Constellation Brands Acquires a Minority Stake in Hiyo
Constellation Brands, the parent company of Corona Beer, has recently taken a significant step in expanding its footprint into the non-alcoholic beverage market by acquiring a 25% minority stake in Hiyo. This move aligns perfectly with Constellation Brands’ broader strategy to tap into a burgeoning non-alcoholic market, aiming to significantly enhance its presence in this category.
Expanding the Non-Alcoholic Category
Hiyo, a functional social tonic created by Evan Quinn and George Youmans in 2019, stands as the result of this strategic move. The founders, both in their late 20s, sought to create a non-alcoholic option that could offer the benefits of alcohol without the associated risks. This initiative led to the development of a fills-in tile non-alcoholic social tonic, which is now available across 3,000 U.S. retail stores, including stores like Plaintext and Whole Foods. The company is expected to continue this momentum, aiming for a significant increase in sales and market share.
The Unique Position of Hiyo
Hiyo’s rapid growth is a testament to its unique positioning in the non-alcoholic category. With a 212.7% year-over-year increase in retail sales last year, Hiyo has become the largest contributor to this market. The product is available in four varieties, including passionfruit tangerine, and is set to expand further by prioritizing sustainable growth. This growth is supported by the Boots of Health, ensuring that future sales can indeed overtake those of traditional non-alcoholic beverages.
Constellation’s trailblazing Approach
Constellation Brands’ journey into the non-alcoholic category is marked by its Cutting-Edge Visions (CEV) model, which is centered around investing in new categories aligned with where consumers are looking. This approach allows the company to cater to a growing demand for functional, healthy, and socially engage products. Hiyo exemplifies this philosophy, offering consumers an innovative and sophisticated option that combines the benefits of functional ounces with the health profile and social appeal of traditional beverages.
