AMASS Brands Group (AMSS) is making a bigger bet on functional hydration. The company announced Monday it plans to acquire a majority stake in HpO, a sparkling protein water brand, as consumer demand for high-protein, low-sugar beverages continues to surge.

The deal would boost AMASS's ownership in HpO from about 15% to roughly 50.0001% on a fully diluted basis. AMASS also secured a three-year option to buy the remaining interest at a price equal to two times revenue. Financial terms beyond the stock-based consideration weren't disclosed.

HpO's product is a sparkling protein water with 5 grams of plant-based protein per can, zero sugar, no artificial sweeteners, and just 22 to 30 calories per serving. Currently available in Lemon and Blood Orange flavors, the brand plans to expand into other ready-to-drink and hydration products.

AMASS said the acquisition aligns with the growing consumer shift toward protein-rich beverages, especially as GLP-1 weight-loss medications drive demand for high-protein, low-sugar options. “The widespread adoption of GLP-1 medications is only intensifying that demand,” CEO Mark Thomas Lynn said. “HpO sits at the convergence of these powerful forces.”

Industry research cited by AMASS estimates the U.S. protein water market was worth about $861 million in 2024 and could nearly double to $2 billion by 2034.

AMASS plans to use its wholesale distribution network and retail relationships to expand HpO's national footprint. The move follows the company's recent SAFE investment in Afterdream, a hemp-derived THC beverage brand, as part of its strategy to build a diversified portfolio across emerging beverage categories.

The transaction will be funded with AMASS common stock valued using the trailing 21-day volume-weighted average price at closing. The acquisition is subject to definitive agreements and customary closing conditions.

AMSS shares were trading up 12.25% at $2.29 at the time of publication Monday, though the stock remains near its 52-week low of $1.75.