Home.Kombucha FAQs
Kombucha FAQs
TTB has received many inquiries about kombucha beverage products. These Frequently Asked Questions (FAQs) are intended to provide general guidance to the public and to producers and distributors of kombucha. The chart following these questions provides a summary of key requirements applicable to the production of kombucha. If you have any questions about this guidance, please contact Jeff Salisbury of TTB's Advertising, Labeling, and Formulation Division at (202) 453-2250 or Toll Free (866) 927-ALFD (2533) or via email at alfd@ttb.treas.gov.
General
A. While there is variation among kombucha products, the term "kombucha" generally refers to a fermented beverage produced using a mixture of steeped tea and sugar. Some kombucha also have fruit juice or other flavors added during production. This mixture is typically combined with a culture consisting of yeast strains and bacteria.
K2. Are kombucha alcohol beverages?
A. TTB's initial testing of kombucha in the marketplace reveals that many of these products contain at least 0.5 percent alcohol by volume. These products are alcohol beverages and are consequently subject to regulation. Some kombucha contain less than 0.5 percent alcohol by volume and may continue to be marketed as non-alcoholic beverages.
It is important to note that regardless of the alcohol content of the finished beverage, when kombucha contains 0.5 percent alcohol or more by volume at any time, it must be produced on qualified premises subject to TTB regulation.
K3. What is TTB doing about kombucha on the market?
A. TTB is coordinating with the Food and Drug Administration (FDA) to ensure that kombucha currently on the market complies with Federal laws. Our primary concern is to ensure that consumers are not misled about the nature of alcohol beverage products that might be marketed as non-alcoholic beverages. It is important that consumers are adequately informed about the nature of these products.
We have identified commercial producers, analyzed samples of kombucha from the marketplace, and tested the samples for alcohol content. We continue to work with producers of kombucha so that they may come into compliance and to ensure that their products are appropriately labeled.
Labeling of Kombucha
K4. Does the Federal Alcohol Administration Act (FAA Act) apply to kombucha with an alcohol content of 0.5 percent or more?
A. If you are a producer, importer, or wholesaler of alcohol beverage products you may be subject to the permit, labeling, and advertising requirements of the FAA Act, depending on the classification of the alcohol beverage product.* The question of whether a kombucha product falls within the classification of a wine, malt beverage, or distilled spirits product under the FAA Act must be made on a case-by-case basis, depending on the formulation and method of production.
* For more information on the FAA Act, see 27 U.S.C. 201, et seq.
Some alcohol beverages are subject to tax as wine or beer but are not subject to the requirements of the FAA Act. For example, wine containing less than 7 percent alcohol by volume and beer that is not made with both malted barley and hops are exempt from the labeling requirements under the FAA Act* and must comply with FDA labeling requirements as well as the marking requirements of the Internal Revenue Code of 1986 (IRC), as amended. Thus, a kombucha beverage that is classified as beer because it is fermented from a substitute for malted barley (such as sugar) and which is not made with both malted barley and hops is not subject to regulation as a malt beverage under the FAA Act.
* For more information on brewery products not subject to TTB labeling and advertising regulation, see TTB Ruling 2008-3.
K5. Are kombucha containers required to bear a health warning statement?
A. The container of any alcohol beverage product sold or distributed in the United States with an alcohol content of 0.5 percent or more must bear the health warning statement required by the Alcoholic Beverage Labeling Act of 1988 (ABLA).* This requirement applies regardless of whether the product is subject to the labeling requirements of the FAA Act.
* For more information on ALBA and the TTB regulation, see 27 U.S.C. 215 and 27 CFR part 16.
Tax Classification of Kombucha
K6. How will TTB classify kombucha containing 0.5 percent or more alcohol by volume for tax purposes?
A. Because the term kombucha does not refer to a recognized classification of alcohol beverage, the classification of such products under the IRC will depend on the formulation and method of production. For example, under the IRC*, beer may be fermented from malted barley or a substitute for malt, such as sugar.
* For more information on the applicable law and the TTB regulation, see 26 U.S.C.5052(a) and 27 CFR 25.15.
If the alcohol content of a kombucha product is 0.5 percent or more alcohol by volume and the alcohol is derived from the fermentation of sugar or another substitute for malt, it will generally** be classified as beer.
**Please note that it is possible to produce a kombucha-style product as wine or a distilled spirits product. Producers of kombucha may provide a formula for evaluation with detailed information about the ingredients used in their product and the method of production to the Advertising, Labeling, and Formulations Division. This is necessary for us to advise producers about the classification of their products, possible qualification requirements, and potential labeling requirements.
K7. What if my kombucha product contains less than 0.5 percent alcohol by volume at the time of bottling, but the alcohol content increases to 0.5 percent or more due to continued fermentation in the bottle?
A. Under the law, TTB considers these products alcohol beverages and, as such, the applicable tax rate applies as does the requirement to show the health warning statement. Please refer to the chart below for more information on the applicable tax rates.
Bringing Kombucha Producers into Compliance
K8. What requirements apply to my production of kombucha as beer?
A. If your kombucha contains 0.5 percent or more alcohol by volume and is classified as beer, you are required to qualify as a brewer under 27 CFR part 25 of the TTB regulations. Such a beer would be subject to tax. Please refer to the chart below for more information on the applicable tax rates.
If we classify your kombucha as beer, you must remove it in a container that complies with the marking and labeling requirements under part 25. Your kombucha may be subject to FAA Act requirements if we classify it, based on the submitted formula, as a malt beverage as the term is defined under the FAA Act. The regulations at 27 CFR 25.55 require a brewer to file a formula if he or she intends to produce any fermented product that will be made by any method of manufacture that is not generally recognized as a traditional process in the production of a fermented beverage designated as "beer," "ale," "porter," "stout," "lager," or "malt liquor."
In addition, as previously noted, if your kombucha contains 0.5 percent or more alcohol by volume, your containers must bear the health warning statement, as outlined under 27 CFR part 16.
K9. How do I qualify as a brewer?
A. To qualify as a brewer, you must file and receive approval of a brewer's notice and a brewer's bond. To learn more about qualifying as a brewer, you may click here or contact TTB's Brewery Applications Section, toll free at 1-877-882-3277.
You also should contact State and local alcohol regulatory authorities to learn about State and local requirements.
K10. What requirements apply to my production of kombucha as wine?
A. If we classify your kombucha as wine, you are required to qualify your premises under 27 CFR part 24 of the TTB regulations. Such a wine product would be subject to tax. See chart below for more information on taxes for wine products.
The regulations at 27 CFR 24.81 require the proprietor to file a formula that designates all ingredients and, if required, describes each process used to produce the wine.
You must remove your wine from your premises in containers that comply with the marking and labeling requirements under part 24. The product also may be subject to FAA Act requirements if we classify it, based on the submitted formula, as wine as the term is defined under the FAA Act. If the kombucha product is made as wine and contains 7 percent or more alcohol by volume, it is wine and the labeling and advertising requirements of 27 CFR part 4 will apply.
In addition, as previously noted, if your kombucha contains 0.5 percent or more alcohol by volume, your containers must bear the health warning statement, as outlined under 27 CFR part 16.
K11. How do I qualify a wine premises?
A. To qualify a wine premises, you must file and receive approval of a registration and bond. If your kombucha is classified as wine as the term is defined under the FAA Act, producers also must file and receive approval of an application for Federal Basic Permit under the FAA Act. To learn more about qualifying a wine premises, you may click here or contact TTB's Winery Applications Section, toll free at 1-877-882-3277.
You also should contact State and local alcohol regulatory authorities to learn about State and local requirements.
K12. May I produce kombucha at a location that is not qualified with TTB for the production of alcohol beverages as long as the finished product contains less than 0.5 percent alcohol by volume?
A. Yes. However, then you must ensure that the product never reaches 0.5 percent alcohol by volume or more during production or after packaging. (See K14 and K15 below.)
K13. What Federal tax applies if my kombucha is beer?
A. Section 5051 of the IRC imposes a tax on all beer brewed or produced, and removed for consumption or sale, within the United States, or imported into the United States. The rate of tax is $18 per barrel containing not more than 31 gallons and a like rate for any other quantity or for fractional parts of a barrel would apply. A reduced rate of $7 a barrel would apply to the first 60,000 barrels of beer removed for consumption or sale by qualified brewers in the United States who produce not more than 2,000,000 barrels of beer during a calendar year.
K14. What Federal tax applies if my kombucha is wine?
A. Section 5041 of the IRC imposes a tax on all wine in bond in, produced in, or imported into the United States. The rate of tax is $1.07 per gallon for still wine and $Â 3.40 per gallon for sparkling wine that contains more than 0.392 grams of carbon dioxide per 100 milliliters of wine. A small domestic wine producers credit of $Â 0.90 per gallon on still wine would apply to the first 100,000 gallons of wine removed for consumption or sale by qualified proprietors who produce not more than 250,000 gallons during a calendar year. There is no credit on sparkling wine.
Determining Whether Kombucha is an Alcohol Beverage
K15. What if my kombucha contains less than 0.5 percent alcohol by volume at the time of bottling, but the alcohol content increases to 0.5 percent or more due to continued fermentation in the bottle?
A. Under the law, TTB considers such products alcohol beverages. For example, the regulations provide that brewers must use a method of production to ensure that the alcohol content will not increase while in the original container after removal from the brewery. If your kombucha contains less than 0.5 percent alcohol by volume you may consult TTB to ensure that your method of manufacture complies with the requirement that the alcohol content will not increase.
K16. What if my kombucha is intended to be kept refrigerated, but it is stored by the retailer in an unrefrigerated area, and the alcohol content increases to 0.5 percent alcohol by volume. Am I held responsible for the taxes?
A. Yes. Refrigeration of the product is not an adequate method of ensuring that the alcohol content will not increase while in the original container after removal, because you cannot control whether the product will be refrigerated after removal. To avoid possible tax liability, you must use a method of manufacture (such as pasteurization) that will ensure that the alcohol content of the beverage will not increase while in the original container after removal.
Distributors of Kombucha
K17. For kombucha that contain 0.5 percent or more alcohol by volume, what responsibilities do distributors and retailers have?
A. Retail and wholesale dealers of kombucha with 0.5 percent or more alcohol by volume must register with TTB as dealers in alcohol beverages, using form TTB F 5630.5d. Retail and wholesale dealers must meet the requirements outlined under TTB regulations at 27 CFR part 31. Wholesalers and importers must obtain permits if the kombucha is a wine, malt beverage, or distilled spirits product subject to the FAA Act. Dealers also should contact State and local alcohol regulatory authorities to learn about State and local requirements.
Personal Use Exemption
K18. Can I produce kombucha containing 0.5 or more percent alcohol by volume for my personal or family use without paying Federal excise tax?
A. Federal law (Section 5053(e) of the IRC) and TTB regulations (27 CFR 25.205) allow an adult to produce, without payment of tax, a limited amount of beer for personal or family use and not for sale. The amount produced may not exceed 200 gallons per calendar year for households of two or more adults, or 100 gallons per calendar year for households with one adult. There is a similar exemption for wine at Section 5042(a)(2) of the IRC and 27 CFR 24.75, but Federal law provides no exemption for the home production of distilled spirits. (See our "FAQ" on home production.) Home producers should also contact State and local alcohol regulatory authorities to learn about their requirements.
| Page last reviewed/updated: 09/04/2012 |
No FEAR Act | Disaster Relief | Treas.gov | Inspector General | White House | Recovery.gov |
USA.gov | USA Freedom Corps | Webmaster