The Better For You Company, the owner of functional mushroom drinks brand Boom Chaga, has acquired Kombucha Town out of bankruptcy.

Financial terms of the transaction were not disclosed.

The deal sees the US-based group acquire the kombucha producer's physical production, intellectual property and brand assets, Rich Funk, the founder and CEO of The Better For You Company told Just Drinks.

When asked why the group decided to buy Kombucha Town, Funk said the business is a “great legacy brand in the Pacific Northwest with a loyal following”, while noting The Better For You Co.'s strengths lie in the eastern US, anchored by its Boom Chaga brand.

Funk added Boom Chaga's reach through social media, Amazon, distribution and its technology can be used to help triple or even quadruple Kombucha Town's own brand reach and sales in months.

“There will be additional jobs created as part of this acquisition due to significant growth,” he said.

Founded in 2011, Kombucha Town has a strong presence in Washington state and in Oregon and has posted “steady” sales over the past three years, Funk said.

Its portfolio includes the Live Seltzer brand, a beverage that blends raw kombucha with sparkling seltzer water. The line typically features flavours such as Ginger Energy, Grapefruit Clarity, and Cucumber Focus.

The business filed for Chapter 11 bankruptcy in mid-2025.

It faced disruptions amid the Covid-19 pandemic as shifting consumer habits led distributors to drop smaller brands, creating sales pressure and straining growth investments, .

When asked how The Better For You Company plans to grow Kombucha Town, Funk said the group is looking to expand the brand's geographical presence beyond the Pacific Northwest. It also has plans around re-branding, and “more innovation”.

Boom Chaga is The Better For You Company's flagship brand. The company also owns an eastern US sales brokerage.

Looking further ahead, Funk said the company plans to keep "developing, launching, and/or acquiring natural, scientifically proven, differentiated brands that surpass consumers expectations".

Boom Chaga, already available across online platforms, is set to reach 1,500 retailers this quarter in the US. It is due to launch in Europe and India within the next 12 months.