The mystery surrounding who would take over the now former Ballast Point production facility in San Diego is officially over.
When Ballast Point owners Kings and Convicts announced in April that they had ceased production at the Miramar facility, whispers pointed to dedicated non-alcoholic (NA) beer maker Athletic Brewing Company taking over the space. The speculation proved true.
Athletic announced today that it has purchased the San Diego facility, adding its second production facility in San Diego – and its second former Ballast Point facility following the 2020 acquisition of the assets of the former Ballast Point “Trade Street” facility.
Athletic senior communications manager Chris Furnari told Brewbound that the company “evaluated a number of investment opportunities — including greenfields and renovations — in a variety of markets across the country. Ultimately, this opportunity proved to be the most sustainable approach for our team.”
The San Diego breweries are neighbors, with the new facility at 9045 Carroll Way mere feet away from the Trade Street brewery. Although Athletic did not disclose the sum for which it purchased the brewery, the Carroll Way brewery and its land were assessed at $18.6 million in 2023, according to County of San Diego assessor/recorder/clerk Jordan Z. Marks.
At the 107,000 sq. ft. Carroll Way facility, Athletic will have access to 300- and 150-barrel brewhouses. The building also houses a Ballast Point taproom, which will remain open while Athletic renovates the building over the next year and a half.
The addition of Carroll Way brings Athletic’s annual capacity to 1 million barrels. The company can produce 400,000 barrels at Carroll Way, 150,000 barrels at Trade Street, and 450,000 barrels at its brewery in Milford, Connecticut, Furnari said.
The planned renovations to Carroll Way would bring the facility’s capacity to 750,000 barrels, which would elevate Athletic’s overall bicoastal production capacity to 1.35 million barrels.
San Diego Beer News previously reported that the brewery’s then-unnamed new buyer would contract brew for Ballast Point. However, Athletic refuted the claim. An updated version of San Diego Beer News’ story makes no mention of contract brewing and does not include a correction.
Athletic expects the Carroll Way brewery to come online in late 2025, and the extra brewing capacity will double the NA brewer’s output. Planned improvements include “the installation of a new packaging line as well as enhancements to the brewhouse, cellar, and lab to meet food safety and quality requirements specific to the large-scale production of non-alcoholic beer at the company’s standards,” according to the release.
Those improvements will be funded by a mix of debt, equity and cash flow from operations, Furnari said.
“We plan to utilize the capacity at Carroll Way to its fullest with the addition of a brand new, state-of-the-art packaging hall capable of filling 1,200 cans per minute and implementing some amazing brewing technology which will enhance sustainability as we continue to reduce our use of one of our most precious resources — water,” Athletic co-founder and chief product officer John Walker said in the release. “Our team will take the next 18 months to make efficiency and food safety modifications while we build the packaging hall, and we look forward to the day when we can fire up both the main and the pilot brewhouses.”
About a third of Athletic’s 250-person workforce is now located on the West Coast, the company shared.
Athletic was the 10th largest craft brewery in the country by volume in 2023, according to the Brewers Association’s (BA) May/June issue of the New Brewer Magazine. The company’s volume increased +51%, to 258,445 barrels.
The Athletic brand family has recorded gains in both dollar sales (+62%) and volume (+65%) in off-premise channels year-to-date (YTD) through May 18, according NIQ data Furnari shared. Run Wild IPA and Free Wave Hazy IPA ranked in the top 15 best selling IPAs – both with and without alcohol – YTD in NIQ-tracked channels through mid-May.
Since its founding in 2017, Athletic has added capacity on both coasts. The company’s second Connecticut brewery opened in 2022. Athletic shuttered its original facility in Stratford, Connecticut, in 2023; that brewery opened with 5,000 barrels of capacity, which more than doubled to 11,000 barrels in less than a year, Furnari said.
“The future of modern adult beverages is bright, and we’re excited to continue shaping it,” Athletic co-founder and CEO Bill Shufelt said in the release. “We can’t wait to get to work and strengthen our roots in the San Diego brewing community.”