by Andrew Katz, CMO of Athletic Brewing, to discuss the strategic thinking and brand building that’s helped make Athletic a standout in a field increasingly crowded by big names like Heineken and Guinness. The episode also features insights from Matt Herbert (Tracksuit) regarding shifting consumer habits, category penetration, and the role of taste in changing perceptions.

Key Discussion Points and Insights

Current State of the Alcohol-Free Beer Category

• Segment Growth & Penetration

  • The alcohol-free beer category in the U.S. sits at ~29% penetration (roughly 74 million people in the last 3 months) vs. a 54% penetration for regular beer (08:42).
  • The category has experienced a 25% compound annual growth rate over the past three years, closing 2024 at almost $700M in retail sales alone (15:19).

• Historical Perception and Taste Barrier

  • In the past, alcohol-free beer suffered from a poor reputation around taste, which deterred repeat purchases (09:22).
  • Athletic Brewing, with its “pure play” focus on non-alcoholic beers, is shifting this with a broad portfolio designed for proper beer experiences and robust flavor (10:12).

Quote:

"Almost a third of people in the US have claimed to have used or purchased an alcohol free beer in the last [three months]."
— Matt Herbert, 08:42

Consumer Demographics and Motivations

• Demographic Shifts

  • Category has seen a decline with 25–34-year-olds recently, but a corresponding increase among 35–44-year-olds—potentially due to seasonality, lifestyle changes, and health concerns (10:37).
  • Many drinkers are not replacing alcohol entirely but toggling between alcoholic and non-alcoholic options depending on occasion (09:34).

• Motivational Segmentation

  • Athletic targets “active improvers”: people pushing for betterment—be it athletic performance, family, or personal well-being (20:54).
  • Use occasions are categorized as “chaser” (after alcohol), “spacer” (alternating), and “replacer” (substitute for alcohol entirely), broadening appeal (15:59).

Quote:

“So we call them active improvers…I'm trying to pursue a little bit better for myself, for my family, for my community, in whatever way that shows up for them.”
— Andrew Katz, 20:54

Competitive Positioning and Challenger Mindset

• Against Big Brewers
  • Athletic doesn’t see Heineken, Guinness, or other legacy brands as main competitors; instead, their “competition is indifference”—consumer unawareness or apathy (18:54).
  • Larger brands' presence validates and grows the category but, tied as they are to alcoholic legacy lines, cannot innovate or message as flexibly as Athletic (19:56).

Quote:

“They can’t sell against themselves. So they have to establish a reason for their 0 product to exist...we have these degrees of freedom that the incumbents don’t have and we can write our own playbook.”
— Andrew Katz, 19:56

Branding, Packaging, and Marketing

• Packaging as Advertising

  • Athletic’s packaging intentionally avoids traditional beer cues, focusing instead on unique colors and design for shelf standout—Athletic, not “Brewing Company,” is now the central brand callout (23:47).
  • Packaging is considered their “best advertisement,” optimized for visibility from a distance (23:47).

• Category Barriers & Growth

  • Key barriers: taste skepticism, figuring out where alcohol-free fits into daily life, and entrenched perceptions (25:17).
  • Sampling (“cans in hands”) is vital to overcoming reluctance and converting new customers (25:35).

• Platform Evolution

  • Moved from multiple overlapping slogans to “Fit for All Times”—a double entendre capturing health, lifestyle, and occasion flexibility (29:38).
  • Recent campaigns like “Ask for Athletic” aim to make the brand name synonymous with the category, building both awareness and retailer preference (38:44).

Quote:

“Fit for all time, it takes out some of the friction...it’s literally beer that you can drink anytime.”
— Andrew Katz, 31:13

Campaign Structure and Cultural Resonance

• Ads feature J.J. Watt and David Chang demonstrating relatable, everyday “fit for all times” moments (31:34), such as mowing the lawn or making dinner—emphasizing the value of being present, safe, and social.
• Subtle cues in creative (David Chang chopping onions, etc.) reinforce why not being buzzed is a distinct advantage (32:53).

Quote:

“If you want to have kind of a straight line...when you’re cutting your own lawn and like you want to be sober, but you also want to have something delicious and celebratory to drink.”
— Andrew Katz, 32:11

Brand Metrics and Tracking Success

• Primary metrics: unaided and aided awareness, consideration, sales, and household penetration (37:11).
• Growing awareness is the first focus for a challenger brand with less distribution but rising ubiquity in consumer minds (11:57).

Lessons from Previous Beer Campaigns

• Katz discusses his experience with Dos Equis’ “Most Interesting Man” campaign, reflecting on the challenges of evolving a beloved concept and the shifting landscape with social media democratizing “interestingness” (34:03, 36:29).

Notable Quotes & Memorable Moments

• On Distribution & Perception:

  “If you think it’s everywhere, then in fact it’s everywhere.”
  — Andrew Katz, 11:57

• On Audience Communication:

  “Consumers can only hold so many thoughts about one brand in their brain. So part of it was...finding the through line that was something bigger.”
  — Andrew Katz, 29:52

• On Ritual and Emotional Response:

  “The rituals are the same. The crack of the can, the aroma, the mouth feel, the hoppiness, all of that is identical. So if you’re only drinking Athletic in a night...the ritual will feel very, very familiar, minus any of the side effects.”
  — Andrew Katz, 22:23

Timestamps for Key Segments

• Category Introduction & Spot Analysis: 06:45–08:42
• Demographics and Penetration Data: 08:42–10:37
• Interview with Andrew Katz Begins: 11:24
• Startup Evolution & Remit: 12:25–14:07
• Use Case Framework (Chaser/Spacer/Replacer): 15:59–17:21
• Messaging & Positioning Against Big Beer: 18:54–20:43
• Defining Target Audience (“Active Improvers”): 20:54
• Packaging Philosophy: 23:47–24:44
• Category Challenges & Sampling Approach: 25:17–26:56
• Brand Platform and Messaging Evolution (“Fit for All Times”): 29:38–31:44
• JJ Watt & David Chang Campaign Discussion: 31:57–33:08
• Metrics and Brand Health Tracking: 37:11
• Campaign Evolution (“Ask for Athletic”): 38:44

Final Thoughts

Athletic Brewing’s story is one of strategic agility in a rapidly transforming category. By leaning into unique positioning, consumer lifestyle needs, and savvy use of packaging and messaging, they’re re-writing the rules in a space long dominated by legacy brands. Katz’s reflections showcase the opportunity for challenger brands to define themselves with flexibility, clarity, and authenticity—setting Athletic up as not just a brand, but a movement toward better, more conscious drinking.