Garage Beer, the light beer brand that achieved national prominence when NFL stars Travis and Jason Kelce invested in it last year, has received “strategic growth investment” from Durational Capital Management, the company announced today.
This funding round, Garage Beer’s first, sets the company’s valuation at “roughly $200 million,” the Wall Street Journal reported. Durational is “a large shareholder” in the brand, but the size of its stake was not immediately clear. The Kelce brothers, who promote the beer on their popular podcast New Heights, will remain “existing owners and operators” in addition to CEO and co-owner Andy Sauer, according to a press release.
With the investment, Garage Beer’s board of directors gains two beer industry veterans: Bill Hackett, former Constellation Brands beer division president and chairman, who retired from the Mexican importer in 2019; and Rich Pascucci, former Pabst chief growth officer. MavenHill Capital chairman and managing partner Rhodes McKee will also join the board.
“Our vision is simple: to make a domestic light beer that resonates with everyone,” Sauer said in the release. “Over the past year, we have increased our volume over 400%, expanded nationally, and became the fastest growing and one of the most exciting beer brands in the U.S.
“Durational’s partnership is a strong endorsement of what we have achieved to date and our ambitions for the future,” he continued. “This investment gives us the resources to accelerate our growth and introduce Garage Beer to even more communities and consumers nationwide.”
In the 52-week period (L52W) ending August 9, Garage Beer’s grew triple digits in dollar sales (+508.8%) and volume (+474.6%), measured in case sales, at multi-outlet retailers tracked by NIQ, according to data from 3 Tier Beverages. Those gains have slightly moderated in the L4W, but remain in triple digits (dollars +364.3%, volume +347.9%).
Garage Beer’s portfolio includes two offerings, Classic and Lime. Both check in at 4% ABV with 95 calories and 3 grams of carbohydrates.
“In a world where everyone tries to be the smartest person in the room, we go full send on the dumb ideas that are a blast, and that uncomplicated approach will continue to set us apart in the industry,” Jason and Travis Kelce said in the release. “We’re excited to partner with Durational to help support the vision and share Garage Beer with more of the world.”
The brand is on track to ship 300,000 barrels of beer in 2025, Sauer told Brewbound earlier this summer. Revisit that profile here for more on Garage Beer’s growth trajectory and strategy.