Feel the Float
Why I'm a big proponent of this better-than-alcohol alternative™
I don’t drink alcohol (never have), and growing up, I never felt like I was missing out, but as I’ve gotten older, I’ve started to see the appeal of a casual drink. I’ve been experimenting with various non-alcoholic beverages, including non-alcoholic beer, whiskeys, wines, aperitifs, and most recently, functional beverages.
I first encountered Hiyo about a year ago while visiting two friends who worked at Vitamin Shoppe at the time. They mentioned that a lot of customers were buying it, and the packaging looked cool, so I figured I’d give it a try. Since then, I’ve become a big fan of Hiyo—not just the product but the brand as well. I believe Hiyo has significant potential for growth over the next few years.
I’ll try to keep it concise and explain why by hitting:
An Overview on Functional Beverages
Happy In Your Own
The Path Forward
An Overview on Functional Beverages
Functional beverages are non-alcoholic drinks that offer health benefits beyond hydration and taste, often containing ingredients like vitamins, minerals, amino acids, and bioactive compounds. Here are some of the categories within this space:
Energy drinks: Caffeinated drinks that sparked the functional beverage trend in the late 1980s
Probiotic drinks: Dairy-based drinks like yogurt, kefir, and goat’s milk, as well as non-dairy options like fermented fruit juices
Prebiotic and postbiotic drinks: contain fibers that may improve gut health
CBD/THC drinks: Hemp extracts that may help with sleep, anxiety, and chronic pain
Adaptogen drinks: Traditional Ayurvedic and Chinese medicine ingredients for stress relief
Nootropic drinks: Substances aimed at improving brain function
Mushroom drinks: Some claim they enhance mental clarity
Collagen drinks: Some claim they improve skin health
Each of these subcategories serves a specific purpose and target audience but together form the “non-alcoholic functional beverage” category, which is in demand as more consumers choose to moderate their drinking.
What’s the Point?
According to Veylinx, 46% of drinkers are currently trying to reduce their alcohol consumption, and 52% of them are replacing alcohol with non-alcoholic beverages. Anouar El Haji, CEO of Veylinx, noted, “our research found that they're willing to pay premium prices for non-alcoholic versions of ready-to-drink cocktails. The rise of the 'sober curious' movement gives brands countless opportunities for growth in this segment.” The report also highlights that:
Demand for non-alcoholic canned cocktails is 48% higher among 21-35-year-olds than for those over 35
CBD-infused drinks increase demand by 18% among 21-35-year-olds
Mood-boosting blends with natural adaptogens and nootropics generate 29% greater demand among over 35s compared to standard non-alcoholic versions (i.e. Hiyo)
Dry January participants show 65% higher purchase interest than those who haven’t participated
Consumers, especially millennials and Gen Z, are choosing to “drink less but better,” with an increased willingness to pay for higher-quality, “better-for-you” products (I’ve written about this in more detail here).
Functional beverages are a great option for people who don’t want to drink, but still want a beverage that makes them feel something.
One I really like is Hiyo, a social tonic crafted with organic adaptogens, natural nootropics, and functional botanicals to elevate your mood and empower you to be truly happy in your own.
Happy In Your Own
Hiyo was founded in June 2021 by Evan Quinn, George Youmans, and Cygne Cooper, roommates at USC who were inspired to create Hiyo after family members were hospitalized with alcohol-related issues. Their goal is to "change the way the world drinks," offering a product that provides calm and sociability through natural, functional ingredients like adaptogens and nootropics. Their motto, “feel the float,” captures the unique sensation Hiyo aims to create.
The drink contains six functional ingredients designed to mellow you out and perhaps make you feel more social:
Ashwagandha relieves stress
Lion’s Mane promotes clarity
L-theanine improves focus
Lemon balm stabilizes mood
Passionflower: encourages relaxation
Ginger aids digestion
The “float” feeling is a big differentiator. I know it might sound like a fad, but I encourage you to try one. Maybe it’s placebo, but every time I’ve had a Hiyo I’ve felt noticeably more relaxed, happy, and it tastes great.
Their website says it best:
Feel the Float
“we aren’t just subbing out alcohol with a boring soda + lime or non-alc beer with no functionality. we believe that in order to be leaders of change, this new option has to be more rewarding than the status quo. hiyo is the better-than-alcohol alternative.™ better because of the premium, organic ingredients we source from across the globe; better because of the 'float' feeling those ingredients produce; better because of flavors so delicious that you crave them not chase them; better because it’s a decision that you can enjoy now and one you’ll be proud of later”
They have 4 flavors (3 original releases and one add-on):
Hiyo is non-GMO, gluten-free, vegan, 0% alcohol, only 30 calories, and it’s the only USDA organic certified social tonic on the market.
Unlike energy drinks, Hiyo has no caffeine, and the “float” feeling you get isn’t from CBD either - it’s really a function (no pun intended) of their blend of adaptogens and nootropics. Some consumers say it melts away stress, others say it makes them feel more present and talkative, and some say it helps get them to be more social.
Hiyo is sold in 4 packs for $15 or 12 packs for $45 ($3.75/can). You can also sign up for a subscription plan on their website and get discounted pricing ($3.19/can).
They also sell merch that gives off a very laid-back and chill vibe, akin to the brand’s image. Everything from their beautifully designed cans to their website has a uniform identity, which has helped this brand gain a sizeable following over its short history.
Recent Performance
Based on Nielsen data, Hiyo’s sales have grown 274% over the past 52 weeks to about $5 million. Nielsen captures sales in select retail locations, so if you factor in DTC channels, Hiyo may be generating around $10–$20 million annually. Regardless, based on my data and several sources, Hiyo is the fastest growing social tonic.
The brand’s growth has been fueled by several factors:
Targeted Digital Marketing: Hiyo leverages social media to connect to Gen Z and millennials, the primary demographics embracing the sober-curious lifestyle. Hiyo has amassed a significant following, with over 60k Instagram followers and a 4.7/5.0 rating from over 7k reviews.
Strategic Retail Partnerships: At the start of 2022, Hiyo’s organic social tonics began hitting the shelves at local, health-focused grocers in cities like LA, Chicago, and Austin. By July 2023, the brand had quadrupled the number of stores carrying their beverages, totaling more than 680 locations nationwide, including Vitamin Shoppe, Sprouts Farmers Market and Wegmans Food Markets. Based on their stocklist, Hiyo is currently available in over 2,100 locations.
Strong DTC Presence: By maintaining a direct-to-consumer sales channel, Hiyo has built a stronger relationship with its customers and can gain valuable insights to help fuel its future growth. Offering subscription plans allows Hiyo to generate recurring revenue and gain a more loyal customer base.
Authentic Brand Image: Hiyo’s brand image is a significant part of its appeal. It’s fresh, vibrant, and exudes a whimsical energy that resonates with modern, wellness-oriented consumers. The brand embodies the “better-for-you” movement while embracing the fun, social aspects traditionally associated with alcoholic beverages.
Key Partnerships: Hiyo recently partnered with Insomniac, the world’s leading music festival and live events experience creator to meet festival-goers' shifting sentiment towards a healthier lifestyle. As the exclusive provider of better-for-you and ready-to-drink social tonics, Hiyo will bring its alcohol alternatives to Insomniac’s 7M+ annual attendees, beginning with EDC 2024 Las Vegas, the world’s largest dance music festival. Additionally, Hiyo will be popping up with a special activation called The Hiyo House, as well as in the VIP and artist lounges. These partnerships will help Hiyo gain awareness and increase their consumer base.
Passionate and Visionary Founding Team: Hiyo’s founders, Evan Quinn (CEO), George Youmans (CRO), and Cygne Cooper (CBO) were friends in college and created Hiyo after family members were hospitalized for alcohol-related issues. Hiyo was born out of a necessity for a better alternative to drinking, and helping people be “happy in their own”. The team won UCLA's 2020 Knapp Venture Competition and Hiyo was named most disruptive startup of the year, and they’ve all continued to be integral to the brand’s success.
Before co-founding Hiyo, Evan worked as an MBA analyst at Mucker Capital and an Associate at Guggenheim Partners. George had branding and marketing roles at Red Bull and SnackNation, and Cygne has extensive experience in graphic design at Endeavor and Loki Artist Group, to name a few.
The Path Forward
Hiyo recently raised an undisclosed round of funding to support product development, expand retail distribution, and enhance marketing efforts.
As Hiyo looks ahead, there’s ample opportunity for growth:
Expand Product Line: Introducing new flavors, limited-edition releases, or different adaptogenic blends tailored to specific experiences, like “relax” or “focus,” would expand their product offerings and keep customers engaged.
Broader Retail Expansion: Securing shelf space in mainstream retail chains while carefully selecting store partners that match its brand could exponentially increase Hiyo’s reach. Imagine Hiyo as a staple in places like Whole Foods or Erewhon—premium stores where health-conscious consumers shop.
Collaborations and Co-Branding: Aligning with brands in adjacent wellness sectors—think yoga studios, meditation apps, or mindfulness influencers—could expand Hiyo’s visibility and solidify it as a lifestyle brand, not just a drink.
Enhanced Digital Marketing: With more sophisticated digital strategies, Hiyo could segment its audiences more effectively. As Hiyo grows, they should look to partner with influencers that resonate with the brand’s image.
Final Thoughts
Hiyo has an authentic founding story and an amazing product that has established the brand as more than just a drink; it’s a movement. By aligning with the growing wellness trends and the sober-curious shift, Hiyo is on track to become a staple for a generation that values mindfulness and conscious consumption.
As an investment, Hiyo has clear growth potential through product innovation, expanded distribution, and a highly loyal consumer base. If you happen to find some on the shelf, give it a try. Let me know if you feel the float.