Lawmakers from California cosponsor bill to ease restrictions for raw kombucha producers.
Los Angeles, CA – Congressman Scott Peters (D-CA-52) and Congresswoman Doris Matsui (D-CA-6) are the latest congressional leaders from California to cosponsor a bill that proposes historic changes for the US kombucha industry. The KOMBUCHA Act (H.R. 2124/S. 892) would amend the Internal Revenue Code to increase the taxable alcohol-by-volume (ABV) threshold for kombucha from 0.5% to 1.25%, protecting raw kombucha from facing excise taxes intended for beer and relieving a burden that has plagued the young industry since its beginnings.
Mike Durighello of Whalebird Kombucha in San Luis Obispo, whose representative, Congressman Salud Carbajal (D-CA-24), cosponsored the bill earlier this year, sees the bill as essential for supporting local producers: “The KOMBUCHA Act will create jobs and grow the industry by reducing risk for the manufacturers, extending product shelf life, and lowering the barrier to entry for new brewers.”
The fermentation of kombucha produces a trace amount of alcohol, which protects the drink from pathogens. While this level hovers around 0.5% ABV, it is difficult to precisely control, as living cultures can change slightly when exposed to fluctuating temperatures. If left on loading docks or open shelves, raw kombucha faces a risk of becoming out of compliance.
This issue has forced small businesses to develop costly techniques, limit delivery areas, and shorten shelf life to remain in compliance with an alcohol limit they say is unreasonably low. The limit was first introduced during Prohibition and is significantly lower than globally accepted levels of trace alcohol (1-2% throughout Mexico, Canada, Australia and much of Europe).
Adam Gallegos, owner of Revel Kombucha Bar in Ojai, says the current legislation has restricted his distribution: “We would love to continue producing jun kombucha using traditional methods and be able to sell our beverages outside the local area, but… we worry that our beverages could fall slightly outside of compliance during transportation, which is a risk we can not afford to take.”
The KOMBUCHA Act, introduced by Rep. Earl Blumenauer (D-OR-3) and Sen. Ron Wyden (D-OR), is the industry’s attempt to change this 100-year-old legislation. It has received bipartisan support and no opposition but struggles to find a vehicle in Congress. To date, eight lawmakers from California have cosponsored the bill: Rep. Julia Brownley (D-CA-26), Rep. Salud Carbajal (D-CA-24), Rep. Lucille Roybal-Allard (D-CA-40), Rep. Jimmy Panetta (D-CA-20), Rep. Ted Lieu (D-CA-33), Rep. Scott Peters (D-CA-52), Rep. Doris Matsui (D-CA-6), and Senator Alex Padilla (D-CA).
Kombucha Brewers International, the leading trade association for kombucha producers, has created a petition for customers to urge their lawmakers to sign on in support of the bill. The petition, which has collected thousands of signatures, can be viewed here.
About Kombucha Brewers International: Kombucha Brewers International (KBI) is a non-profit trade association (501 c 6) that represents the commercial Kombucha Tea bottled beverage category globally. KBI strives to promote, protect and enhance the overall well-being of the industry by creating an open line of communication between brewers, consumers and regulators while advancing our industry through advocacy, education, research, and modern legislation.
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