Durational Capital invests as part of plans to expand brew popular with Gen Z and millennials
A light-beer maker backed by the football stars Travis and Jason Kelce bucked recent concerns about beer’s popularity, claiming a roughly $200 million valuation in its first institutional round of fundraising, according to people familiar with the matter.
In the deal, Garage Beer, which sells a classic light beer and a lime beer, will get funding from the consumer-focused private-equity investor Durational Capital Management.
The details
Garage Beer is on track to notch revenue of between $60 million and $70 million this year, according to Chief Executive Andy Sauer, up from less than $20 million in 2024.
The money from the fundraising is earmarked for investment in marketing and further expanding the brands. As part of the deal, Constellation Brands’ former beer head, Bill Hackett, will join the board of directors.
Sauer said the company focuses on connecting with its consumers. He said Garage Beer makes it a priority to respond to every social-media message and interact with consumers through billboards and events. The brand has a large following among younger legal-age drinkers, including millennials and Gen Z.
That is helped by the Kelce brothers, who catapulted from football players to media stars even before Travis Kelce and Taylor Swift said they are engaged.
The brothers are investors and the faces of the Garage Beer brand. They have taken a hands-on approach to shaping product launches, advertising and the future of the business. Sauer said he received a call on Labor Day from Jason Kelce, who wanted to strategize about different aspects of the brand.
“It’s pretty emblematic on how they both operate,” Sauer said. “It’s an always-on relationship. It’s two people with the same vision and belief in beer, jumping into it.”
Sauer declined to talk about whether the beer would be served at the Kelce-Swift wedding.
The context
Durational, an owner of Bojangles, the fast-food fried-chicken chain, was attracted to Garage Beer because of its innovation in the beer sector, said a partner, Patrick Khayat.
Beer is having a tough year. People have been cutting back on alcohol for health reasons. Younger adult drinkers have gravitated toward canned cocktails or THC-infused drinks. And the use of GLP-1 drugs such as Ozempic is cutting into beer sales.
Constellation Brands, whose brands include Modelo, announced this week that it had cut its fiscal-year outlook after widespread consumer weakness—including among Hispanic buyers—reduced demand for its brews.
Garage Beer’s growth is a bright spot and emulates success seen in the light-beer space with brands including Michelob Ultra. That brew, which is owned by AB InBev, has seen growth by pitching its low-carb and low-calorie beers to consumers who are health-conscious. Its marketing has focused on sports and fitness, striking sponsorships at events such as soccer tournaments.
