Kombucha is a sugared tea fermented into a mildly carbonated and fruity vinegar-flavored beverage that is available in a multitude of different flavors (McHugh and Sinrod, 2019; Chakravorty et al., 2019). Even though kombucha has become more popular in recent years and became available in grocery stores, it is still a fairly niche beverage. This article explores opportunities and considerations related to offering kombucha in your farm market.
Opportunity
Beverages are becoming more important for our lifestyle. According to a survey from the Hartman Group (2019), 65 percent of Americans "always have a beverage on hand" and for 62 percent of respondents health and wellness play an important role in the choice of beverage.
There are differences among the generations: millennials are more curious to try out new beverages they have never had before (64% of Millennials), while boomers are less adventurous (only 29% of Boomers like to try new beverages). The same is true when it comes to knowledge of kombucha. A Mintel survey (2019a) found that 46% of responding consumers that do not buy kombucha do not know what it is, while 21% were not interested and 16% did not like the taste. Out of the non-buyers of kombucha, 51% and 50% were Baby Boomers and Gen X respectively and only 39% and 37% of younger millennials and older millennials did not know what kombucha is.
The main selling point of kombucha appears to be the consumers' belief in its probiotic properties. According to another Mintel survey (2019a), 66% of responding consumers that drink kombucha do so for the probiotic content, which is even more important to them than the taste (57%) and overall health benefit (39%). When it comes to gender, kombucha appeals especially to women, who are the target market for "gut healthy claims" and they also enjoy the taste more than men (Mintel, 2019b).
So how can you introduce kombucha in your sales mix? We spoke with a farm market owner in Pennsylvania who is successfully offering five different kombucha flavors on tap.
Case Study
Kombucha is the number one sales item for Oley Valley Organics, PA
Oley Valley Organics (OVO) is a family run farm with a natural food store in Oley, Pennsylvania, west of Reading in Berks County. The market offers the farm's produce along with local and regional producers' vegetables, fruits, herbs, baked goods, wine, and other value-added products. Select groceries and home goods are also available. Kombucha is the number one sales item for the store.
When the Oley Valley Organics Farm expanded to include the Oley Valley Organic and Natural Food Store three years ago, owner Barb Dietrich and her husband Mike decided to carry kombucha on tap because Barb is passionate about health and wellness. The store started out with one tap and quickly expanded during the last three years to offer a rotating selection on five different taps. A walk-in cooler was added recently to increase cold storage capacity for refill kegs. The kombucha is sold either in a take-out cup or in a refillable growler. They carry multiple sizes of both the cups and growlers.
When asked for advice for markets considering adding kombucha to their product mix, Barb advises that offering a flavor selection is a plus. If this is not feasible, setting up one tap is a great start. Growler sales help to create a loyal customer base that returns to purchase refills. Word-of-mouth advertising was the best marketing strategy and satisfied customers helped to increase the demand for this product. Oley Valley Organics does not produce kombucha on the premise. Instead, the owners work with porTch tea, a local producer. Sourcing from another local business creates cross-promotional opportunities to increase the exposure of both the farm market and the kombucha producer.
Further Considerations
If you do not want to start with a tap, bottles and cans are an easy way to introduce kombucha to your customers. According to Mintel (2018), kombucha in cans might appeal more to customers that have not tried it yet as the packing hides the cloudy appearance (from the yeast and bacteria, aka "mother"). In comparison to glass bottles, cans are lighter and may also come with a lower price tag.
Food Safety
According to Richard Kralj, Food Safety and Nutrition Educator at Penn State Extension, if an operator would like to start offering any food items and beverages, it is always a good idea to consult with the Pennsylvania Department of Agriculture, Bureau of Food Safety to learn the requirements under the law. Currently, a "residential style kitchen" at a farm to prepare food and serve to the public falls under the Limited Food Establishment regulations (3 Pa.C.S.A Sub Section 5721-5737). Furthermore, in the case of kombucha, the key factor is keeping alcohol under .05% and watching the level of acidity as beverages must maintain a pH below 4.6. Usually, kombucha has a pH range of 2.5-3.5.
Sources
Chakravorty, S., Bhattacharya, S., Bhattacharya, D., Sarkar, S. and Gachhui, R., 2019. Kombucha: A Promising Functional Beverage Prepared From Tea. In Non-Alcoholic Beverages (pp. 285-327). Woodhead Publishing.
Hartman Group, 2019. Modern Beverage Culture in America. January 17, 2019
McHugh, T. and A. Sinrod.2019. Kombucha: How Is It Processed?
Mintel, 2019a. Tea and RTD Teas - US - August 2019. Reasons for Not Drinking Kombucha
Mintel. 2019b. Tea and RTD Teas - US - August 2019. Reasons for Drinking Kombucha
Mintel, 2018. Cans could bring new consumers into the kombucha market. October 2018.
