On 24 February 2025, Constellation Brands has made a strategic investment in Hiyo, a non-alcoholic functional drink brand. This follows an increasing trend among consumers embracing moderation and new flavor profiles when it comes to their drinks.
Hiyo, which boasts an organic, non-alcoholic social tonic, employs a proprietary mix of adaptogens, nootropics, and botanicals. Every can contain ingredients like ashwagandha, L-theanine, and lion's mane, providing a distinctive product with only 30 calories and 0% ABV.
Through this positioning, Hiyo appeals to health-oriented consumers looking for flavorful alternatives to the usual alcoholic drinks.
The investment was made possible through Constellation's venture capital division, which aims to collaborate with brands that are leading the innovation in the food and beverage space.
John Utter, Constellation Brands' senior vice president of new business ventures, said: "Our Ventures model is focused on investing in new and adjacent categories to where consumers are headed, which is what gets us excited about Hiyo".
He added: "Their unique brand and tasty liquid make it easy to understand why Hiyo is one of the fastest-growing names in the functional non-alcoholic category, and we look forward to working with the team to help take their innovative products to even more consumers."
According to Coherent Market Insights the functional beverage industry is expected to register growth at a rate of 8.6% CAGR during the forecast period 2023 to 2031 based on a growing demand for healthy beverages. It was expected at US$ 176.37 Bn in 2022 and is anticipated to grow at a significant rate over the forecasted period.
Hiyo's co-founder and CEO Evan Quinn emphasized the importance of collaboration. "This collaboration with Constellation Brands represents a significant milestone for Hiyo as we strive to meet the increasing demand for premium non-alcoholic choices," he stated.
The partnership will seek to take advantage of Constellation's strong distribution channels to enhance Hiyo's market presence and availability.
Hiyo's products are currently sold in more than 3,000 stores across the country, including prominent chains such as Whole Foods Market and Sprouts Farmers Markets, and online channels such as Amazon.