Kombucha Town

Living beverages for a better world

Kombucha Town

Living beverages for a better world

Bellingham, WA
Manufacturing
Food & Beverage
Kombucha Town brews energizing and refreshing live seltzer and kombucha drinks, packaged in cans that are easy on-the-go and easy on the earth.

$85,091

raised
122
Investors
$20M
Valuation Cap
8.0%
Annual Interest Rate
$250.00
Min. Investment
15.0%
Discount Rate
Conv. Note
Offering Type
08/08/22
Maturity Date
Reg CF
Offering

$85,091

raised
122
Investors
$20M
Valuation Cap
8.0%
Annual Interest Rate
$250.00
Min. Investment
15.0%
Discount Rate
Conv. Note
Offering Type
08/08/22
Maturity Date
Reg CF
Offering

Bonus Rewards

Get rewarded for investing more into Kombucha Town

$250+
Investment
StartEngine Owner’s Bonus
This offering is eligible for the StartEngine Owner’s 10% Bonus program. For details on this program, please see the Offering Summary section below.
$250+
Investment
Level 1
$250 - Can growler + 10 trees
$500+
Investment
Level 2
$500 - cooler backpack ($25/$30) + 20 trees
$1,000+
Investment
Level 3
$1,000 – 3 months product + 50 trees + Access to the brewers’ reserve flavor
$2,500+
Investment
Level 4
$2,500 – 10% off for life! + 150 trees + Access to Brewers’ reserve flavor
$5,000+
Investment
Level 5
$5,000 – Private Cocktail Experience/Mixologist + 250 trees + access to brewers reserve flavor + interest increase 9%
$10,000+
Investment
Level 6
$10,000 - VIP Experience + 500 trees + access to brewers reserve flavor + interest increase 10%
$50,000+
Investment
Level 7
$50,000 - VIP Experience + 500 trees + access to brewers reserve flavor + 12% Annual Interest Rate on notes
$100,000+
Investment
Level 8
$100,000 - VIP Experience + 500 trees + access to brewers reserve flavor + 15% Annual Interest Rate on notes

Reasons to Invest

Ranked among the top 10 beverage brands sold in the convenience store by SPINS and a feature of our product is set to air on CNN, CNBC, FOX, Disney, Food Network and Family Channel with 400+ airings in over 80M homes.
Sales are up from $1.1MM to $1.4MM over the last 52 week period (Aug 2019 - Aug 2020).
Kombucha market is projected to continue to grow at 17.5% over the next 3 years across retail spaces, the flavored and functional water market is expected to exhibit a CAGR of 11.5% over the next 6 years.

“Propel your adventure. Protect your planet.”

The Problem


Sugary beverages are detrimental to the health of consumers

Sugary beverages have damaging health effects and many “healthy” alternatives are no better. Kombucha Town creates healthy, delicious and energizing living beverages that are not only good for you, but also for the environment and our global community.

The Solution


Delicious, energizing kombucha drinks with amazing health benefits

Kombucha Town crafts Living Beverages that are good for people, community and planet. We brew in a near zero waste facility and create premium beverages that are as delicious and refreshing as they are good for you. With three product lines to choose from, Kombucha Town offers accessible products everyone can love, including the first ever Live Seltzer!

The Market


Exponential growth for the kombucha and functional beverages market

Across retail spaces, the kombucha category is projected to continue a bold growth of 17.5% over the next 3 years (source), and the flavored and functional water market is expected to surpass $76.75 billion in revenue by 2026 (source). Studies show that customers are trending toward healthier beverage choices, with functional water beverage predicted to grow by 11.5% between 2018 and 2026 (source).

Our Traction


Available at your favorite grocery store, with major media exposure underway

In 2019, Kombucha Town reached 1 million cans of kombucha sold (1 million bottles kept out of landfills) as well as $1 million in annual revenue.

Our drinks are now available for purchase at Whole Foods, Natural Grocers, Kroger, Sprouts and Harris Teeter among other food and beverage retailers. By building out a robust DSD network, we believe this will enable us to capture significant market share of the fastest growing channels. 

We were selected as the featured company in PBS’s “The Future of Sustainable Products”, edition of “Behind the Scenes”. A short segment of this feature is set to air on CNN, CNBC, FOX, Disney, Food Network and Family Channel with 400+ airings in over 80M homes. Kombucha Town was also ranked among the top 10 beverage brands sold in the convenience store market according to SPINS.

What We Do


Kombucha and Live Seltzers that taste and make you feel amazing

We brew and package all of our canned drinks at our brewing facility in Bellingham, WA, using our unique formulation and proprietary production method to ensure high quality and a robust flavor profile. We start by adding a symbiotic colony of bacteria and yeast (or SCOBY) to sweet tea, which then results in a process of fermentation, producing alcohol and amino acids. 


Our kombucha and live seltzers are both non-GMO verified, and made from certified fair trade ingredients sourced from locations abroad and right in our own backyard. Our kombucha brewers craft the healthiest and tastiest blend around using a variety of teas like Ceylon black and Guayusa mint combined with nourishing ingredients like lavender, sage, blood oranges, ginger, and more.

The Business Model


We sell our Kombucha through major retailers and D2C online

Our business model is both B2B, through retailers such as Whole Foods and Natural Grocers, as well as director to consumer through our website. Our sales growth went from $325,000 in 2016 to $1.2 million last year, despite being under capitalized with just $500,000 raised in equity to date.

How We Are Different


Better tasting, better for your body and better for the earth

Kombucha Town was the first company to market live kombucha in cans that are not only 100% recyclable but cost 50% less than glass bottles and are easy to take on the go. 

The Vision


Delicious, healthy kombucha made accessible to everyone

As an innovator in the quickly growing functional beverage industry, Kombucha Town has positioned itself for continued  growth. Our Live Seltzer not only combines two of the strongest emerging trends in the industry, but it’s also affordable for the average consumer. In 5 years, Kombucha Town aims to be available everywhere, from online to quality retailers, to convenience stores in food deserts, making healthy and delicious products available to everyone.

Kombucha Town plans to expand its product offerings to include a kids line of kombucha, performance enhancing recovery drinks, alcohol lines, and much more! All of our products will uphold our commitment to quality and provide better beverage options to our devoted consumer base. 

OUR LEADERSHIP


A small tight-knit family of passionate team players

Kombucha Town’s close-knit and highly skilled team includes 5 full-time employees and 4 part time employees, each of whom plays an integral part in helping the company function. Our company is proud to be made up of a diverse group of talented individuals, with more than half of our upper management roles led by women. Kombucha Town believes in a work/life balance and each member of the team has their own active hobbies such as mountain biking, stand-up paddle boarding, hiking, snowboarding, windsurfing, playing instruments, DJing, and spending time with their pups! As Kombucha Town has grown, so have our families and, over the last 3 years, our team has welcomed 4 new babies!

Why Invest


Join us today!

As the kombucha market continues to grow by an expected 17.5% in the next 3 years, and as we continue to expand sales and partnerships through our omni-channel strategy, Kombucha Town is on its way to becoming a household name. We have been ranked among the top 10 beverage brands sold in convenience stores by SPINS and our product will soon be featured on major TV networks in over 80 million homes with 400+ airings. Our drinks are available for purchase at major retailers such as Whole Foods, Stop and Shop, and Sprouts and we are in talks with many more at the moment. We invite you to join us in the next steps toward our vision of making our healthy and delicious products available to everyone!

In the Press

Good for You, Your Community and the Planet: Kombucha Town Launches Live Seltzer
January 1, 2017

So, what exactly is kombucha? It’s a fermented, refreshing, fizzy, invigorating tea beverage created by millions of microorganisms that come together to form a symbiotic colony of bacteria and yeast, otherwise known as a SCOBY. And if all that sounds a little complicated, let me assure you: all you

Father's Day Gift Ideas for Modern Dads
January 1, 2017

Ahh…Father’s Day. That one day in a year when we celebrate dads for being the awesome human beings that they are, and for always having our back regardless if he shows it or not (we’re sure you know what we mean!). Every dad deserves to feel special and appreciated on Father’s Day. And one of the

Offering Summary


Company

:

Real McCoy Tea Company

Corporate Address

:

210 E Chestnut Street, Bellingham, WA 98225

Offering Minimum

:

$10,000.00

Offering Maximum

:

$250,000.00

Minimum Investment Amount

(per investor)

:

$250.00











Terms


Offering Type

:

Convertible Promissory Notes

Type of Equity Converted Into

:

Class B Non-Voting Common Stock

Conversion Trigger

:

$1,000,000.00

Maturity Date

:

August 08, 2022

Valuation Cap

:

$20,000,000.00

Discount Rate

:

15.0%

Annual Interest Rate

:

8.0%
















What is a Convertible Note?

A convertible note offers you the right to receive Class B Non-Voting Common Stock in Real McCoy Tea Company. The amount of Class B Non-Voting Common Stock you will receive in the future will be determined at the next equity round in which the Company raises at least $1,000,000.00 in a qualified equity financing. The highest conversion price per security is set based on a $20,000,000.00  Valuation Cap or if less, then you will receive a 15.0% discount on the price the new investors are paying.  You also receive 8.0% interest per year added to your investment.  When the maturity date is reached, if the note has not converted then you are entitled to receive Class B Non-Voting Common Stock equal to your investment and interest back at a price per security determined by dividing the Valuation Cap by the aggregate number of outstanding equity securities of the Company as of immediately prior (on a fully diluted basis).



COVID Relief

This offering is being conducted on an expedited basis due to circumstances relating to COVID-19 and pursuant to the SEC’s temporary regulatory COVID-19 relief set out in Regulation Crowdfunding §227.201(z).

Offering maximum.

In reliance on this relief, financial information certified by the principal executive officer of the issuer has been provided instead of financial statements reviewed by a public accountant that is independent of the issuer, in setting the offering maximum of $250,000.

Expedited closing sooner than 21 days

Further, in reliance on Regulation Crowdfunding §227.303(g)(2) A funding portal that is an intermediary in a transaction involving the offer or sale of securities initiated between May 4, 2020, and February 28, 2021, in reliance on section 4(a)(6) of the Securities Act (15 U.S.C. 77d(a)(6)) by an issuer that is conducting an offering on an expedited basis due to circumstances relating to COVID-19 shall not be required to comply with the requirement in paragraph (e)(3)(i) of this section that a funding portal not direct a transmission of funds earlier than 21 days after the date on which the intermediary makes publicly available on its platform the information required to be provided by the issuer under §§227.201 and 227.203(a).

Investment Incentives and Bonuses*

*Annual Interest Rate subject to adjustment of 10% bonus for StartEngine shareholders. See 10% Bonus below.

Early bird

First 7 days of campaign - 10% Annual Interest Rate on notes

Next 7 days - 9% Annual Interest Rate on notes

Volume Perk

Level 1: $250 - Can growler + 10 trees 

Level 2: $500 - cooler backpack ($25/$30) + 20 trees 

Level 3: $1,000 – 3 months product + 50 trees + Access to the brewers’ reserve flavor

Level 4: $2,500 – 10% off for life! + 150 trees + Access to Brewers’ reserve flavor

Level 5: $5,000 – Private Cocktail Experience/Mixologist + 250 trees + access to brewers reserve flavor + 9% Annual Interest Rate on notes

Level 6: $10,000 - VIP Experience + 500 trees + access to brewers reserve flavor + 10% Annual Interest Rate on notes

Level 7: $50,000 - VIP Experience + 500 trees + access to brewers reserve flavor + 12% Annual Interest Rate on notes

Level 8: $100,000 - VIP Experience + 500 trees + access to brewers reserve flavor + 15% Annual Interest Rate on notes

*All perks occur when the offering is completed.

The 10% Bonus for StartEngine Shareholders

The Company will offer 10% additional bonus interest rate for all investments that are committed by investors that are eligible for the StartEngine Crowdfunding Inc. OWNer's bonus.

Eligible StartEngine shareholders will receive a 10% increase in the annual interest rate on Convertible Promissory Notes in this Offering. This means your annual interest rate will be 8.8% instead of 8%.

This 10% Bonus is only valid during the investors eligibility period. Investors eligible for this bonus will also have priority if they are on a waitlist to invest and the company surpasses its maximum funding goal. They will have the first opportunity to invest should room in the offering become available if prior investments are cancelled or fail.

Investors will only receive a single bonus, which will be the highest bonus rate they are eligible for.

Irregular Use of Proceeds

Example - The Company might incur Irregular Use of Proceeds that may include but are not limited to the following over $10,000: Vendor payments and salary made to one's self, a friend or relative; Any expense labeled "Administration Expenses" that is not strictly for administrative purposes; Any expense labeled "Travel and Entertainment"; Any expense that is for the purposes of inter-company debt or back payments.

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Most recent fiscal year-end:
Prior fiscal year-end:
Total Assets
$621,253.03 USD
$1,913,714.24 USD
Cash And Cash Equivalents
$154,083.40 USD
$137,668.71 USD
Accounts Receivable
$65,262.36 USD
$3,668.53 USD
Short Term Debt
$331,300.56 USD
$356,455.76 USD
Long Term Debt
$1,041,024.52 USD
$849,760.39 USD
Revenues And Sales
$1,206,337.49 USD
$1,443,068.91 USD
Costs Of Goods Sold
$492,015.59 USD
$914,893.43 USD
Taxes Paid
$0.00 USD
$0.00 USD
Net Income
-$42,519.46 USD
-$79,342.92 USD

Risks

A crowdfunding investment involves risk. You should not invest any funds in this offering unless you can afford to lose your entire investment. In making an investment decision, investors must rely on their own examination of the issuer and the terms of the offering, including the merits and risks involved. These securities have not been recommended or approved by any federal or state securities commission or regulatory authority. Furthermore, these authorities have not passed upon the accuracy or adequacy of this document. The U.S. Securities and Exchange Commission does not pass upon the merits of any securities offered or the terms of the offering, nor does it pass upon the accuracy or completeness of any offering document or literature. These securities are offered under an exemption from registration; however, the U.S. Securities and Exchange Commission has not made an independent determination that these securities are exempt from registration.


Updates

Campaign Extension + an exciting week ahead

11 days ago


Notice of Material Change in Offering

18 days ago

[The following is an automated notice from the StartEngine team].

Hello! Recently, a change was made to the Kombucha Town offering. Here's an excerpt describing the specifics of the change:


Kombucha Town extended the length of their campaign.


When live offerings undergo changes like these on StartEngine, the SEC requires that certain investments be reconfirmed. If your investment requires reconfirmation, you will be contacted by StartEngine via email with further instructions.

Notice of Funds Disbursement

25 days ago

[The following is an automated notice from the StartEngine team].

Hello!

As you might know, Kombucha Town has exceeded its minimum funding goal. When a company reaches its minimum on StartEngine, it's about to begin withdrawing funds. If you invested in Kombucha Town be on the lookout for an email that describes more about the disbursement process.


This campaign will continue to accept investments until its indicated closing date.


Thanks for funding the future.

-StartEngine

2-day planning session a HUGE success

about 1 month ago

CEO Chris McCoy is joined by our new director of sales, Sam Shisler, to give an update after a 2-day planning session at the KT offices in Bellingham. We're excited to start working with the Shisler Sales team!





Notice of Material Change in Offering

about 2 months ago

[The following is an automated notice from the StartEngine team].

Hello! Recently, a change was made to the Kombucha Town offering. Here's an excerpt describing the specifics of the change:


Kombucha Town provided financial statements and added new perks.


When live offerings undergo changes like these on StartEngine, the SEC requires that certain investments be reconfirmed. If your investment requires reconfirmation, you will be contacted by StartEngine via email with further instructions.

Campaign update: Exciting new distributors

about 2 months ago

It's been a productive week here at Kombucha Town. We're looking forward to seeing even more growth as we partner with Whole Foods and Aldi to bring kombucha and seltzers nationwide, and ready for a week of strategizing with our west coast sales team. Thanks to all our new investors! 


Happy Birthday Kombucha Town!

2 months ago

Hello!

We've been having a great week at the Kombucha Town office. As we head into the weekend, we have reached 102 investors with more than $85,000 invested. We shared this and other exciting news in a video update from Chris on Wednesday, but forgot to mention a super important milestone!

It's Kombucha Town's 9th birthday!

As we round off nine years as a company, we are especially proud of our awesome community! We've been seeing so many KT community members sharing their "Booch of the Day" on Instagram, and we love that you're enjoying our products and our mission of sustainability and healthy living. We couldn't have done it without you!

That's why we're clueing you into our exclusive September newsletter offer of 20% off any variety pack on our website! Don't miss this offer, and make sure to join our email list for epic monthly discounts, recipes and updates.



We've reached 100 investors!

2 months ago

We want to give a huge thank you to our growing community of investors. With your help, we're set to plant more than 3,000 trees in partnership with One Tree Planted. That's 15 acres! 



Whole Foods News!

3 months ago


Checking In from PeaceHealth

3 months ago

So excited to be bringing more investors on board! We decided to share the wealth with our front line workers at PeaceHealth. 

Show More Updates End of Updates

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