Constellation Brands Acquires Minority Stake In Non-Alcoholic Hiyo

Forbes

24-03-2025

Constellation Brands has acquired a minority stake in the fast-growing functional social tonic brand ... More Hiyo.
Constellation Brands, the parent company of Corona Beer, has acquired a minority stake in the fast-growing functional social tonic brand Hiyo.
This investment, recently made through Constellation's venture capital arm, aligns with its broader strategy to tap into the burgeoning non-alcoholic beverage market, and is expected to help the brewer expand its presence significantly in the category.
Constellation made its first foray into the non-alcoholic space in 2023 by acquiring a minority stake in sparkling cocktails producer Töst. Other brands have also been ramping up their presence over the years, including De Soi, a line of alcohol-free apéritifs created by pop star Katy Perry; microdose-infused tonic, Brez; and non-alc sparkling wines producer, Libby.
According to Nielsen IQ, over 93% of non-alcoholic drink buyers also purchase alcoholic beverages, highlighting the complementary nature of non-alcoholic options to traditional beer, wine, and spirits. Hiyo, with its unique blend of functional ingredients, including ashwagandha, L-theanine, lion's mane, lemon balm, passion flower, and ginger, and refreshing flavors, fits seamlessly into this trend, offering consumers a sophisticated alternative for social occasions.
'Our Ventures model is centered around investing in new and adjacent categories in line with where consumers are going, which is what really excites us about Hiyo,' said John Utter, Senior Vice President of New Business Ventures at Constellation Brands. 'Their distinctive brand and delicious liquid make it clear to see why Hiyo is one of the fastest-growing names in the functional non-alcoholic space.'
From Personal Journey to Organic Social Tonic
Hiyo was born out of a personal journey for its founders: Back in 2019, Evan Quinn and George Youmans, both in their late 20s, found themselves cutting back on alcohol after family members were hospitalized with alcohol-related illnesses. Frustrated by the lack of appealing non-alcoholic options, they teamed up with their college friend Cygne Cooper to create a beverage that could replicate the stress-relieving, mood-boosting effects of alcohol without the downsides.
Evan Quinn (left), Cygne Cooper (mid), George Youmans (right) cofounded Hiyo out of personal needs ... More in 2019.
'The existing choices all felt like sacrifices,' said Youmans, Hiyo's cofounder and CRO. 'We wanted to create something that deserved its place at the table, something that could deliver the feeling people seek from alcohol but through healthy, functional ingredients.'
The result was a USDA organic social tonic that combines organic juices with adaptogens. Each sunset-inspired can contains only 30 calories and delivers what the company describes as a 'floaty' feeling: relaxed, uplifted, and socially engaged.
Elevating the Non-Alc Category
Hiyo's rapid growth is a testament to its unique positioning in the non-alcoholic beverage market. According to SPINS data, Hiyo was the largest contributor to the category's growth last year, with a staggering 212.7% year-over-year increase in retail sales. Currently available in four different varieties: blackberry lemon, peach mango, strawberry guava and watermelon lime, Hiyo's beverages are sold across 3,000 U.S. retail stores, including Whole Foods. In addition to launching a new flavor recently, passionfruit tangerine, the company plans to expand its reach throughout 2025.
'From the flavor, to the function, to the feeling, to the health profile, to the look of the cans, Hiyo is making non-alcoholic options feel more fun, flavorful, and socially acceptable,' said Cooper, who's also Hiyo's Chief Brand Officer.
'Non-alcoholic beer's growth is a good barometer for where we believe our category of functional non-alc can be, and possibly exceed, in the coming years," she added. "As more people become familiar with the functional benefits and delicious flavor profiles that brands like Hiyo offer, we'll see a substantial increase in adoption.'
Hiyo's current retail footprint has already more than tripled in the past year, and the company aims to continue this trajectory by prioritizing sustainable growth. 'We prioritize dollar rate of sale over total door count,' Quinn noted me via email. 'While we may not be everywhere all at once, we intend to keep our best-in-class velocities on the shelf.'