As Americans rethink alcohol, beverage brands and businesses — including a new San Antonio shop — are betting on drinks that promise social connection without the hangover.

Why it matters: Consumers are increasingly choosing beverages based on what they want drinks to do — energize, improve gut health or help them unwind — fueling a boom in products marketed around function.

Driving the news: On The Brightside is among the latest entrants, launching canned drinks made with Zembrin, an extract of the succulent kanna that founder Adam Terry says is designed to promote a calming, "pro-social" effect without intoxication.

• It joins brands like Recess, Hiyo and Trip, which market mood-support beverages as alternatives to alcohol or THC.

What's happening: Consumers are increasingly shopping for beverages by effects and occasions rather than traditional categories, Circana adviser Sally Lyons Wyatt tells Axios.

Zoom in: San Antonio's newly opened Kava Cantina, a nonalcoholic bottle shop in Timberwood Park, is betting on that shift, stocking booze-free drinks with kava, adaptogens, mushrooms, L-theanine and other functional ingredients.

• Owner Kandice Rae Kutugata tells Axios every product the shop currently stocks has a functional component or purpose, rather than simply being nonalcoholic.

What they're saying: "People aren't just asking, 'What can I drink instead of alcohol?'" Kutugata says. "They're asking, 'What's in this? What makes it different? What kind of experience am I looking for?'"

By the numbers: Functional beverages generated $31.3 billion in U.S. sales over the past year, up nearly 11% year-over-year and about 147% over four years, per NielsenIQ data shared with Axios.

The big picture: Younger consumers "are not necessarily abandoning alcohol — they are redefining what belongs in the adult beverage occasion," Lyons Wyatt says, pointing to moderation, novelty and mood support as growing priorities.

Reality check: Drinks with mood-enhancing ingredients aren't evaluated by the FDA for effectiveness, and evidence supporting their impacts varies widely by ingredient.

The bottom line: Americans aren't just choosing what to drink. They're increasingly choosing how they want drinks to make them feel.

America's state governments now run on two very different tax engines: income in many coastal and professional-class states, and consumption in Texas and much of the low-tax-growth Sun Belt.

Why it matters: States have built systems around which parts of the economy to tax — with different groups of residents feeling the burden.

• States like Texas that market themselves as low-tax havens often still collect heavily through shopping, gas, insurance, tourism and other transactions — while many blue and purple states rely more on wages, capital gains and corporate profits.

Zoom in: All that reliance on sales tax can make for a turbulent budget season as sales tax revenue growth slows.

• Gov. Greg Abbott and Texas' legislative leaders recently ordered state agencies to cut their spending by 3% in their upcoming budget requests — a tacit acknowledgment that after years of surpluses money might be short come the next legislative session.

Stunning stat: The most sales-dependent state in 2025 was Texas at 86.6% of state tax revenue, according to an Axios analysis of new Census Bureau state tax data.

• The most income-dependent state was Oregon (71%).

Flashback: When the Census Bureau began collecting state government finance data in 1902, there were no state sales taxes on general sales, tobacco, motor fuel or alcohol.

Friction point: The shift toward consumption taxes could make state tax systems feel lighter for high earners while taking a bigger bite from lower-income families.

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🏀 The Spurs yesterday announced their regular season schedule. It includes three games in Austin and two in Europe. Single-game tickets go on sale today at 10am. (NBA)

🍽️ Mixtli co-founder Diego Galicia will this fall open Filleman House, a brasserie-inspired restaurant serving steaks, burgers and oysters in the former Restaurant Claudine space on Grayson Street. (CultureMap SA)

🗳️ City voters will see a measure on the November ballot to reauthorize the the one-eighth-cent sales tax funding for Pre-K 4 SA for 20 years. (SA Report)

👋 Hey, it's Madalyn! I recently checked out the newly opened Sixty Vines and couldn't find much I didn't like.

Catch up quick: The North Texas-based chain known for having 60 wines on tap opened on Monday at The Shops at La Cantera in the former Kona Grill space.

What to try: Don't skip the hummus ($10). The edamame version was so good, I left plotting how to recreate it at home.

• The pan-roasted chicken ($24) checked all my boxes, with chickpeas, roasted tomato, hot pickled peppers and toasted garlic.
• The shrimp and smoked bacon pizza ($18) won me over with its garlicky punch.
• In a surprising turn at a place called Sixty Vines, I skipped the wine. Instead, I tried a frozen espresso martini ($14). I loved that it was made with Licor 43, the same vanilla liqueur used in carajillos.

The vibe: The dining room was buzzing, but the service remained warm and attentive.

Six-word review: Already planning my next trip back.

The Buc-ee's beaver is going maroon.

The state of branding: Texas A&M and Buc-ee's are teaming up on their first co-branded merchandise, starting with a T-shirt.

Catch up quick: Texas A&M earlier this year became the first university to sell Buc-ee's products on campus.

What they're saying: "As an Aggie, it's special to see Buc-ee's and Texas A&M come together in a way that celebrates both brands," Buc-ee's founder Arch "Beaver" Aplin III said in a statement.

What's next: More co-branded products are planned as Texas A&M celebrates its 150th anniversary, with additional releases to be announced later.