US alcoholic drinks major Constellation Brands has acquired a minority stake in local functional non-alcoholic beverages producer Hiyo.
The investment in the organic, alcohol-free “social tonic” maker was made through Constellation’s venture capital arm, the group said in a statement.
Go deeper with GlobalData
Hiyo manufactures a range of adaptogen, nootropic and botanical-infused beverages, using ingredients such as ashwagandha, L-theanine, lion’s mane and lemon balm.
The non-alcoholic tonic range is sold in a 335ml canned format in four flavours, blackberry lemon, peach mango, strawberry guava, and watermelon lime. A can contains 30 calories and 0% ABV.
John Utter, senior vice president of New Business Ventures said: “Our Ventures model is centred around investing in new and adjacent categories in line with where consumers are going, which is what really excites us about Hiyo”.
“Their distinctive brand and delicious liquid make it clear to see why Hiyo is one of the fastest-growing names in the functional non-alcoholic space, and we look forward to collaborating with the team to help bring their innovative products to even more consumers.”
Constellation said Hiyo is planning new retail launches, innovation and growing the team in 2025.
The Los-Angeles-headquartered business presently has over 3,000 sales points in the US, including Whole Foods Market, Sprouts Farmers Markets. Its are also sold direct-to-consumer through its website.
Evan Quinn, co-founder and CEO of Hiyo said: “With Constellation’s deep expertise and expansive distribution network, we believe this partnership will help us provide consumers with convenience and access to Hiyo, accelerating our mission to have Hiyos everywhere that beer, wine, and spirits are served.”
Interest in functionality is growing among alcoholic drinks majors.
In November, Dutch brewing heavyweight Heineken snapped up a minority stake in UK-based functional drinks brand G Spot, set up by American actor Gillian Anderson in 2023.
The business produces low-calorie, sugar-free adaptogen and nootropics-fueled drinks.
At the time, Rajeev Sathyesh, marketing director for Heineken’s UK arm, said the investment was linked to its goal of expanding “beyond our well-established beer and cider portfolio.
“The functional drinks category is expanding, offering consumers new choices, and we view G Spot as one of the most exciting brands in this space.”
