Fermented Sciences, maker of the organic hard kombucha brand Flying Embers, has closed a US$25 million Series B round. Founded in California, US, in 2017, the start-up markets a unique refreshment in the dynamic space of “better-for-you” adult beverages. The company’s flagship product is infused with probiotics and adaptogens, with an alcohol by volume (ABV) content ranging from 4.5 to 7.5 percent. The health drink brewer has announced that over 70 distributors across 30 US states have signed on for distribution deals, while it further aims to disrupt the global beer market, valued at over US$600 billion.

The new funding will be put towards the company’s targets of accelerating growth, expanding its national footprint and meeting exponential demand for its hard kombucha, while innovating to create additional alcohol beverage lines that tap into the health-conscious consumer demographic. “It takes an extraordinary team to bring health and wellness to the alcohol industry,” says Mark Rampolla, Managing Partner, PowerPlant Ventures.

According to Innova Market Insights data, over 9.2 percent of global iced tea launches in the 12 months to the end of October last year featured kombucha in a rising range of flavors and formats. This is up from 8.7 percent in 2017 and just over 5.0 percent in 2016.

The financing round is co-led by the Ecosystem Integrity Fundand PowerPlant Ventures. Additional participating investors include Blueberry Ventures and Monogram Capital Partners.

Flying Embers Hard Kombucha is marketed as a US Department of Agriculture (USDA)-certified, organic, sugar-free and gluten-free beverage, brewed in an adaptogen root blend with live probiotics. The drink contains zero grams of sugar or carbs. Flying Embers’ current line of flavors includes Ancient Berry, Grapefruit Thyme, Lemon Orchard, Pineapple Chili, Ginger & Oak and Black Cherry.

The company was founded by beverage entrepreneur Bill Moses, Co-Founder and former CEO of KeVita (maker of a sparkling probiotic drink), which was sold to PepsiCo in December of 2016.

Fermented goodness for the adult health market
Kombucha is currently in vogue on the wellness market, largely due to its prominence as a gut health-boostic probiotic properties in line with the strongly trending “food as medicine” mindset. As a fermented drink, the beverage has the potential of being brewed with an alcohol content, marketed towards health-conscious adult consumers.

According to Innova Market Insights, market penetration of kombucha is significantly higher in specific countries, such as the US, where it reaches nearly 21 percent and in Australia, where it reaches over 40 percent, albeit from a tiny base. The UK – not a traditional market for iced tea, with the majority of consumers still preferring to drink their tea hot – has also seen high levels of interest, with kombucha accounting for over a third of iced tea launches. Penetration in Europe overall is slightly below the global figure on 8.8 percent, however.

Dr Hops Kombucha Beer, a vegan, high-alcohol kombucha beverage provider, recently expanded distribution of its products to the entire state of California, US. The drink brewer has expressed plans for additional expansion across the West Coast and nationwide to follow. No grain or flavoring is added to the products.

In March, Soda Press Co. (Australia) announced its “revolutionizing” of the kombucha scene with its release of “the world’s first certified organic kombucha concentrate that is also shelf-stable.” The concept is designed to be paired with the rapid expansion of SodaStream sparkling water markers in the market. SodaStream invested in a partnership with Soda Press Co., who also make organic, reduced sugar, soda syrups, at the start of 2019 to satisfy the premium end of Sodastreams’ flavor offerings. The product features a “live probiotics concentrate” claim on the front of the pack.