Constellation Brands has acquired a minority stake in Hiyo, enhancing its non-alcoholic beverage portfolio to cater to the growing consumer preference for healthier drinking options.

Target Information

Constellation Brands, Inc. (NYSE: STZ), a prominent player in the beverage alcohol industry, has taken a significant step by acquiring a minority stake in Hiyo, a brand known for its organic, non-alcoholic social tonic. Hiyo is specifically crafted with a proprietary blend of adaptogens, nootropics, and botanicals, designed to cater to consumers' evolving tastes for moderation and flavorful alternatives. Each Hiyo can contains ingredients such as ashwagandha, L-theanine, lion’s mane, lemon balm, passion flower, and ginger, delivering a refreshing beverage that is both low in calories and has 0% alcohol by volume (ABV).

With an emphasis on providing diverse options, Hiyo currently offers four enticing flavors: Blackberry Lemon, Peach Mango, Strawberry Guava, and Watermelon Lime. The brand has already made an impressive mark in the non-alcoholic drinks segment, with over 93% of its consumers also purchasing alcoholic beverages, thereby enhancing participation in traditional drinking occasions. This strategic positioning aligns well with Constellation’s existing portfolio of products.

Industry Overview

The beverage alcohol industry in the United States has been experiencing a significant transformation over the past few years, with growing interest in healthier and non-alcoholic options. According to industry data, the market for non-alco