Kombucha class-action settlements end legal saga
The fiasco involving excessive alcohol content in Kombucha beverages will likely come to an end for Millennium Products and Honest Tea, after both companies settled class-action lawsuits claiming that they misled consumers about the alcohol content in their Kombucha beverages. The manufacturers, who were forced to pull their fermented teas from shelves last year due to high alcohol levels, agreed to provide cash refunds and coupons to avoid further litigation. Millennium Products and Honest Tea maintain that they did not intentionally mislead consumers. Honest Tea dropped out of the category in December 2010, while Millennium Products has thrived on the popularity of GT Kombucha and GT Synergy. According to market data, sales of Kombucha drinks grew by 28 percent in 2010 and are projected to jump 60 percent this year to reach $200 million.