From Gut Health to Recovery Drinks, This Category Is Just Getting Started

Cision Canada

27-05-2025

Issued on behalf of Safety Shot, Inc.
VANCOUVER, BC, May 27, 2025 /CNW/ -- Equity Insider News Commentary – As consumer preferences continue to shift, refreshment is no longer just about quenching thirst—it's increasingly about delivering benefits. Functional beverages, which offer everything from clean energy and hydration to mood and immunity support, are emerging as one of the most dynamic segments in the industry. RBC Capital Markets' Nik Modi identifies the category as a key growth engine over the next five years, while projections from Research and Markets and InsightAce Analytic forecast the market could grow to as much as $618.8 billion by 2034. With rising interest in temporary abstinence, mindful consumption, and non-alcoholic options, legacy beverage makers are taking notice. Among the brands gaining ground in this space are Safety Shot, Inc. (NASDAQ: SHOT), The Coca-Cola Company (NYSE: KO), PepsiCo, Inc. (NASDAQ: PEP), The Kraft Heinz Company (NASDAQ: KHC), and Oatly Group AB (NASDAQ: OTLY).
Analysts at NIQ attribute the category's momentum to three converging trends: increasing demand for wellness, a wave of ingredient-focused product innovation, and a rising emphasis on targeted health benefits. Even premium hospitality venues are adjusting their menus to meet the surge in demand for non-alcoholic drinks with functional ingredients—reflecting a broader shift in how consumers approach health, socializing, and performance.
Safety Shot, Inc. (NASDAQ: SHOT) is entering a pivotal new phase in its growth story, fueled by the transformative acquisition of Yerbaé Brands Corp.—a high-growth functional beverage company with national retail reach and a portfolio built around clean-label, plant-based energy drinks. The strategic move marks a dramatic scale-up opportunity for Safety Shot, with management forecasting a 1000% increase in 2025 revenue compared to 2024. For investors, it represents a doubling down on the company's vision: delivering innovative wellness solutions that serve both performance and prevention.
" Yerbae's outstanding performance and proven track record in key markets offer Safety Shot a unique opportunity to scale our operations, expand our retail reach and capitalize on new opportunities while increasing revenue right out of the gate," said Jarrett Boon, CEO of Safety Shot. "This acquisition not only enhances our portfolio but also solidifies our commitment to delivering innovative health and wellness solutions to consumers nationwide."
Yerbaé brings substantial firepower to the table. Its yerba mate–infused drinks are zero sugar, zero calorie, non-GMO, and gluten-free, with broad appeal to wellness-minded consumers. In 2024, the brand delivered strong retail growth across major banners like Kroger, Sprouts, and club store giants, with expanding placements in convenience stores and corporate food service accounts such as Google, Amazon, and Uber. Yerbaé's distribution footprint—anchored by partners like Anheuser-Busch InBev SA/NV (NYSE: BUD) and Molson Coors Beverage Company (NYSE: TAP)—gives Safety Shot immediate access to a national retail and wholesale network that would take years to build organically.
This added muscle now surrounds Safety Shot's flagship product: Sure Shot®, the first patented wellness beverage designed to actively support the body's natural ability to lower blood alcohol content. It's a functional innovation aimed at a very real problem—enabling consumers to enjoy their evening while minimizing next-day effects. Sure Shot's formulation is backed by peer-reviewed human trials published in the Journal of Nutrition and Dietary Supplements, which showed reductions in both blood and breath alcohol markers, along with improvements in mental clarity and overall mood.
Since launching its rebranded product in late 2023, Safety Shot has made rapid strides in visibility and consumer uptake. Multiple sellouts on Amazon signaled early demand, and retail availability has since expanded to Walmart.com, GoPuff, Albertsons, Vons, and 7-Eleven. A new stick-pack format—designed for portability and merchandising flexibility—has opened up additional placement opportunities while improving unit economics.
On the regulatory front, Safety Shot continues to fortify its position with intellectual property protections. A new patent granted in 2024 expands coverage of its proprietary blend, creating a stronger moat around its market position as interest in next-day wellness solutions continues to grow. The IP portfolio enhances both consumer trust and potential valuation multiples as the category matures.
Strategically, the company is evolving beyond its early influencer-led campaigns toward a more disciplined, ground-up marketing model. That includes targeted partnerships within the alcohol and nightlife ecosystems, retail activation strategies at the point of consumption, and deeper grassroots engagement to build a loyal customer base. The acquisition of Yerbaé accelerates this strategy dramatically—extending reach into adjacent beverage categories and broadening the company's relevance to multiple consumer types.
Meanwhile, Safety Shot is also pursuing long-term shareholder value creation through the spinout of Caring Brands Inc., a subsidiary positioned for separate market growth. As part of the program, two million shares are being allocated to existing shareholders, with the eligibility window extended into the second half of 2025. It's a value-add initiative aimed at rewarding early supporters while diversifying the company's long-term potential.
With a patented core product, clinical backing, retail momentum, and now a transformative acquisition to drive scale, Safety Shot is beginning to evolve from a single-product innovator into a broader platform brand for functional performance and recovery. Its focus remains clear: deliver results that help people feel better, think clearer, and live more intentionally—without sacrificing their social lives.
Earlier this year, The Coca-Cola Company (NYSE: KO) entered the booming prebiotic soda market with Simply Pop, a new fruit-forward beverage line under its trusted Simply brand.
"We found that consumers, especially wellness-focused Gen Z-ers and Millennials, were really interested in juice and prebiotic sodas," said Becca Kerr, CEO of Nutrition at The Coca-Cola Company. "And since many brands in this category are new, they were looking to align with names they know and trust for both quality and taste."
Made with 6 grams of prebiotic fiber and enriched with Vitamin C and Zinc, the drinks support gut and immune health with no added sugar and 25–30% real fruit juice. Initially launching in select regions and on Amazon Fresh, Simply Pop is rolling out nationally throughout 2025.
Not missing out on the trend, PepsiCo, Inc. (NASDAQ: PEP) has officially acquired poppi, a vibrant functional soda brand known for its prebiotic ingredients, fruit juice, and low sugar content.
" poppi represents a compelling strategic fit within our short- and long-term vision for the future of beverages," said Ram Krishnan, CEO of PepsiCo Beverages U.S."Its rapid growth, strong consumer engagement, and differentiated functional positioning make it a dynamic addition to our portfolio."
The $1.95 billion deal reflects PepsiCo's commitment to reshaping its portfolio with wellness-oriented, culturally relevant brands. poppi's distinctive voice, social media success, and rapid retail expansion make it a natural fit for PepsiCo's long-term strategy. The brand will benefit from PepsiCo's distribution and marketing capabilities as it continues to grow its consumer base in the functional beverage space.
In March, The Kraft Heinz Company (NASDAQ: KHC) launched Crystal Light Vodka Refreshers, a new ready-to-drink cocktail positioned as the lowest-calorie offering in the RTD category. Each can delivers just 77 calories, zero sugar, and 3.8% ABV, appealing to consumers shifting toward moderation and better-for-you alcoholic options.
"With tens of millions of social media videos showcasing creative ways to mix Crystal Light into cocktails, creating a delicious lower-calorie vodka refresher was a natural step for us," said Jeremy Kross, Director of Beverage Mixes at The Kraft Heinz Company. "We're bringing fans a ready-to-drink version in a new format – now with a light, refreshing twist – offering the same signature flavors they know and love."
The launch builds on Crystal Light's long-standing role as a cocktail mixer, now formalized into a convenient, lightly carbonated format available initially in the Northeast U.S. Developed in partnership with Barrel One Collective, the product marks Kraft Heinz's first direct move into functional alcoholic beverages.
Oatly Group AB (NASDAQ: OTLY) the world's leading oat-based beverage company, delivered improved margins and narrowed losses in Q1 2025, supported by supply chain efficiencies and increased sales in key global markets.
"We remain on track to deliver our first full year of profitable growth as a public company," said Jean-Christophe Flatin, CEO of Oatly Group AB. "While there is plenty of work still to do, we are beginning to see early positive signs that our momentum is building, particularly in Europe and Greater China."
As the pioneer of oat-based functional beverages, Oatly continues to position its products as sustainable, health-forward alternatives to traditional dairy. Greater China led growth with a 37.6% increase in revenue, driven by club retail and new foodservice partnerships. The company reaffirmed its full-year outlook, targeting 2–4% constant currency revenue growth and its first year of positive adjusted EBITDA.
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