Safety Shot, a US-based health and dietary supplement firm, has revealed plans to buy Yerbaé Brands, a plant-based energy drink brand.
The agreement will combine Yerbaé's plant-based energy drinks, which generated $12 million in revenue in 2023, with Safety Shot's wellness-focused goods. The businesses want to position themselves for faster market expansion and take advantage of the rising demand for functional beverages.
In accordance with the arrangement agreement, 20 million Safety Shot common shares will be exchanged for all outstanding Yerbaé shares, including those issued through the settlement of performance and restricted share units.
Yerbaé is valued at $19.7 million in enterprise value and $15.2 million in equity as a result of the transaction. Following the deal, shareholders of Safety Shot will own roughly 75.8% of the merged business, with Yerbaé shareholders owning 24.2%.
Todd and Karrie Gibson founded Yerbaé in 2017 to provide plant-based energy drinks to consumers who are health-conscious and looking for alternatives to conventional options. Non-GMO, keto, vegan, kosher, paleo, and gluten-free diets can all be followed using Yerbaé's products.
"We believe that this acquisition could be a significant revenue catalyst for Safety Shot on top of an expected revenue growth rate of 50% expected in Q4 versus Q3," stated John Gulyas, chairman of Safety Shot. We think that Yerbaé's remarkable rise and well-established position in the market for plant-based beverages, which brought in almost $12 million in revenue in fiscal year 2023, may play a significant role in propelling our own prospective expansion.
CMI Research: Key Sugar Free Energy Drinks Market Insights
According to Coherent Market Insights (CMI), the sugar free energy drinks market is expected to increase at a compound annual growth rate (CAGR) of 5.62% between 2024 and 2031 due to rising customer demand for healthy energy beverages. It is anticipated that the market will have increased from its 2024 estimate of roughly US$ 14.55 billion to US$ 21.34 billion by 2031.
Analyst Opinion: Strategic Role in Sugar Free Energy Drinks Market Growth
According to a top research consultant Yash Doshi, consumers' increased health consciousness and preference for low- or zero-sugar beverages are the main factors propelling the industry's expansion.
Conclusion: Business Takeaways
The purchase of Yerbaé Brands by Safety Shot demonstrates the rising demand for sugar-free energy drinks as consumers look for lower-calorie, healthier options. This action highlights how crucial innovation is to the energy drink industry and gives companies a chance to profit from the shift toward functional, health-conscious drinks. Diversifying their product offerings can help businesses meet changing consumer tastes.
