Hiyo Secured $20.8 Million in Funding Round
The beverage company will use the new capital to expand its marketing and distribution reach across the United States.
Updated on Oct. 6, 2026 in Beer
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Constellation Brands led a $20.8 million funding round for non-alcoholic beverage producer Hiyo. The brand, which creates adaptogen-infused tonics, is currently seeing rapid growth in distribution points.
Why it matters
Constellation Brands invested in the producer to align its portfolio with growing consumer interest in non-alcoholic and adjacent beverage categories. This move highlights the broader industry shift toward alcohol-free alternatives.
Hiyo products contain zero alcohol and 30 calories per can. The company has achieved a 750% increase in distribution points and is projected to sell more than one million cases in 2026.
The players
Hiyo
A Los Angeles-based beverage producer that manufactures non-alcoholic tonics containing adaptogens and nootropics.
Constellation Brands
A major international producer and marketer of beer, wine, and spirits that has begun diversifying its beverage portfolio.
Live Nation
A global entertainment company that manages live events and venues and has expanded into beverage brand investments.
The details
The oversubscribed funding round also featured participation from Live Nation Ventures and Santatera Capital, while Taste Tomorrow Ventures and AlderTree Family Partners invested for the first time. Hiyo plans to leverage these funds to scale its market presence through strategic partnerships with hospitality and live entertainment firms like Tao Group Hospitality and Daybreaker.
Timeline
February 2025: Constellation Brands acquired a minority stake in Hiyo.
December 2025: Live Nation acquired an equity stake in Hiyo.
October 6, 2026: The $20.8 million funding round was announced.
2026: Hiyo is on track to sell more than one million cases.
Culture Shift
The rise of Hiyo reflects a significant cultural shift toward mindful consumption and the rejection of traditional high-alcohol beverage standards. This investment mirrors the broader societal movement of consumers trading standard alcoholic drinks for functional, low-calorie alternatives.
Consumers can expect to see Hiyo products appear in more retail and entertainment venues as the company expands its distribution footprint. This increased availability makes it easier for shoppers to access low-calorie, non-alcoholic drink options at events and stores.
The takeaway
The rapid growth of functional, non-alcoholic tonics shows that beverage companies are increasingly banking on health-conscious consumer preferences. Investors are prioritizing brands that offer lifestyle-aligned products rather than traditional alcohol-based refreshment.
Further reading
For more on the evolving market of alcohol alternatives, visit Beer.
Source note: This article includes information reported by Just-Drinks.
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Would you consider purchasing non-alcoholic social tonics as a replacement for traditional alcoholic beverages?
