As consumers moderate alcohol intake during January, one adult non-alc (ANA) brand is setting its sights on scaling year-round with the help of a new $19 million investment.
Los Angeles-based Hiyo filed a Securities and Exchange Commission Form D earlier this month announcing the round. The Form D amount includes Series A funds, prior convertibles and a “recapitalization,” the brand reported.
The founders would not disclose the Series A equity portion at this time.
“While I’m unable to comment on specifics of the raise at this time, the buzz inside and outside Hiyo is so palpable that 2025 should set up to be a historic year for our brand,” CEO Evan Quinn told BevNET.
Founded in 2021 by Quinn, George Youmans and Cygne Cooper, Hiyo makes ANA cocktails sold in 12 oz. slim cans. The four seltzer varieties – Blackberry Lemon, Peach Mango, Strawberry Guava and Watermelon Lime — utilize the functional properties of ashwagandha, l-theanine, lion’s mane, lemon balm and passion flower to create relaxing “social tonics.”
Along with its distribution in Sprouts, Meijer and Wegmans, Hiyo launched into H-E-B last month. Last spring, the brand announced it had signed a five-year deal with electronic music event promotion company Insomniac, bringing Hiyo to all the promoter’s festivals.
At the time of the Insomniac announcement, Hiyo’s founding team also reported that it had raised $2.1 million – an oversubscription of an expected $1.5 million bridge round – which included capital from angel investors, Insomniac Holdings and Santatera Capital.
Santatera is a Guadalajera, Mexico-based venture fund specializing in early-stage investments in food and beverage brands like Mezcla, Tia Lupita Foods, wildwonder and Cure Hydration, among others.
Spruce & Norton managing partner Ian Knowles was listed as a board member on the recent SEC filing. According to his LinkedIn profile, Knowles has been a board member since the brand launched. Knowles is also a board member of TÖST and Barrel One Collective.
ANA category sales were $823 million in 2024, a 27.2% increase year-over-year, according to market research firm NIQ. While the ANA category as a whole continues to grow, the ready-to-drink set, where Hiyo is positioned, rose 167% last year.
Although NA beer still dominates ANA sales, RTDs are “expected to have the fastest growth rate through 2028, off a lower base (+10% volume CAGR, 2024-2028),” according to bev-alc research group IWSR.