APAC SPSFAM Mid Year 2016

Background

WHAT IS KOMBUCHA?

• Fermented tea: Naturally rich in probiotics and healthy acids • 4 ingredients: Tea, Water, Sugar, and SCOBY  • SCOBY = Symbiotic Culture of Bacteria & Yeast • Most brands brew “raw”,  contain some level of alcohol • Enjoyed for thousands of years to promote HEALTH! • 150 years of research, mostly international • Improved digestion, immunity, energy, metabolism • “Makes me feel good” • Naturally low in calories and sugar, effervescent and DELICIOUS! • Kombucha has a unique composition:

• Acetic acid ferment (like vinegar) • Plethora of organic & amino acids • Low pH (typically 2.9‐3.5) • Residual sugars 

• Complex sediments  • Natural carbonation 

Background

HISTORY OF COMMERCIAL GROWTH

• 1995: First to market, GT’s Kombucha • 2000’s: Steady growth with new brands  • 2010: Voluntary withdrawal of kombucha • Alcohol thought to be >0.5% ABV • Reformulated brands came back • +30% growth in natural channel • +50% + growth in grocery channel • ~$600M in 2015 • Growth BEYOND kombucha • 40 founding companies, now 120  breweries • Since 2010: HUGE GROWTH • 2014: KBI formed

• 90% of commercial bottles on shelves • WE NEED AN APPROPRIATE & FAIR  STANDARD!