Amidst booming demand for functional beverages over the last decade niche ingredients have found a springboard to mainstream awareness and acceptance. No one was beating a path to lion’s mane mushrooms and ashwagandha 15 years ago, but they are now. Yet surging interest in drinks-with-benefits has allowed one dangerous substance – kratom – to sneak in, some are arguing, with lawsuits and regulations threatening to sink the budding RTD category just as it begins to find market traction. As a plant-derived source, kratom aligns with natural health and wellness trends, delivering a boost of euphoric energy or sedative relaxation depending on dosage. That positioning has attracted ready-to-drink brands like Mitra-9, New Brew, White Rabbit, Botanical Brewing Company, Dialed Moods and Botanic Tonics, the latter of which pulled in $25 million in fresh venture capital in January. But concerns over kratom’s health effects have cast a shadow over the category’s growth. - Products from Botanic Tonics were seized in a raid in 2023.
- This week the FDA sent warning letters to brands it says are producing illegal synthetic kratom products.
- Twenty-four states and the District of Columbia have regulated sales of kratom thus far, with Mississippi restricting all sales to 21+ as of July 1, while a similar proposal is awaiting Gov. Kathy Hochul’s signature in New York.
Now one of its emerging names may be heading to court, as Mitra-9 Brands was hit with a proposed class action lawsuit this week over allegations that its products are addictive, leading to habitual use and withdrawal symptoms. The complaint alleges that Mitra-9 relied on “innocuous packaging and the public’s limited knowledge about kratom and its pharmacology to get users addicted,” leading to withdrawal symptoms like “cold sweats, extreme irritability, restless leg syndrome, and insomnia.” But concerns about kratom haven’t stopped the brand’s progress yet: it’s in around 34 distributors in 32 states, where its high margins relative to energy competitors has attracted beer-affiliated DSD houses and put the product into between 4,000 to 5,000 points of distribution, according to the company. Read the full story on BevNET for more on the lawsuit and pending backlash. |