Health-Ade ferments a new future under Generous Brands, joining a nearly $1B portfolio and strengthening the company’s push into functional, better-for-you beverages
Generous Brands, the parent company of Bolthouse Farms and Evolution Fresh, has signed a deal to acquire kombucha maker Health-Ade, expanding its presence in the functional beverage market.
The deal adds Health-Ade to Generous Brands’ growing portfolio, which spans juice, smoothie, protein, coffee and kombucha categories. Health-Ade’s private equity backers, First Bev and Manna Tree, will retain minority stakes in Generous Brands.
Terms of the transaction were not disclosed, though the deal is reportedly valued at $500 million, according to the Wall Street Journal. It is expected to close in the third quarter.
Generous Brands CEO Steve Cornell said the acquisition reflects a broader shift in consumer behavior, as shoppers increasingly seek beverages that deliver more than just flavor.
“Consumers have entirely redefined the role of beverages and it’s reshaping the future,” Cornell said. “With its purpose-led brand and products that are positioned at the intersection of delicious taste and modern health trends, Health-Ade fits perfectly into our platform and growth strategy.”
Health-Ade has grown from a farmers market staple into one of the top-selling functional beverage brands in the U.S., with nearly $250 million in annual retail sales and distribution in 65,000 stores. Its addition gives Generous Brands a stronger foothold in the kombucha category, as the company looks to expand distribution and drive growth across retail channels.
Health-Ade CEO Chris Lansing called the deal a pivotal step for the brand and a signal of broader momentum in better-for-you, gut-health-focused beverages.
“We are excited and confident that Generous Brands is the right platform to unlock Health-Ade’s full potential and introduce even more people to the power of gut-healthy beverages,” Lansing said. “We are grateful to our founders who helped pioneer this category, and to First Bev and Manna Tree for their support and partnership to help us grow to where we are today.”
The deal comes amid a sharp rise in demand for functional beverages, particularly among Gen Z consumers who are redefining social rituals with gut-supporting sips like kombucha, matcha and mushroom coffee. According to recent Ocado Retail data, sales of functional drinks have surged 54%, with fermented beverages like kombucha increasing by 22% year-over-year, demonstrating a shift away from alcohol and toward wellness-fueled alternatives.
