L Catterton re-ups in Australian kombucha brand

The size of the deal was not disclosed. The proceeds will go towards global expansion by establishing more distribution channels. Nathan Schy, previously of Kind Snacks and CPG Group, will join as chief customer officer to accelerate this global growth, according to a statement.

Remedy was founded in 2012 by Sarah and Emmet Condon, a young couple who started out by making home-brewed kombucha in their kitchen in Melbourne. Kombucha is a probiotic drink with a sweet and sour taste made by adding beneficial bacteria to fermented green tea or black tea. It is low in calories and contains live gut-friendly bacteria.

Remedy positions itself as an affordable brand: a case of 24 250-millimetre bottles costs around AUD 49 (USD 33). Moreover, the product contains only natural ingredients and is sugar-free. The absence of sugar eliminates the risk of further fermentation, which means the drink remains stable throughout its shelf life.

Remedy claims to be the market leader in Australia and the third-largest kombucha brand globally. It is also the fastest-growing brand of its kind in the US, with sales increasing 272% year-on-year.

The goal is to expand distribution points in the US from 7,000 to 10,000. Existing distribution partners include large retailers like Walmart, Costco, and Target. New partnerships are being launched with premium grocery brands including Wegmans, The Fresh Market, and Fresh Thyme.

Kombucha has become an international investment trend. Last year, VIG Partners has agreed to acquire a majority stake in Teazen, a South Korean producer of tea-based health drinks. The company achieved a world first in 2019 by commercialising powder-based kombucha products through freeze-drying technology.

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• Topics
• Australasia
• Early-stage
• Consumer
• Australia
• food & beverage
• L Catterton