Constellation Brands has acquired a minority stake in Hiyo, a Los Angeles-based functional non-alcoholic beverage brand. The investment, made through Constellation’s venture capital arm, reflects the company’s growing interest in the booming functional drinks market.
Hiyo, known for its “social tonic” drinks infused with adaptogens, nootropics, and botanicals, offers flavors like Blackberry Lemon, Peach Mango, Strawberry Guava, and Watermelon Lime. These 12oz canned beverages contain ingredients such as ashwagandha, L-theanine, and lion’s mane, catering to consumers seeking alcohol-free alternatives with wellness benefits. The brand is currently available in over 3,000 retail locations, including Whole Foods Market, Sprouts Farmers Market, and The Vitamin Shoppe, as well as direct-to-consumer through its website and Amazon. Hiyo plans to expand its distribution and innovation efforts in 2025.
John Utter, Senior Vice President of New Business Ventures at Constellation, emphasized that the investment aligns with the company’s strategy to explore high-growth beverage categories. “Hiyo’s distinctive brand and innovative product lineup make it one of the fastest-growing names in the functional non-alcoholic space. According to Nielsen IQ, over 93% of non-alcoholic drink buyers also purchase alcoholic beverages, positioning Hiyo as a strong complement to traditional beer, wine, and spirits occasions,” he said. This investment follows Constellation’s previous minority stake acquisition in Töst, another alcohol-free beverage brand, signaling its continued push into the evolving non-alcoholic drinks market.
Evan Quinn, Hiyo’s co-founder and CEO, expressed enthusiasm about the partnership, emphasizing that it aligns with Hiyo’s mission of ‘rethinking the way the world drinks.’ He cited Constellation’s distribution expertise as a key driver for accelerating the brand’s growth. “With Constellation’s expansive network, we can bring Hiyo to more places where beer, wine, and spirits are traditionally served,” he noted. Hiyo also recently secured $19 million in funding to scale operations, reinforcing its ambition to dominate the functional beverage space.
The functional drinks market is gaining traction, attracting investments from major beverage players. Heineken recently took a minority stake in UK-based functional drinks brand G Spot, highlighting the industry’s shift towards healthier, innovative drink alternatives.
Constellation’s stake in Hiyo underscores the growing appeal of functional non-alcoholic beverages. As health-conscious consumers seek alternatives to traditional alcoholic drinks, brands like Hiyo are positioned for significant expansion, with Constellation helping to accelerate their reach and market presence.