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Constellation Brands has announced a strategic investment in Hiyo, a non-alcoholic functional beverage brand. This move reflects a growing trend among consumers favouring moderation and innovative flavour profiles in their beverage choices.

Hiyo, known for its organic, non-alcoholic social tonic, uses a proprietary blend of adaptogens, nootropics and botanicals. Each can features ingredients such as ashwagandha, L-theanine and lion’s mane, delivering a unique offering with just 30 calories and 0% ABV.

With this positioning, Hiyo caters to health-conscious consumers seeking flavourful alternatives to traditional alcoholic beverages.

The investment was facilitated through Constellation’s venture capital arm, which seeks to partner with brands that are at the forefront of innovation in the food and beverage landscape.

John Utter, senior vice president of new business ventures at Constellation Brands, said: “Our Ventures model is centred around investing in new and adjacent categories in line with where consumers are going, which is what really excites us about Hiyo".

He continued: "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, and we look forward to collaborating with the team to help bring their innovative products to even more consumers.”

Market research from NielsenIQ indicates that over 93% of non-alcoholic drink buyers also purchase alcoholic beverages, suggesting that Hiyo could enhance Constellation’s existing portfolio by tapping into traditional beer, wine, and spirits occasions.

This strategic alignment is expected to provide consumers with greater choices, particularly as the demand for non-alcoholic options continues to rise.

Evan Quinn, co-founder and CEO of Hiyo, highlighted the significance of the partnership. “This partnership with Constellation Brands marks a pivotal moment for Hiyo as we continue to serve the growing demand for elevated non-alcoholic options,” he remarked.

The collaboration aims to leverage Constellation's extensive distribution network to increase Hiyo's market presence and accessibility.

Hiyo's products are already available in over 3,000 retail locations nationwide, including major chains like Whole Foods Market and Sprouts Farmers Markets, as well as online platforms such as Amazon.