The deal is the latest kombucha acquisition this year as consumer demand grows for gut-friendly, better-for-you drinks
Temple Lifestyle Brands, the Montreal-based parent company of Thirsty Buddha, an organic coconut water brand, has acquired Rise Kombucha, as the functional drinks market is projected to grow to nearly $7.9 billion by 2030.
Founded in 2008, the organic kombucha brand is already available in major retailers, but the deal, backed by Québec-based impact investors led by Fondaction, is expected to accelerate its reach and fuel further innovation.
Terms of the deal were not disclosed.
“Bringing Rise into our family is more than an acquisition; it’s a powerful step forward in our mission to revolutionize better-for-you beverages,” Temple Lifestyle Brands co-founder and CEO Christopher Magnone said. “It brings us closer to our north star: 100 million better-for-you beverages consumed annually by 2035. One beverage at a time, we’re inspiring healthier living across Canada.”
The deal follows Generous Brands’ reported $500 million acquisition of Health-Ade earlier this summer, adding one of the U.S.’s top-selling kombucha makers to its portfolio.
“This is a heartfelt milestone in Rise’s journey,” Rise Kombucha’s former chairman of the board, Charles Chang, said. “What began in Montreal with a simple idea, to craft a kombucha as bold and authentic as the people who drink it, has grown into something truly meaningful. Temple shares our passion for wellness, sustainability and community, and is uniquely positioned to unlock the brand’s next phase of growth with the scale, operational strength and expertise to make it happen.”
Mathieu Sasseville, Fondaction’s director of sustainable and impact investments, noted that the deal deepens the offering for Canadian consumers who want healthier products.
“We are thrilled to continue this journey and support Temple’s management team in their growth ambitions,” Sasseville said.
The interest in kombucha is not just a North American story. In the UK, Ocado Retail reported a 54% year-over-year surge in sales of functional drinks between March 2024 and April 2025, with kombucha sales increasing 22% during the same period. Separate nationally representative surveys conducted by Savanta in March and May 2025 echoed the trend, pointing to a growing appetite for wellness-driven alternatives to alcohol, especially among Gen Z.
The rise of kombucha and functional drinks isn’t limited to grocery aisles, as wellness and recovery studios are increasingly building them into the guest experience. At Sauna House, a tech-free contrast therapy studio expanding from Asheville to Tennessee, guests can pair the brand’s “Hot-Cold-Relax” circuit with tea, adaptogenic sparkling water or kombucha.
