Whole Foods Settles Kombucha Lawsuit

Whole Foods Market Inc. and Health-Ade LLC have agreed to pay $4 million to settle allegations that Health-Ade labels its kombucha as non-alcoholic despite containing “more alcohol than permitted for non-alcoholic beverages.” Bayol v. Health-Ade LLC, No. 18-1462 (N.D. Cal., filed March 15, 2019). Under the agreement, class members can receive $4 for each bottle of kombucha purchased, with a limit of 20 claims with proof of purchase and 10 without. Health-Ade also agreed to change its formula to better control the variability of alcohol and sugar content and update its labels to notify purchasers that “[d]ue to natural fermentation, there may be trace amounts of alcohol and small pieces of culture.”