Constellation Brands Buys Stake in Non-Alc Brand Hiyo
BevAlc company Constellation Brands is expanding its presence in non-alcoholic drinks by investing a minority stake in Hiyo.
The organic brand, manufactured with a proprietary blend of adaptogens, nootropics, and botanicals touts 0% ABV per can at just 30 calories, including a combination of natural ingredients such as ashwagandha, L-theanine, lion’s mane, lemon balm, passion flower, and ginger to produce four flavors: Blackberry Lemon, Peach Mango, Strawberry Guava, and Watermelon Lime.
The company is currently sold by over 3,000 distributor locations across the country, including retailers such as Whole Foods Market, Sprouts Farmers Markets, The Vitamin Shoppe, and Amazon. Hiyo plans to grow its team, introduce new innovations, and launch in new locations in 2025.
Constellation’s M&A Strategy
The investment was made through Constellation’s venture capital group as part of an effort to grow in new and adjacent categories, according to the SVP of new business ventures at the company.
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The move is part of a portfolio optimization strategy that includes a larger focus on higher-end products and meeting changing consumer preferences, which includes a growing interest in the non-alcoholic beverage category. In 2024, non-alcoholic spirits grew by 29% year-over-year, according to IWSR data.
Late last year, the company dropped its Svedka brand, and over the past several years, Constellation has sold off the majority of its mainstream portfolio to shift focus to its premium category.
