From Gut Health to Clarity: Why Functional Beverages Are Becoming an Investment Magnet

Cision Canada

13-05-2025

Issued on behalf of Safety Shot, Inc.
VANCOUVER, BC, May 13, 2025 /CNW/ -- Equity Insider News Commentary – The relationship between beverages and supplements has evolved into one of the hottest trends in consumer goods: the functional beverage bonanza. According to analysts at Insightace Analytic, the global functional beverages market is expected to reach US$618.8 billion by the year 2034, growing at a respectable 9.4% CAGR along the way. As consumers are shifting their tastes in the beverages aisle and through online purchases, they're being presented by more innovative products with sips packed with potential health benefits, from companies such as Safety Shot, Inc. (NASDAQ: SHOT), Monster Beverage Corporation (NASDAQ: MNST), Celsius Holdings, Inc. (NASDAQ: CELH), Archer-Daniels-Midland Company (NYSE: ADM), and The Kraft Heinz Company (NASDAQ: KHC).
A growing share of the functional beverage boom is being driven by Millennials and Gen Z, who increasingly favor drinks that support gut health, cognitive function, and recovery—rather than just basic refreshment. According to Grand View Research, the sector is on track to reach $353.4 billion by 2030, underscoring its long-term growth trajectory.
Safety Shot, Inc. (NASDAQ: SHOT) is quickly establishing itself as an early standout in the functional beverage category, generating strong retail traction with a unique formulation, expanding distribution, and an active intellectual property strategy. As wellness continues to reshape consumer preferences, the company is positioning itself at the intersection of innovation and recovery —a space where few beverage players currently compete.
At the core of its offering is Sure Shot® —the first patented beverage clinically shown in human trials to accelerate the reduction of blood alcohol content (BAC). The formulation also supports energy, mental clarity, and post-drinking recovery, offering a functional edge for consumers looking to rebound faster and feel better the next day. It's a product built around smarter self-care, aligned with the broader shift toward wellness-enhancing solutions.
The company's rebrand and direct-to-consumer debut on Amazon in late 2023 were met with strong demand, with several sellouts reinforcing early interest. That momentum continued into 2024, validating the company's view that consumers are increasingly seeking performance-based alternatives to traditional hydration and hangover products. As functional recovery drinks gain traction, Safety Shot appears to be carving out a distinct niche.
Clinical validation continues to strengthen Safety Shot's market position. A peer-reviewed human study published in the Journal of Nutrition and Dietary Supplements found that Sure Shot significantly lowered both blood and breath alcohol levels compared to placebo. Participants also reported sharper mental clarity and a smoother recovery experience, reinforcing the product's broader wellness claims.
Distribution has scaled quickly, with Sure Shot now available through Amazon and Walmart.com and entering major brick-and-mortar chains like 7-Eleven, Albertsons, Vons, and GoPuff. The recent launch of a portable stick-pack format adds shelf appeal and convenience, while also supporting higher margins and enabling on-the-go trial.
On the intellectual property front, the company has secured another patent covering its formulation and functional claims. This added protection reinforces Safety Shot's defensibility and enhances long-term value as the brand grows in a fast-moving wellness category.
To support expansion, Safety Shot signed a definitive agreement in Q1 2025 to acquire Yerbaé Brands Corp. —a plant-based energy drink company with roughly $12 million in trailing revenue. With existing retail distribution and athlete endorsements, Yerbaé offers an immediate entry point into adjacent health and performance categories.
Looking forward, the company plans to shift from early influencer-led marketing to more efficient, grassroots strategies. This includes retail partnerships and collaborations within the alcohol sector, designed to build brand familiarity and encourage repeat use through real-world product interaction.
In addition, Safety Shot has initiated the spinout of its Caring Brands unit, allocating 2 million shares of the new venture to existing shareholders. Initially launched with a limited window, the offer has been extended into later this year to give investors more time to participate in the potential upside.
With clinical backing, national retail presence, growing IP, and a bolt-on acquisition underway, Safety Shot is advancing beyond niche status. The company is focused on establishing a defensible brand in the functional beverage space—one aligned with lasting consumer priorities around recovery, clarity, and better living.
Monster Beverage Corporation (NASDAQ: MNST) remains a major player in the evolving functional beverage space, with flagship products like Reign Total Body Fuel® and Reign Storm® targeting performance and wellness-conscious consumers. In Q1 2025, the Monster Energy® Drinks segment generated $1.72 billion in sales, with foreign currency adjusted growth of 2.2% despite adverse conditions. Gross profit margins improved to 56.5%, driven by strategic pricing and operational efficiencies. The company also highlighted continued global innovation and new launches—reinforcing its push into high-performance, wellness-aligned energy drink formulations.
"Consumer retail sales both for the energy drink category and for the Company's energy drink brands, as measured by Nielsen, were strong and accelerated in the 2025 first quarter in most geographies," said Hilton H. Schlosberg, Vice Chairman and Co-CEO of Monster"Growth opportunities in household penetration and per capita consumption, along with consumers' growing demand for energy drinks, remain positive trends for the category."
Celsius Holdings, Inc. (NASDAQ: CELH) has completed its $1.65 billion acquisition of Alani Nu®, uniting two of the fastest-growing brands in the functional beverage space. The move expands Celsius' reach among wellness-focused consumers seeking zero-sugar energy and hydration options. Together, the brands form a powerhouse portfolio targeting today's demand for performance, taste, and healthier alternatives to traditional energy drinks.
In a strategic move to deepen its functional wellness portfolio, Archer-Daniels-Midland Company (NYSE: ADM) p artnered with Asahi Group to exclusively distribute Lactobacillus gasseri CP2305, a lactic acid-based postbiotic targeting stress, sleep, and mood support. Backed by eight human clinical trials, this ingredient is well-suited for use in functional beverages due to its ability to withstand heat and moisture.
"Stress, mood and sleep are among the fastest-growing wellness segments, and – as the cornerstone to physical and emotional health – they are also some of the most disruptive factors to everyday life and overall well-being if not properly supported," said Mark Lotsch, ADM's President of Global Health & Wellness. "Our agreement with pioneering Asahi Group to bring science-backed L. gasseri CP2305 postbiotic into our robust health and wellness solutions library is a critical step in advancing new product development to support consumers' quality of life around the world."
ADM plans to roll out the postbiotic across North America, Europe, and Asia, leveraging its global footprint and R&D capabilities. The agreement positions ADM at the forefront of microbiome-driven innovation in functional foods and drinks.
Back in March, The Kraft Heinz Company (NASDAQ: KHC) strategically moved its Claussen brand into the functional beverage space with Just The Brine, a limited-edition bottled pickle brine positioned as both a cocktail mixer and a next-day recovery drink. Launched in select U.S. cities via GoPuff, the product capitalizes on viral demand and the rising popularity of electrolyte-infused alternatives.
"After seeing the overwhelming response from fans when we teased the concept last year and all the creative ways people use our brine, we knew we had to make this product a reality," said Caroline Sheehey, Brand Manager for Claussen. "Whether you're mixing up a tangy cocktail or reaching for a next-day refresh, Just The Brine is here to bring the same flavor and experience you already know and love from our delicious pickles – now in liquid form."
With a tangy twist and bold branding, Just The Brine blends novelty with function—supporting hydration while appealing to health-curious Millennials and Gen Z. Claussen's continued experimentation with beverage formats highlights Kraft Heinz's broader push into experiential, wellness-adjacent products.
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