Wyden Champions Bill Defending the U.S. Kombucha Industry

Wyden Champions Bill Defending the U.S. Kombucha Industry

The legislation would update outdated laws that unfairly tax non-intoxicating kombucha the same as beer

Washington, D.C. - U.S. Senator Ron Wyden (D-Ore.), said today that he, along with Representatives Andrea Salinas (D-Ore.) and Adrian Smith (R-Neb.), have introduced a bill that would exempt kombucha from taxes intended for beverages with much higher alcohol content.

"A serving of kombucha contains about as much alcohol as an overripe banana, so there's no reason to tax it like it's a full-on alcoholic beverage," Wyden said. "It's past time to sober up our tax code and give kombucha producers a fair shake, and that's what our bill is all about."

"Kombucha isn't comparable to traditional alcoholic beverages like beer, and taxing it as if it were doesn't make sense," Salinas said. "We need to modernize the tax code so this industry isn't unfairly burdened. Our KOMBUCHA Act will level the playing field and unlock new opportunities for local businesses in Oregon."

"Real, raw kombucha supports healthier outcomes for consumers, but current regulations have encouraged a market of less-healthy beverages that compromise quality to meet outdated laws," said Jared Englund, Founder and CEO of Lion Heart Kombucha in Portland. "Senator Wyden's advancement of the Kombucha Act would bring U.S. policy in line with other countries and allow a kombucha microbrew industry to flourish. I've been a commercial kombucha producer for 15 years and passage of the Kombucha Act would allow me and other brands to provide consumers with tastier, healthier products."

"Better Beverages supports the leadership of Senator Ron Wyden, Congressman Adrian Smith, and Congresswoman Andrea Salinas in advancing the KOMBUCHA Act," said Better Beverages. "The current federal definition, rooted in outdated Prohibition-era standards, does not reflect modern fermentation practices and creates unnecessary barriers for responsible producers. Updating this framework will better align regulation with today's industry, support small businesses, and expand consumer access to safe, innovative products."

"We at Spring Branch Kombucha, a small, family-run business in the Missouri Ozarks, greatly appreciate the efforts of Senator Ron Wyden, Congressman Adrian Smith, and Congresswoman Andrea Salinas for advancing the Kombucha Act," said Spring Branch Kombucha. "The existing federal definition, based on outdated Prohibition-era standards, creates unnecessary obstacles that disproportionately affect small producers like us. Updating this policy is critical to supporting small business innovation, strengthening our community, and ensuring consumers continue to have access to the diverse and growing kombucha market."

"We appreciate the efforts of Senator Ron Wyden for advancing the Kombucha Act," said Kendra Sepulveda, Director of KBI. "The existing federal definition, based on outdated Prohibition-era standards, is no longer aligned with the modern kombucha industry and creates unnecessary obstacles for consumers and producers alike. Updating this policy will support innovation, strengthen businesses, please consumers, and contribute to a more dynamic and growing economy."

"Bruja Sana Kombucha supports the leadership of Senator Ron Wyden, Congressman Adrian Smith, and Congresswoman Andrea Salinas in advancing the Kombucha Act," said Daniela Guilbert, CEO of Bruja Sana Kombucha. "As an international producer, we recognize that the current federal definition, rooted in outdated standards, does not fully reflect the living nature of kombucha or the realities of modern fermentation. Updating this framework will not only benefit U.S. producers, but also help strengthen the global kombucha community, support small businesses, and encourage continued innovation and growth across markets."

Kombucha only has trace amounts of alcohol, usually less than 0.5%, compared to the 4-7% in beer. A person would have to consume between five and ten bottles of kombucha to equal the alcohol content in one beer. However, because of the natural fermentation process, the alcohol percentage in kombucha can occasionally increase slightly above 0.5%, especially during transportation, triggering taxes that cover alcoholic beverages. The KOMBUCHA Act would increase the applicable alcohol-by-volume limit for kombucha from 0.5 percent to 1.25 percent, eliminating the tax and regulatory burdens on kombucha producers.

Text of the bill is here.