A light beer company backed by football stars Travis and Jason Kelce has reached a valuation of approximately $200 million following a recent funding round. This information comes after securing investment from consumer-focused private equity firms, marking the first major fundraising round.
CEO Andy Sauer revealed that Garage Beer, known for its classic light and lime-flavored beers, is projected to earn between $60 million and $70 million this year. This is quite the jump from below $20 million last year, largely thanks to the brothers’ popularity raising brand awareness.
The newly acquired funds will be directed toward marketing efforts and expanding the brand. Notably, Bill Hackett, a former beer director at Constellation Brands, will join the board as part of this deal.
As beer and wine sales have dropped—partly due to Americans opting for healthier lifestyles, even influenced by weight loss medications—Garage Beer seems to thrive. Its lighter options resonate with health-conscious consumers and are marketed to zero-calorie drinkers.
Sauer emphasized the importance of engaging with customers, stating that the company actively responds to social media inquiries and organizes consumer-focused events. The brand has gained traction among millennials and Gen Z, buoyed by the brothers’ connection to pop culture, particularly Travis’s relationship with Taylor Swift.
The recent buzz surrounding their engagement, along with their podcast “New Heights,” hitting a Guinness World Record after featuring Swift, has only added to their visibility.
Both Travis and Jason are not just investors; they play a crucial role in product promotions and future business strategies. Sauer mentioned that Jason contacted him on Labor Day to discuss branding strategies.
In discussing the duo’s synergy, Sauer noted, “It’s pretty iconic how both of them work… They share the same vision and passion for beer.” He, however, sidestepped questions about whether their beer will be featured at Travis and Taylor’s wedding.
Additionally, Patrick Khayat from investment firm Durational highlighted growing interest in Garage Beer due to its innovative approach within the beer sector. Competing brands like Michelob Ultra have also managed to navigate the general sales decline by targeting health-conscious drinkers.
Michelob’s marketing strategies include sports sponsorships and positioning itself as a low-carb, low-calorie choice. A recent Morgan Stanley survey indicated that many consumers using GLP-1 medications have cut back on alcohol and unhealthy snacks, with 22% reporting they ceased drinking alcohol entirely. This trend poses significant risks for larger beverage manufacturers.
