Exciting News:
- Constellation Brands’ venture capital arm has recently acquired a minority stake in Hiyo, a nonalcoholic “social tonic” that includes a mix of functional ingredients such as adaptogens, nootropics, and botanicals.
- John Utter, Constellation’s senior vice president of new business ventures, expressed that investing in Hiyo aligns with the company’s goal of capitalizing on emerging beverage categories.
- This strategic investment from the Modelo brewer could help Hiyo expand its presence in the rapidly growing nonalcoholic market, where consumers are increasingly seeking beverages with added health benefits.
Insightful Analysis:
With more consumers opting for moderation in their alcohol consumption, Constellation Brands aims to tap into the expanding nonalcoholic ready-to-drink market. Citing Nielsen IQ data, the company noted that over 93% of nonalcoholic beverage buyers also purchase alcoholic drinks.
Utter praised Hiyo’s unique brand and great taste, highlighting its rapid growth in the functional non-alcoholic space. He expressed excitement about collaborating with Hiyo to introduce their innovative products to a wider audience.
Hiyo offers four enticing flavors: Blackberry Lemon, Peach Mango, Strawberry Guava, and Watermelon Lime. Each can contains only 30 calories and includes immunity-boosting ingredients like ashwagandha, L-theanine, lion’s mane, lemon balm, passion flower, and ginger.
The brand’s products are currently available in 3,000 retail stores nationwide, including Whole Foods, with plans for further expansion and new product launches by 2025.
Adaptogens, long used in Asian traditional medicine, have gained popularity for their perceived health benefits, particularly during the COVID-19 pandemic. Food and beverage companies have incorporated adaptogens into various products, from beverages to desserts.
Constellation Brands’ investment in Hiyo follows their previous stake in Töst, a producer of non-alcoholic sparkling cocktails. The trend of nonalcoholic beverages emphasizing health benefits is evident, with celebrities like Katy Perry also launching alcohol-free apéritifs containing adaptogens.