Kombucha?

November 25, 2020

by a searcher from The University of Chicago - Booth School of Business in Denver, CO, USA

I own a corporate catering business that is struggling through COVID shutdowns. I have an opportunity to buy the equipment from a kombucha manufacturer that folded during the first round of shutdowns. Branding and training would come with the (heavily discounted) assets. I have room in my catering facility, and most of the licensure I would need is already in place.
1) does anyone here have experience in the space? What phase is it in? I read signs of expansion (12%/year for the next 4 years) but I also see a lot of mom-and-pop facilities that are probably struggling. I do not wish to become one of those.
2) on a personal note, do you like the stuff? I love a good beer/wine/cider, but can't find a kombucha that I like.

Long time lurker, first time question-poster. Take it easy on me.

Reply by a searcher
from Washington and Lee University in Miami Beach, FL, USA

1. I looked at a solid kombucha business in the last year. It was not a traditional B2C/B2B manufacturer. They sold the starter kits for home brew sets. What concerned me at the time was the downward/flattening trend in kombucha sales. That trend has since reversed and the do it yourself at home market is booming. I made an offer but was outbid.
2. I used to drink it somewhat frequently###-###-#### / week) but haven't had one since I lost the bid for above. :)

Reply by an investor
from The University of Chicago in Chicago, IL, USA

Have you considered rental? Linen rental is a great business / rental of select party-related equipment could be good too (avoid tents). Certainly not COVID resistant but I would lean towards something closer to your core business.

+1 more reply.

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