🥭 Solving Hard Kombucha’s Reputation Problem

Hey there, beer aficionados! Zoe Licata dropping by with a quick note. As you know, you're currently sipping on the Lite Edition of our Daily Briefing—a tasty teaser, no doubt. But let me spill the beans on a little secret: our editorial team works harder than a beertender during happy hour to bring you the latest updates in the industry. And here's the kicker: we couldn't do it without our Insiders. They're the unsung heroes behind every scoop, providing the fuel that keeps our editorial engine running.

With full access to Brewbound.com, plus exclusive insights straight from our team of reporters, becoming an Insider isn't just a subscription—it's joining a community of movers, shakers, and tastemakers. I hope to see you on the Inside!

Five years ago, hard kombucha was expected to become the next big “fourth category” product, building off the initial momentum of hard seltzer, but promising bolder flavors and potential gut health benefits. 

The fermented beverage accounted for $3.8 million in dollar sales in Circana-tracked off-premise channels in 2018, more than double the previous year. Meanwhile, the overall kombucha segment (non-alc and bev-alc) was a $1.2 billion industry in the U.S., and was on pace to be a $5.45 billion industry by 2025, according to Grand View Research, Inc.

By 2020, total kombucha had grown to just $1.8 billion, and hard kombucha made up about $12 million of that. However, in the past two years, hard kombucha has faced declining numbers, even past the initial effects of the COVID-19 pandemic.

The apparent stall of the segment is not a mark of failure, but rather a harsh mix of bad timing, off-point consumer marketing strategy, and unrealistic early growth expectations, according to many still playing in hard kombucha. Slow and steady might still win out, they believe.

Insiders can read more here, including keys to hard kombucha growth, the segments reputation problem and comments from leaders at Jiant, JuneShine, InvestBev, NOVA Easy and Mate Maker.

Urban Chestnut Brewing is a defendant in two lawsuits from lenders claiming the St. Louis, Missouri-based brewery owes them nearly half a million dollars.

Insiders can read more about the loans’ schedules and Urban Chestnut’s output.

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The Brewbound Podcast will feature an interview with Bernstein analyst Nadine Sarwat breaking down the factors influencing a potential sale of Boston Beer Company, as well as potential suitors.

Also on this week’s agenda is Ball Corp’s investor day, and a Circana webinar giving “a fresh take on craft beverage alcohol.” We’ll have any highlights that may come out of the events. 

The Kelce brothers and Hulk Hogan are in the beer business now. 

Super Bowl champions Jason and Travis Kelce are now the “largest investors” in Garage Beer, the Ohio-based light lager brand. The brothers and New Heights podcasters “will be involved in every aspect of the business, including brewing, distribution, sales, marketing and national expansion efforts,” per the announcement. 

The Kelces were also joined in the light lager wars of 2024 by Hulk Hogan. The former pro wrestling champion and former A-B InBev exec Terri Francis launched Real American Beer, via Breakthru Beverage in Florida, Missouri, Colorado and Minnesota. 

Hogan, who announced his sobriety in 2023, has since adopted a “moderation lifestyle,” Francis told Brewbound. 

Those moves come amidst an increased focus on light lager in and out of craft. They also come under a backdrop of continued sales declines for A-B’s Bud Light. However, as Brewbound’s Zoe Licata noted, the declines keep coming for Bud Light, but they’re decelerating on the lower base after -20%-plus declines last year.

Get more scan data, including a mixed performance for Voodoo Ranger, which is still on the ascent even as some of its offerings are on the decline.

In other news, Athletic Brewing has acquired another former Ballast Point San Diego-based production facility. This one is a big one in Miramar that will double the non-alcoholic beer maker’s production once it opens in 2025.

Creating experiences is a key to the future of the business. Burial Beer’s Doug Reiser and Brewbound’s Jess Infante discussed on the latest edition of the Brewbound Podcast. Plus, an Anchor strategy session with the Brewbound team.

Schilling Hard Cider is expanding into hard lemonade and the early returns are looking good.

It was a week of legal news too:

• Judge Rules in Favor of Anderson Valley in Lawsuit with Reyes’ Harbor
• Investor Lawsuit Accuses Big Storm Brewing of Money Laundering, Brewery Founder Denies Allegations

The latest edition of A Round With … features Alvarado Street’s J.C. Hill, discussing a decade of brewing, lagers and working with his dad.

Catch up on more headlines of the last week:

• Crowns & Hops Named Samuel Adams Brewing the American Dream Winner
• CGA: All 3 Bev-Alc Categories Record Growth Vs. Average Sunday on Mother’s Day
• CPI: May Beer Inflation Outpaces Total Bev-Alc, Wine and Spirits At and Away From Home
• Pronghorn Makes First NA Investment in Mocktail Club
• Southern Glazer’s Founder and Chairman Harvey Chaplin Dead at 95.

For a funnier take (and more GIFs) on the beer biz, here’s Brewbound’s Insider’s Week in Beer.

Brewbound is excited to announce three additional speakers for the Brewbound Live business conference December 11 and 12 in Marina del Rey, California. 

The two-day conference will bring together leaders from all three tiers for business-focused conversations on driving the bev-alc industry forward, data presentations, networking and brand building at the Marina del Rey Marriott. 

Joining the speaker roster are:

• Arthur Moye, owner and CEO of Full Circle Brewing;
• Kaleigh Theriault, director of thought leadership, beverage alcohol vertical, NIQ;
• Brian “BK” Krueger, VP of business development and portfolio strategies, Bump Williams Consulting.

They join previously announced speakers include: 

• Natalie Cilurzo, co-owner, Russian River Brewing;
• Peter Skrbek, CEO, Deschutes Brewery;
• Lester Jones, chief economist and VP of analytics, National Beer Wholesalers Association;
• Jennifer Hauke, founder and president, Draftline Technologies.

Additional speakers will be announced in the coming weeks. Interested in speaking? Follow this link to see our speaker guidelines. 

In addition to the mainstage programming and networking parties, Brewbound Live will feature opportunities for one-to-one conversations between brewers and bev-alc brands and retail buyers from chains such as Whole Foods Market. Registered attendees will be considered for meetings with buyers, as space is limited. Find out more details here.

Brewbound Live tickets are available now.