Hastings, NE (July 13, 2021) – Congressman Adrian Smith (R-NE-3) has joined a bipartisan group of Representatives to cosponsor the first piece of legislation in Congress to support the rapidly growing kombucha industry in Nebraska after meeting with constituent Ensign Beverage. The bill would protect kombucha with up to 1.25% alcohol by volume (ABV) from being categorized as beer in the tax code.

Since 1995, kombucha, a live, fermented tea, has rapidly grown into a $2.1 billion industry. However, it has been plagued by regulations that don’t account for this new class of beverage, which has trace amounts of alcohol that can rise slightly above the current limit, 0.5% ABV, in certain conditions but remain far below intoxicating levels.

The KOMBUCHA Act, “Keeping Our Manufacturers from Being Unfairly Taxed while Championing Health Act,” amends the Internal Revenue Code of 1986 to increase the taxable alcohol-by-volume threshold for kombucha from 0.5 percent to 1.25 percent, recognizing that kombucha is not consumed like a beer or wine, and does not have the same effects.

The bill, introduced by Rep. Earl Blumenauer (D-OR-3) and Sen. Ron Wyden (D-OR),  has received strong bipartisan support but has faced challenges finding a vehicle for its passage. Congressman Smith’s addition to the bill as the Ranking member on the House Subcommittee on Select Revenue Measures has added significant weight to the effort. 

Jessi Hoeft of Ensign Beverage in Hastings, NE. Jessi, who has been meeting with Congressman Smith on this issue for several years, says she is “happy to be a part of this industry’s growth and change. With the support of Representative Smith and the passing of this bill, we will confidently continue to grow our business and produce kombucha of the highest quality.” 

Jessi’s efforts offer a clear example of the importance of individuals in changing laws, says Hannah Crum, president of the leading trade association for kombucha, Kombucha Brewers International: “We have been working to make the KOMBUCHA Act the law of the land for four years… In addition to having the support of key legislators, our success will also depend on the voices of consumers who reach out to their representatives.”

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About Kombucha Brewers International:

Kombucha Brewers International (KBI) is a non-profit trade association that represents the commercial Kombucha 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 the industry through advocacy, education, research, and modern legislation. To learn more, visit www.kombuchabrewers.org.

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Tacoma, Washington –Senator Maria Cantwell (D-WA) has signed on to the first major piece of legislation to support US kombucha businesses, including over thirty businesses in Washington state: a bill that would protect kombucha with up to 1.25% alcohol by volume from being categorized as beer in the tax code. 

Kombucha brewers, hit hard by COVID-19 restaurant closures, have been lobbying for the change for several years but feel an increased urgency in the wake of the pandemic– increasing the alcohol-by-volume allows for easier and broader distribution of the live beverage.

The KOMBUCHA Act, “Keeping Our Manufacturers from Being Unfairly Taxed while Championing Health Act,” proposes to amend the Internal Revenue Code of 1986 to increase the taxable alcohol-by-volume (ABV) threshold for kombucha from 0.5% to 1.25%.

While the ABV for traditionally fermented kombucha averages 0.5%, it fluctuates slightly due to the nature of living cultures and is difficult to keep at precise levels. This issue has forced small businesses to develop costly techniques and shorten shelf life to comply with the limit, which was set during Prohibition and clashes with globally accepted levels of trace alcohol ranging from 1-2%. Many fermented foods have such variability of trace alcohols and are not subject to such regulation, proponents of the bill say.

This is the second year Senator Cantwell has cosponsored the bill; introduced by Rep. Earl Blumenauer (D-OR-3) and Sen. Ron Wyden (D-OR),  it has received strong bipartisan support and no opposition but has faced challenges finding a vehicle for its passage. Brewers are hoping the need to rebuild local economies in the wake of the pandemic will add urgency to the matter.

A group of kombucha companies met with the Senator’s office in March to discuss the issue and the shifts they have had to make to stay in business this year. If the KOMBUCHA Act passes, says Lowell Profit of Glorybucha in Arlington, “We can finally be assured of the hope that has come to change our industry forever.”

Julie Davidson, who started Komadre Kombucha during the pandemic, faced major challenges due to the strict regulations: “I appreciate Sen. Cantwell’s support of the KOMBUCHA Act and look forward to a future when kombucha producers can thrive, unfettered by burdensome tax codes and other barriers to small businesses that support community wellbeing.”

The bill is currently being reviewed by the Senate Finance Committee.

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About Kombucha Brewers International:

Kombucha Brewers International (KBI) is a non-profit trade association that represents the commercial Kombucha 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 the industry through advocacy, education, research, and modern legislation. To learn more, visit www.kombuchabrewers.org.

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Los Angeles, CA (June 16, 2021) – Kombucha Brewers International (KBI), the leading global trade organization for commercial kombucha brewers, has enlisted bipartisan support for a common-sense update to the antiquated tax code for alcoholic beverages.

The KOMBUCHA Act, “Keeping Our Manufacturers from Being Unfairly Taxed while Championing Health Act,” would amend the Internal Revenue Code of 1986 to increase the applicable taxation alcohol-by-volume threshold for kombucha from 0.5 percent to 1.25 percent. Kombucha would still meet the health and safety requirements applicable to nonalcoholic beverages as well as certain beverage alcohol labeling requirements. 

The bill has received strong bipartisan support, with the recent addition of Congressman Adrian Smith (R-NE-3), the Ranking member on the House Subcommittee on Select Revenue Measures, after meeting with constituent kombucha producer Jessi Hoeft of Ensign Beverage in Hastings, NE. Jessi, who has been lobbying for the change for several years, is “happy to be a part of this industry growth and change. With the support of Representative Smith and the passing of this bill, we will confidently continue to grow our business and produce kombucha of the highest quality.” 

Sen. Ron Wyden (D-OR), the Chairman of the Senate Finance Committee, which considers all tax legislation, has been championing the KOMBUCHA Act in the Senate since 2017. Rep. Earl Blumenauer (D-OR-3), senior member of the Ways and Means Committee, the tax-writing committee in the House, also introduced the bill in the House along with Rep. Brian Fitzpatrick (R-PA-1). 

Both Rep. Blumenauer and Sen. Wyden have extensive experience with updates in this area of the tax code, having enacted changes in recent years for craft beer brewers and hard cider producers.  

“The past year has been incredibly hard on businesses in Oregon and across the country, especially as supply chains have been disrupted. Still, kombucha is one the fastest growing beverage industries in the world,” Blumenauer said.  “There’s no reason why kombucha brewers and sellers should get taxed like beer. Our common-sense legislation would eliminate this burden and support a burgeoning industry that has a major impact on Oregon’s food and beverage economy.”

“The growth of kombucha production in Oregon and nationwide creates jobs and a beverage folks enjoy,” Wyden said. “It’s been a particularly difficult year for small businesses, and our bill would modernize taxes and regulations so these businesses can continue to grow and sell their products in stores across the country.”

“This legislation not only protects family businesses but also meets the needs of the community,” says Hannah Crum, founder and president of KBI, “as consumers pull away from sugary soft drinks in search of traditionally fermented beverages.” 

KBI has set up a letter campaign so that people who value access to raw, unpasteurized kombucha may urge their Senators and House members to sign on to support the bill.  The petition (viewed here) has already generated over a thousand emails despite limited distribution.

“We have been working to make the KOMBUCHA Act the law of the land for four years,” says Crum. “We continue to build strong bipartisan support for this common-sense tax law update. The purpose of our advocacy is to educate lawmakers and their staff about this important legislation and the economic and health impact the Kombucha industry has on communities across the nation. In addition to having the support of key legislators, our success will also depend on the voices of consumers who reach out to their representatives.”

For more information on the KOMBUCHA Act campaign or to sign up to talk to your legislators, please visit https://kombuchabrewers.org/lobbying/ To learn more about Kombucha Brewers International and the efforts of the organization, visit www.KombuchaBrewers.org.

About Kombucha Brewers International:

Kombucha Brewers International (KBI) is a non-profit trade association that represents the commercial Kombucha 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 the industry through advocacy, education, research, and modern legislation. To learn more, visit www.kombuchabrewers.org.

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Los Angeles, CA (August 1, 2020) – Kombucha Brewers International (KBI), the leading trade organization committed to promoting and protecting commercial kombucha brewers around the world, will host its seventh annual KombuchaKon, the largest conference and trade show for kombucha brewers, manufacturers and industry professionals worldwide, virtually via Zoom on Sept. 17-18, 2020. As one of the fastest-growing beverage categories, there will be many topics of discussion to unpack over the course of two days including breakout sessions on the hard kombucha market and how craft brewers can tap into this space, a kombucha market analysis and presentation on upcoming trends hosted by data platform SPINS and much more.  

The education and networking event will virtually bring kombucha brewers from all around the world together to participate in small group breakout sessions to share ideas and knowledge while discussing the common challenges they face and the solutions that can guide the industry forward. To encourage attendance and networking, KBI will offer its popular Passport Program in which attendees have the opportunity to win exciting prizes.

Additionally, attendees will hear from industry leaders, fellow brewers and manufacturers covering relevant topics including several sessions on the hard kombucha space, a discussion on the newly launched Code of Practice, how to build an e-commerce platform, advice for entrepreneurs and more.

More than 400 representatives from kombucha brands internationally are scheduled to attend the virtual conference, including Health-Ade Kombucha, Brew Dr. Kombucha, GT’s Kombucha, Humm Kombucha, among many others.

“Though there have been challenges we’ve faced these last few months, I’ve seen such resilience and strength from our industry – with larger brands stepping up to help smaller brewers, and the industry banding together to donate kombucha to our healthcare heroes,,” said Hannah Crum, founder and president of KBI. “Because of this, we decided to center the theme of Virtual KombuchaKon 2020 around ‘Cultivating Resilience.’ While brewers around the world will not be meeting in-person this year, we’re thrilled at the opportunity to provide the same level of education and networking but on a virtual platform. It’s such an exciting time for the industry, and we’re looking forward to connecting so many passionate brewers of kombucha.”

For more information on Virtual KombuchaKon 2020 or to sign up to attend, please visit www.kombuchakon.com. To learn more about Kombucha Brewers International and the efforts of the organization, visit www.KombuchaBrewers.org.

About Kombucha Brewers International:

Kombucha Brewers International (KBI) is a non-profit trade association that represents the commercial Kombucha 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 the industry through advocacy, education, research, and modern legislation. To learn more, visit www.kombuchabrewers.org.

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