Forget Sugary Sodas Wellness Drinks Are Gaining Ground With Consumers and Investors

Cision Canada

25-04-2025

Issued on behalf of Safety Shot, Inc.
VANCOUVER, B.C., April 25, 2025 /CNW/ -- Equity Insider News Commentary – The way people consume beverages is changing, both in terms of what they're drinking and how they're buying it. Functional and fortified drinks are gaining ground, with analysts at Insight Ace Analytic forecasting the category to grow at a 7.9% annual rate through 2035. Industry watchers now consider functional beverages one of the fastest-expanding segments within the broader wellness market. This shift hasn't gone unnoticed by investors, especially as companies across the sector continue to roll out new products and strategies to capture demand, including Safety Shot, Inc. (NASDAQ: SHOT, SHOTW), PepsiCo, Inc. (NASDAQ: PEP), National Beverage Corp. (NASDAQ: FIZZ), The Coca-Cola Company (NYSE: KO), and Tilray Brands, Inc. (NASDAQ: TLRY) (TSX: TLRY).
The article continued: According to analysts from Straits Research the Global Dietary Supplements Market is projected to grow from US$211.68 billion in 2025 to US$415.63 billion by 2033, growing at a CAGR of 8.80%. The Business Research Company has its own projection of the Functional Beverages Global Market, highlighting growth by 6.7% CAGR from 2024 to 2025, and projecting it'll grow to $220.93 billion in 2029, at a 5.9% CAGR.
Safety Shot, Inc. (NASDAQ: SHOT, SHOTW) is positioning itself at the intersection of wellness and functional beverage innovation. Its flagship product, Sure Shot®, has made early waves as the first patented supplement shown to reduce blood alcohol content (BAC) in human clinical trials. The company recently released a major business update from CEO Jarrett Boon, outlining a string of operational milestones and a strategic roadmap for 2025.
Following a successful rebrand and D2C launch on Amazon in late 2023, Safety Shot reported sellouts within hours. A follow-up e-commerce rollout in January 2024 showed similar momentum, suggesting strong early consumer demand. According to Boon, this response supports Safety Shot's thesis: there's a growing market for wellness-focused products that help reduce the recovery effects duration of alcohol — both physically and economically.
Backing up these claims is a human clinical trial published in the Journal of Nutrition and Dietary Supplements, which found that Sure Shot significantly reduced BAC and breath alcohol levels compared to placebo. The study also documented improvements in energy, mental clarity, and post-alcohol-consumption recovery symptoms.
Distribution has ramped aggressively in parallel. Sure Shot is now available online via Amazon and Walmart.com, and the company is pushing into physical retail with placements at 7-Eleven, GoPuff, Albertsons, Von's, and others. A newly launched stick pack format offers further convenience and cost advantages, broadening the product's appeal while supporting margins.
To protect its position in the market, Safety Shot recently secured a new patent tied to its formulation and claims. This adds legal weight behind its clinical data and gives the company stronger footing as it expands into new retail and distribution channels.
Looking ahead, the company is also preparing for a potentially transformative acquisition. In early 2025, Safety Shot announced a definitive agreement to acquire Yerbaé Brands Corp., a plant-based energy beverage company with ~$12 million in trailing revenue. Yerbaé brings a ready-made distribution network and a clean-label product line already endorsed by major athletes like Aaron Rodgers and Brock Purdy. Management believes this deal could unlock substantial synergies and accelerate SHOT's entry into new verticals.
Management also confirmed that it will be shifting away from its influencer-heavy strategy used during Sure Shot's launch phase. In 2025, Safety Shot plans to adopt a more cost-efficient, grassroots approach focused on retail partnerships, on-premise exposure, and collaborations with alcohol industry stakeholders. The goal is to get product in-hand and drive word-of-mouth adoption through real usage, not paid buzz.
To add further shareholder value, Safety Shot is spinning off its Caring Brands unit and issuing 2 million shares of the new entity to SHOT shareholders.
Boon also noted that the company has secured additional capital commitments from existing investors. This added runway is expected to support both the Yerbaé integration and the broader retail push for Sure Shot throughout the year.
With clinically validated IP, a growing retail footprint, and a complementary acquisition in the works, Safety Shot is making an aggressive push to secure its place in the evolving functional beverage landscape.
Improving flavor profiles and expanding the lineup remain top product priorities. Safety Shot believes that increasing repeat purchase rates is the most valuable long-term lever — and that better-tasting options will play a key role in driving consumer retention and lifetime value.
PepsiCo, Inc. (NASDAQ: PEP), has entered a definitive agreement to acquire prebiotic soda brand Poppi for $1.95 billion, with a net purchase price of $1.65 billion after tax benefits. The deal expands PepsiCo's portfolio of health-focused beverages and supports its strategy to meet shifting consumer demand for low-sugar, functional drinks.
"As we look to reorient our portfolio offerings to address white space consumer needs, the poppi brand's unique intersection with wellness and culture is a perfect addition to our portfolio," said Ram Krishnan, CEO, PepsiCo Beverages U.S."Allison and the poppi team have built a magnetic brand that's ahead of the trends, with a loyal consumer base and a demonstrated capacity for growth. We are big fans of the poppi brand movement and believe this incredible brand paired with our commercial capabilities will drive continued growth and innovation for years to come."
Poppi, known for its blend of prebiotics, fruit juice, and apple cider vinegar, has built strong momentum with a loyal fan base since launching on Shark Tank. The brand will now operate under PepsiCo, with its founders staying involved to help guide the next phase of growth.
National Beverage Corp. (NASDAQ: FIZZ) reported improved results for its fiscal Q3, with operating profit up 5% to $51 million and earnings per share holding steady at $0.42. For the trailing twelve months, the company posted $1.2 billion in net sales and a 10% rise in net income to $186 million.
"Our marketing strategy and execution continues to reinforce brand awareness in many ways," stated a spokesperson. "Our delightful and theme-oriented in-store displays, consumer 'experiential' engagements with selected retail partners coast-to-coast, and social media posts provide wonderful testimony to the 'Wonderfulness of La Croix!'"
Despite weather disruptions and regional challenges, the company highlighted strong marketing efforts and teased a new innovation in sparkling water packaging currently being tested at Expo West. Management says early feedback suggests the new concept could be a "game changer" for the category.
The Coca-Cola Company (NYSE: KO) has entered the fast-growing prebiotic soda space with the launch of Simply Pop, a new line of sparkling beverages under its long-standing Simply brand. The drinks contain 6g of prebiotic fiber, no added sugar, and up to 30% fruit juice, and are now available in select U.S. stores in five fruit-based flavors. By using a familiar brand to introduce a functional product, Coca-Cola aims to attract younger consumers curious about gut-health drinks but hesitant to try newer names.
"[Gen Z doesn't] remember a world where Simply doesn't exist," said Terika Fasakin, brand senior director for North America. "It's the juice they've seen in the fridge throughout their lives, so it has a particular tug on their heartstrings."
The move positions Coca-Cola directly against rising players in the space, without requiring an outside acquisition.
Tilray Brands, Inc. (NASDAQ: TLRY) (TSX: TLRY) has relaunched Hi*Ball Energy in collaboration with Whole Foods Market, bringing the zero-calorie, zero-sugar energy drink back to shelves nationwide. Originally a natural channel favorite, Hi*Ball is seeing renewed growth, with a 68% sales increase on Amazon over the past six months.
"When Hi*Ball Energy joined our Tilray Brands, Inc. family in 2024, Whole Foods Market immediately took notice," said Jared Simon, President of Tilray Wellness. "Their shoppers were disappointed to lose Hi*Ball Energy after years of brand loyalty. Thankfully, our reliability and quality as an innovation brand gave Whole Foods Market the confidence to restore this important consumer relationship. We look forward to welcoming these consumers back into the brand."
The brand returns with four flavors and a formula that includes organic caffeine, guarana, ginseng, and B vitamins. Tilray says the relaunch reflects its broader strategy to expand its better-for-you beverage portfolio through trusted retail partnerships.
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