Beverage giant, Constellation Brands, invests in non-alcoholic beverage brand, Hiyo.

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Step aside, sober sippers! The game's afoot in the non-alcoholic beverage world, and Constellation Brands, the beer giant behind Corona, is ready to shake things up. They've recently invested in Hiyo, a fast-rising functional social tonic brand, through their venture capital arm - a move that signals a bold venture into the non-alc sector.

This strategic investment is in line with Constellation's broader goal to tap into the burgeoning market for non-alcoholic beverages, aiming to significantly boost their presence in this category. In 2023, they took their first step into the non-alc realm by acquiring a stake in Töst, a sparkling cocktails producer. Other brands have followed suit, including De Soi, a line of alcohol-free apéritifs by pop sensation Katy Perry, and non-alc sparkling wine producer, Libby.

Nielsen IQ's data reveals that a whopping 93% of non-alcoholic drink buyers still purchase booze, highlighting the complementary nature of non-alc options to traditional beer, wine, and spirits. And Hiyo, with its unique blend of functional ingredients like ashwagandha, L-theanine, lion's mane, lemon balm, passion flower, and ginger, and zesty flavors, fits seamlessly into this trend, providing a sophisticated alternative for social occasions.

John Utter, Senior Vice President of New Business Ventures at Constellation Brands, is jazzed about this investment, stating, "Hiyo's distinctive brand and delicious liquid make it clear to see why they are one of the fastest-growing names in the functional non-alcoholic space."

Hiyo was birthed from the personal experiences of its founders, Evan Quinn and George Youmans. Back in 2019, these two guys in their late 20s found themselves cutting back on the booze, thanks to family members falling ill due to alcohol-related issues. Frustrated by the lack of appealing non-alcoholic options, they teamed up with college friend Cygne Cooper to create a beverage that offered the stress-relieving, mood-boosting effects of alcohol but sans the downsides.

The result was a USDA organic social tonic combining organic juices with adaptogens. Each sunset-hued can contains just 30 calories, providing what the company labels as a "floaty" feeling - relaxed, uplifted, and ready to socialize.

Upping The Non-Alc Game

Hiyo's rapid growth speaks volumes about its unique position in the non-alcoholic beverage market. According to SPINS data, Hiyo was the leading contributor to the category's growth last year, with an astounding 212.7% year-over-year increase in retail sales. Currently available in four flavors – Blackberry Lemon, Peach Mango, Strawberry Guava, and Watermelon Lime – Hiyo's beverages are stocked in over 3,000 U.S. retail stores, including Whole Foods. The brand's recent addition, Passion Fruit Tangerine, and plans for expansion throughout 2025, point to even greater things to come.

Cooper, who's also Hiyo's Chief Brand Officer, says, "From the flavor to the function to the feeling, Hiyo is making non-alcoholic options feel more fun, flavorful, and socially acceptable." Cooper believes that the growth of non-alcoholic beer serves as a promising barometer for where the functional non-alc category can, and likely will, reach in the coming years. "As more people become familiar with the functional benefits and delicious flavor profiles that brands like Hiyo offer, we'll see a substantial increase in adoption," she adds.

Hiyo's impressive growth in the past year has more than tripled their current retail footprint, and the brand aims to continue this trajectory by prioritizing sustainable growth. "We prioritize dollar rate of sale over total door count," Quinn notes via email. "While we may not be everywhere all at once, we intend to keep our best-in-class velocities on the shelf."

Evan Quinn and George Youmans, the founders of Hiyo, ventured into creating a non-alcoholic beverage after experiencing the need for appealing options due to personal struggles with family members' alcohol-related issues. The result was a USDA organic social tonic with functional ingredients, featuring unique flavors and containing only 30 calories per can.
In an effort to broaden their offerings and enter the rapidly growing non-alcoholic beverage market, Constellation Brands invested in Hiyo, a brand known for its functional social tonic. John Utter, Senior Vice President of New Business Ventures at Constellation Brands, voiced excitement about the investment, citing Hiyo's distinctive brand and tasty liquid.
Hiyo's beverages have been a hit in the market, with SPINS data showing that the brand contributed significantly to the category's growth last year, boasting a 212.7% year-over-year increase in retail sales. The brand's focus on sustainable growth and maintaining high velocities on the shelf is expected to continue its trajectory, with plans for expansion throughout 2025 and the introduction of new flavors like Passion Fruit Tangerine.