By: Lindsay Barr
CSO and Founding Partner, DraughtLab

(Featured Speaker – Refining Kombucha Flavor Through Sensory Science)
How many times a day do you taste your kombucha, tea, or other raw materials? It’s probably a lot! You may not know it, but when you’re tasting throughout the process, and making decisions from these tastings, you are running a basic tasting program.
Kombucha Tasting Programs
Tasting programs give you the tools to create the products your customers want to buy. By applying standard tasting techniques, you can demystify how customers experience the flavor of your products.
Now you may be thinking, “sounds awesome, but my brewery is too small to have a tasting program.” This is something we hear all the time, so in this blog post we will highlight what you can do right now to get started.
Keep it Simple
First, keep it simple! Every tasting you do should provide stakeholders the information they need to make good decisions. So, if you can’t easily identify the test’s purpose, don’t do it! Focus your resources where it will have the biggest impact first. This means that major research projects should take the backburner when you need to get your new product to market.
For more tips on focusing your resources, check out this blog post.

Develop Your Flavor Language
Clear product descriptions are at the foundation of any great tasting program. These product descriptions can help set brand targets, define differences between products, and identify when something might be off. But anyone who’s ever tried writing a product description from memory knows how intimidating and daunting this task can be. Start by using a unified lexicon to help guide your tastings. Product lexicons give you the framework to identify specific flavors so you can generate clear and actionable product descriptions.
Leverage Your Tasting Rooms
Chances are you’re already pouring your customers free samples, so why not use this opportunity to engage them for feedback? Your tasting room can be used to help take the guess work out of what your consumers experience. While your consumers may not be able to describe the intricacies of your product, they can tell you when something is “off”.
But before you just start asking your customers what they think about your products, there is a right and a wrong way of doing this. Anyone who has ever handed a customer a sample and asked, “do you like this?” knows that the answer is always “yes”. While it may feel good to get positive feedback, this response is not very useful.
By Jon Bernard
National Account Manager, Stomp Stickers
(Visit Stomp Stickers during KombuchaKon at Booth #404)

As a kombucha maker, you know the power of the ‘booch is strong. And whether you market your product as a gut-friendly health elixir, the fermented nectar of the gods, or a plain old delicious tonic, no doubt you’ve already given serious thought to how you’re going to package and present your brew. A killer label is going to be part of your packaging plan.
But while an eye-catching label is certainly a top priority, your kombucha labels need to do more than get somebody to grab that bottle. There are specific labeling requirements with which your kombucha labels need to comply. Let’s take a look at those requirements, and make sure your ‘booch is labeled correctly.
FDA or TTB?
Before creating a requirement-compliant kombucha label, you’ll need to know which requirements to follow. The difference between following Food and Drug Administration (FDA) or Alcohol and Tobacco Tax and Trade Bureau (TTB) requirements lies in alcohol content. Why? Because kombucha is a fermented drink, which means it naturally contains trace amounts of alcohol.
The difference between the two agencies and who will regulate your kombucha labeling requirements is in how much alcohol your product contains. If your kombucha contains more than 0.5% alcohol by volume it will fall under the TTB label regulations. Anything under that percentage, then you’ll need to comply with FDA guidelines instead. You’ll also want to review the Kombucha Code of Practice to ensure that it is labeled correctly according to the code.
Because the bulk of commercially-produced ‘booch falls well below that 0.5%, we’ll be focusing on the FDA guidelines below.
1. Main Display
This part of your requirement-compliant label is a bit flexible in terms of presentation. In other words, this means you can play with the layout – including name, logo, and graphic elements – to your heart’s content. Just make sure the following elements are easy to find and read.
- Your brand name. The name of your business must be clearly displayed.
- The name of the food product. You must use the word “kombucha.”
- The net amount of product. Display how much ‘booch is in your bottle.
2. Informational Panel
This is the panel many of us are familiar with, the white square on the back of bottles that tells you what’s inside. It’s critical to adhere to FDA guidelines when including information about calories and serving sizes by calculating those amounts using the 2,000 calorie-a-day diet that is the FDA standard.
- Business name and address. The manufacturer’s information must be legible and easy to find. If your kombucha is made and distributed by different companies, both names and addresses need to be on your label.
- Ingredients. While you don’t have to give away any secret recipes, you do need to list the ingredients of your brew.
- Nutrition facts. This includes calories per serving, calories from fat, amount of sugar, vitamins, etc., with both amounts and percentages displayed. How to describe “added sugars” is explained in this article.
- Allergy warning. You’ll need to check the ingredients you use in your kombucha against any potential allergens and make note of them somewhere on this part of your label.
3. Organic Statements
Labeling your brew as “organic” can be a big selling point, but it also has to be verifiably true. A company or product needs to meet strict requirements in order to become certified as organic. This is true for any ingredients you source for your brew that you want to label as organic as well. So before you add an organic claim to your label, make sure you’re actually qualified to do so.
If you are using organic ingredients, they may be listed as such in the ingredients panel; however, the word “organic” may not be used elsewhere on the bottle unless the brand is certified. To learn more about organic certification, KBI members can check out this presentation from VKK20.
4. Health Benefits
You have to be careful with any claims to potential health benefits you make around your kombucha. The FDA has very specific rules about health claims, breaking them down into three sub-types. Each type of health claim has its own set of guidelines you need to meet before you can use one on your label.
- Nutritional. Any claims to the nutritional benefits of your kombucha are easy to list. If it is genuinely low in calories, fat free, contains high levels of a vitamin or mineral, you’re allowed to state that on your label.
- Qualified. These health claims need to have scientific evidence supporting them. Beyond mere nutritional content, these claims usually make a statement about what your kombucha can do for someone. For example, if you have evidence supporting how the probiotics in your kombucha may help with stomach issues, go ahead and make that qualified health claim.
- Authorized. Authorized health claims must have scientific support, meet the Significant Scientific Agreement (SSA) Standard and pass an FDA review.
Final Thoughts
To sell your kombucha, your label needs to comply with all regulations and requirements specific to kombucha labels. FDA requirements govern your main label, informational label, and any health or organic claims you make about your brew. Once you know what your custom kombucha label has to have in order to be FDA compliant, you can brand your brew and design your label around all of that necessary information.
VISIT STOMP STICKERS AT BOOTH# 404 – Enter the Passport Program to win 500 free labels up to $200 from Stomp.
Author Bio: Jon Bernard is a National Account Manager at Stomp Stickers. Stomp is an e-commerce business that offers high-quality custom labels, stickers, boxes, canopy tents and more. Jon’s passion is helping his customers brand and market their products through a variety of custom printed items. To get help with your custom printing needs, visit Stompstickers.com or email Jon directly at jon.bernard@stompstickers.com.
Email: jon.bernard@stompstickers.com
Company Profile: Stomp Stickers offers the highest-quality custom stickers and labels to fit every industry’s needs. Our production facility has been printing premium-quality stickers and labels for more than 30 years, working with a wide variety of industries: cannabis, CBD, health & beauty, corporate, weddings, breweries, craft foods, restaurants, and beverages.
By Chelsie Kugler
Vice President of Business Development, CFOShare
(view CFOShare’s conference session here)

It is very common for small businesses to need an infusion of capital at some stage of development. Most of us don’t have wealthy family members and friends, so how do you find someone interested enough in your business to financially support it?
Yes, angels do exist! The angel investing sector is growing rapidly. Around the world, angel investing is providing the bulk of financing to companies, and in the United States, total angel investment is now far greater than overall venture capital (VC) investment.1
Angels don’t just live in California and New York. One study of over 1,500 American angel investors, found that 63 percent were located in other parts of the country, such as the Great Lakes, the Southeast and the Mid-Atlantic region.2 So take heart, there could be an angel in your own backyard.
What is an Angel Investment Network?
While angels are not naturally hanging out in the outfield or in a cornfield in Iowa, it means you will need to put in face time with local business organizations, the social community, and your computer to find them. Daina Trout, founder of Health-Ade Kombucha, shares some insights on the investor process in this podcast.
Local is key. Angel investors like to remain local with their cash and time. Wait, time too? Yes, top angels, who were previous business moguls themselves, will mentor and coach the businesses in their portfolio.
Angels rarely fly solo. They often join organizations like Rockies Venture Club and Pipeline Angels. Both of these angel networks are specific to their communities. Research which angel groups are in your area with on-line tools like Angel Capital Association, who currently boast over 400 angel groups in their database.
Local angel organizations come in many forms, but all have similar characteristics:
- Meet regularly to review business proposals and establish goals for the group
- Select entrepreneurs are invited make presentations to members
- Member angels decide whether to invest in the presenting business
- Conduct due diligence to validate the plans and statements presented
- Invest in a range of firms and industries for diversity
Once you’ve found your local group of angels, it is time to wow them with your pitch.
What do I need to attract an investor?
Angels often take a personal interest in a project and the person behind it…you! Some angels are likely to be less discriminating than professional investors and lenders because it is their own money. No two angel investors are the same in what criteria they look for but in general, you need to prove return on investment. Usually, angel investors want to see and understand the following before committing cash:
- Your product is developed or near completion
- You have a strong business plan
- A clear picture of the market for your product or service and realistic plan for market penetration
- Check out the SPINS presentations on KBI’s website for data about the Kombucha market in the US
- You have a polished Pro forma
- Shows the potential for a strong return on investment
- You demonstrate that the business is likely to grow rapidly
- How much you need to raise to stay cash positive
- You have an appropriate valuation with reasonable terms
- You have an exit strategy for the investor that is reachable within 5 to 7 years
Angel investing is risky and proving a strong return on their investment is going to be one of the most attractive aspects of your business for an angel. Once you have made connections with your local angel group, get ready to pitch and explain more about your business.
The proof is in the pro forma
From a well-crafted pro forma, an investor or owner should be able to perform what-if scenario analysis, calculate financial ratios, potential profit after taxes, determine future financial health and most importantly, return on investment.
Before starting, you will want to assess your skills in financial modeling. If you are not feeling confident, seek out professional CFO services to create a pro forma so you can focus on growing.
If you are going to model on your own, focus on the goals of your operation and ask yourself where it will be in 5 years. You can watch this free webinar to walk you through what investors look for in a pro forma and mistakes to avoid.
How much equity should I give an angel investor?
You’ve wowed them with a pitch, shown them the potential for return on their investment, and you’ve modeled the next 5 years with a pro forma. They want to give you cash in exchange for one simple thing: equity.
Generally, a syndicate of first round angel investors will ask anywhere in the range of 10 to 35 percent of the equity, with the average being right at 25%. Again, this is general, and it will be negotiated based on the investment amount, based on the valuation of your business, and on how much you are willing to sell.
Angel investing is a high risk/high reward style of investing. Angel investors know full well that they could lose their entire investment. They want to mitigate this risk by having a large stake in the business. There is no hard and fast rule for how much you should sell. The answer really lies on how much of the company’s equity you, as a founder, are willing to part with. Keep in mind, whenever you take money from an investor, you are also giving up a portion of control. Selecting the right angel that understands your vision is vital for the relationship to be successful long term.
The Hunt for Angel Investors Is Worth It in the End
Finding an angel investor who is willing to invest is not an easy task, but the effort will really pay off when you find the angel investor who is willing to devote time and money in your business. Angels are not investing in entrepreneurs for charity and you are probably not starting a company for laughs. There is hard work involved on both sides with the shared intent to succeed.
EXAMPLES OF ANGEL INVESTMENTS IN KOMBUCHA:
https://www.startbase.com/news/kombuchery-erhaelt-investitionen-in-siebenstelliger-hoehe/
View the original article here.
References
1 Financing High-Growth Firms: The Role of Angel Investors, Organization for Economic Co-Operation and Development (January 2012), https://www.oecd.org/sti/ind/49310423.pdf
2 Laura Huang, et al., The American Angel, Wharton Entrepreneurship and Angel Capital Association (November 2017), http://docs.wixstatic.com/ugd/ecd9be_5855a9b21a8c4fc1abc89a3293abff96.pdf \

Chelsie Kugler
Chelsie is the Vice President of Business Development at CFOshare. She helps small business owners improve their accounting and financial planning by surveying their company’s needs and aligning solutions internally or through CFOshare‘s outsourced team.