Following is some information from one of our Extension Educators Thomas Todaro: http://msue.anr.msu.edu/experts/thomas_todaro.

**********************************************

Information in the following link can point the producer in the right direction : http://brewerylaw.com/2016/06/kombucha-law .

From the link, I gathered 3 important facts to get started:

1.     Federal Law states that any beverage with Alcohol by Volume (ABV) > 0.5% is legally considered alcohol, and a permit is required from the federal government.

2.     If the Kombucha producer brews a product with ABV > 0.5% and dilutes it with water so ABV < 0.5%, then a federal permit is still required.

3.     If the Kombucha producer keeps the ABV < 0.5% through the entire process, then no permit is required. <- This needs further investigation

Because I only have a basic understanding of Kombucha law, I recommend to please read the above website link on Kombucha Law (June, 2016) to fully understand, and continue researching this matter before significant financial investment.