ACTION ALERT: Stop unfair beverage taxation!

Posted December 20th, 2022 | Status:

We’re calling on BizFed leaders to support common-sense legislation that eliminates nonsensical tax burdens for kombucha producers. If you attended our November Board meeting, you may have sampled the fermented beverage. It’s a probiotic health drink made with a combination of tea, water, and a “symbiotic culture of bacteria and yeast” (SCOBY). Here’s a quick breakdown of the problem we’re mobilizing our grassroots army to solve – and why it matters.

  • Outdated federal tax rules treat some kombucha drinks as beer, unfairly subjecting these products to alcohol excise taxes and regulations.

  • This is slowing the growth of the kombucha industry, which has a notable presence in California. We are home to 80+ kombucha jobs and 5,500+ kombucha industry jobs.

  • Kombucha has the potential to be the nation’s fastest growing beverage category. The $800 million industry is estimated to grow to $1.2 billion with the right support and investments.

WHAT YOU CAN DO

We need YOUR voices to get the Keeping Our Manufacturers from Being Unfairly Taxed while Championing Health Act (“KOMBUCHA Act”) through Congress. Its passage will protect kombucha producers from unfair tax burdens and distribution challenges by changing the level at which taxation kicks in from 0.5% ABV to 1.25% ABV. Quick context check – light lager beers typical contain about 3.2% ABV.

Kombucha brewers and sellers shouldn’t be taxed for something they’re not distributing. It’s that simple.


DRAFT TWEETS

We’ve made it easy for you to amplify the voice of business on this important issue. All you need to do is copy, paste, and post.

#Kombucha is made from tradition. Join @BizFed in signing the petition to #protectrawkombucha and help make sure it stays that way: rb.gy/dfqkwx #KombuchaAct

Right now, there’s a Prohibition-era law threatening live #Kombucha. Support our business and protect the fermented beverages you love by joining @BizFed and signing the petition to #protectrawkombucha: rb.gy/dfqkwx

If you’re looking for a way to support small business, @BizFed has a favor to ask: a bill is in Congress right now to ensure that business can keep brewing our kombucha live and unpasteurized. Sign the petition to #protectrawkombucha: rb.gy/dfqkwx

Sign the petition and let @RonByden and @RepBlumenauer know @BizFed and the business community stands with them to make sure raw #kombucha stays on shelves: rb.gy/dfqkwx


Cheers to tasty innovation and fair taxation!

Tracy Hernandez
BizFed Founding CEO