Reps. Salinas, Smith, Sen. Wyden Champion Legislation Supporting U.S. Kombucha Industry

WASHINGTON, D.C. - Today, U.S. Representatives Andrea Salinas (OR-06) and Adrian Smith (NE-03), alongside Senator Ron Wyden (D-OR), introduced the KOMBUCHA Act, which would modernize outdated federal alcohol taxes and regulations on kombucha companies in Oregon and nationwide.

"Kombucha isn't comparable to traditional alcoholic beverages like beer, and taxing it as if it were doesn't make sense," said Rep. Salinas. "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."

"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," Senator 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 is an everyday beverage enjoyed for its probiotic benefits, and it shouldn't be taxed the same as beer or other alcoholic drinks," said Rep. Smith. I'm glad to join Congresswoman Salinas in introducing our KOMBUCHA Act to update outdated federal tax rules and ensure fair treatment for Nebraska's small kombucha brewers."

"Better Beverages supports the leadership of Congressman Adrian Smith and Congresswoman Andrea Salinas in advancing the KOMBUCHA Act. The current federal definition, rooted in outdated Prohibition-era standards, does not reflect modern fermentation practices and creates unnecessary barriers for responsible producers.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," said Better Beverages.

"We appreciate the efforts of Congressman Adrian Smith and Congresswoman Andrea Salinas for advancing the Kombucha Act. This update to outdated prohibition era standards will allow small businesses greater flexibility to create products consumers are looking for in their communities and allow producers to reach further into new markets," said Jessi and Nathan Hoeft, owners of Ensign Beverage.

"We at Spring Branch Kombucha, a small, family-run business in the Missouri Ozarks, greatly appreciate the efforts of Congressman Adrian Smith and Congresswoman Andrea Salinas for advancing the Kombucha Act. The existing federal definition, based on outdated Prohibition-era standards, creates unnecessary obstacles that disproportionately affect small producers like us.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," said Spring Branch Kombucha.

We appreciate the efforts of Congresswoman Andrea Salinas and Congressman Adrian Smith for advancing the Kombucha Act. 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," said Kendra Sepulveda, Director of Kombucha Brewers International.

"Bruja Sana Kombucha supports the leadership of Congressman Adrian Smith and Congresswoman Andrea Salinas in advancing the Kombucha Act. 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," said Daniela Guilbert, CEO of Bruja Sana Kombucha.

Kombucha contains trace amounts of alcohol produced by yeast during fermentation - which can trigger federal excise taxes and regulations covering alcoholic beverages. The KOMBUCHA Act would eliminate unintended tax and regulatory burdens by increasing the applicable alcohol-by-volume limit for kombucha from 0.5 percent to 1.25 percent. Kombucha would still have to meet all health and safety requirements generally applicable to nonalcoholic beverages as well as certain beverage alcohol labeling requirements.

To read the full text of this legislation, click here.

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