Compared with a year before, sale velocities of the beverage were down, meaning more places are carrying kombucha, but may not be selling it as fast as before. Regulating sugar and alcohol content will likely involve some form of pasteurization or distillation to kill off excess bacteria and alcohol, a process that has the potential to damage the craft image of the drink.įood Navigator reported sales for the year ending February 24 of refrigerated kombucha and other fermented beverages rose 21% to $728.8 million. The company says it only uses four ingredients to make its fermented tea products, and the process is the same as making kombucha at home. This, however, could affect sales for the brand since it has developed a fan base due to its probiotic content, variety of flavors and use of cold-pressed juice from organic local produce.
In addition to paying $4 million, Health-Ade will also work toward a formulation change that will control the variability of the sugar and alcohol content in the beverage. Although Health-Ade has the power to take these cases to court, a straightforward payment allows Coca-Cola to easily disentangle itself from a web of lawsuits and start fresh with an unencumbered brand. The decision to settle could also have to do with the fact that Coca-Cola invested $20 million in Health-Ade this summer. With so many court cases against kombucha companies, it’s hardly a surprise that Health-Ade would look to avoid expensive litigation - both financially and to its reputation - and instead favor a penalty payment. O Organics, Better Booch, The Bu and Rowdy Mermaid Kombucha all faced similar lawsuits, but all have been dismissed by the attorneys involved. According to federal regulations, this may not rise above 0.5% ABV if the drink is to remain qualified as non-alcoholic.įinding a balance that keeps kombucha raw but prevents alcohol from forming as the tea sits on the shelf is not easy, and Health-Ade is dealing with those consequences.īut Health-Ade is not the only kombucha company to face legal battles as a result of the natural sugar and alcohol content of the beverage. When these bacteria eat the sugar, it produces alcohol. The fizzy drink is made from tea, sugar and a kombucha culture made from bacteria or yeast. Kombucha, however, requires some processing in order to prevent alcohol and sugar levels from fluctuating too much and violating federal regulations.
"Raw," much like "natural," does not have a formal definition, but is generally considered to be unprocessed food. Kombucha toes the line between being considered "raw," with live cultures in every bottle, and complying with regulations associated with commercial distribution. Health-Ade itself has been sued five times since 2017, so it makes sense that the company wants to put these legal battles behind it for good with a formulation change. The other three lawsuits the company faced were dismissed, Food Navigator reported. This kombucha case is one of many that has been filed against a variety of drink manufacturers.
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