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Why Nonalcoholic Beer Is So Popular Now | WSJ The Economics Of

The Wall Street Journal

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Warm-up Questions

When you hear the title “Why Nonalcoholic Beer Is So Popular Now,” what reasons do you expect (health, taste, lifestyle, business, etc.)?
In your opinion, who is most likely to buy nonalcoholic beer today? Why?
What does the phrase “The Economics Of” suggest the video will focus on?

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Why Nonalcoholic Beer Is So Popular Now | WSJ The Economics Of

Nonalcoholic beer growth and Athletic’s advantage (00:00 – 02:29)

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1. What overall trend does the video describe for the beer market?

Both beer and nonalcoholic beer sales are shrinking.
Beer sales are flat, while nonalcoholic beer is growing fast.
Beer sales are rising quickly, but nonalcoholic beer is declining.

2. How do many companies typically make alcohol-free beer, according to the video?

They avoid brewing and instead dilute beer with water.
They buy alcohol-free beer from another company and rebrand it.
They brew a normal beer and then remove the alcohol with extra processes.

3. Why does Athletic need to use pasteurization in its process, according to the video?

Because pasteurization is required only for beer sold in bars.
Because pasteurization increases alcohol content.
Because nonalcoholic drinks require steps that traditional beer doesn’t due to alcohol content.

Why Nonalcoholic Beer Is So Popular Now | WSJ The Economics Of

Scaling up and using direct-to-consumer data (02:29 – 05:21)

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1. What helped guide Athletic’s initial decision to build the first San Diego facility?

A national government program
A partnership with Budweiser
Data from its direct-to-consumer sales

2. What was one major benefit of direct-to-consumer (DTC) sales mentioned in the video?

It eliminated the need for manufacturing investment.
It prevented competitors from copying Athletic’s beer styles.
It allowed Athletic to gather actionable data and get fast feedback.

3. What helped Athletic get shelf space at Whole Foods relatively quickly?

Customers at Whole Foods are used to trying new craft brands, and Athletic fit that niche.
Whole Foods only sells nonalcoholic beverages in its coolers.
Whole Foods sells mostly imported beers and avoids craft brands.

Why Nonalcoholic Beer Is So Popular Now | WSJ The Economics Of

Competition, risk, and expanding consumption occasions (05:21 – 07:16)

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1. Why is a possible short-term trend riskier for Athletic than for big alcoholic beer companies?

Because Athletic cannot sell in grocery stores.
Because Athletic is not allowed to advertise online.
Because Athletic exclusively focuses on nonalcoholic beer.

2. About how many of Athletic’s points of distribution are in places that aren’t licensed to sell alcohol?

About 5%
About 50%
About 25%

3. What “opportunity” does the video suggest for nonalcoholic beer compared to alcoholic beer?

It is mainly a substitute used only when alcohol is unavailable.
It must be consumed only at sports events.
People can drink it in more situations during the day (e.g., at work or lunch).

Why Nonalcoholic Beer Is So Popular Now | WSJ The Economics Of

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1. Which idea best explains Athletic Brewing’s competitive advantage in the video?

It sells only through bars and restaurants.
It focuses exclusively on the nonalcoholic niche and built a specialized process.
It avoids investing in manufacturing and relies on outsourcing.

2. What role does direct-to-consumer (DTC) selling play in Athletic’s strategy?

It mainly reduces water usage in brewing.
It replaces the need for retail partnerships like Whole Foods.
It provides data and feedback that shapes distribution and marketing decisions.

3. What is a key uncertainty mentioned about the nonalcoholic beer market?

Whether water can be used in beer production.
Whether Americans will continue to tolerate and increase consumption of nonalcoholic beer.
Whether nonalcoholic beer will become illegal due to regulation.

Discussion Questions

Discuss the ideas from this video

Why Nonalcoholic Beer Is So Popular Now | WSJ The Economics Of

Do you think nonalcoholic beer is mainly a substitute for alcohol, or a separate kind of beverage? Explain.
What are the benefits and drawbacks of a company focusing exclusively on one niche product?
How can “actionable data” from customers change a company’s decisions in real life? Give an example.
Should nonalcoholic beer be sold in places like coffee shops or state parks? Why or why not?