Bicol University

College of Engineering
Department of Chemical Engineering
Legazpi City

ChE-151 Chemical Process Laboratory

Buffy Bucha
(Ampalaya Kombucha)
FINAL MANUSCRIPT

Abellano, Aubrey Lagatic, Angel Andrei Anna

Abogado, Abramcris Lomeda, John Christian

Bufi, Joshua Mina, Carl Ephraim

Cantillo, Jhon Jenry Nacis, Amira Alexis

Morcilla, Apple Andrei Rubis, John Robert

December 2022
I. Introduction/Background

Kombucha has been around for nearly 2,000 years, around 220 BC, first

discovered in Northeast China and was reportedly derived from a Korean physician, Dr.

Kombu, who brought the fermented tea to Japan as medicine for Emperor Inkyo

because of its healing properties. It then eventually spread and became popular in

Europe in the early 20th century as a result of trade route expansions, especially in

Russia and Germany.

Kombucha tea is a fermented drink made with tea, sugar, and yeast. After a week

or more of storage, bacteria and yeast form a culture. The symbiotic culture then

develops a pellicle or biofilm on the surface of the brew, which is commonly referred to

as a mushroom or SCOBY (symbiotic culture of bacteria and yeast) and may be reused

for subsequent batches. The culture is added to the sugar and tea. Then the mix is

allowed to ferment for about a week or more. The end result is a liquid that has acetic

acid (vinegar), B vitamins, and many other types of acids, including amino acids.

The science behind kombucha production is fermentation, which is the process by

which bacteria and yeasts gain energy. It is their method of partially breaking down

sugars to generate a little amount of energy, and it all takes place in the absence of

oxygen. The ethanol is subsequently used by the yeasts and bacteria in the SCOBY to

make acetic acid (vinegar), which is a byproduct of the bacterial digestive process.

The SCOBY also interacts with polyphenols, the micronutrients found in tea

leaves, during fermentation to produce new organic molecules. These substances reduce

the acidity of the liquid and inhibit the growth of undesirable bacteria in the

environment. Carbon dioxide is produced as a byproduct of the fermentation process,

 creating the same pleasant bubbles found in sodas and seltzer drinks. Lastly,

fermentation produces a new layer of SCOBY (referred to as the "daughter") that floats

on top of the original SCOBY (referred to as the "mother").

Researchers claim that kombucha tea helps prevent and treat health conditions,

from blood pressure to cancer. There is limited data on kombucha tea. A small amount

of research suggests that kombucha tea may give benefits similar to probiotic

supplements. For example, some study suggests kombucha tea may support a healthy

immune system and prevent constipation. Kombucha contains antioxidants which are

essential for the immune system and is also rich in good bacteria which aid the digestive

system. Kombucha made from green tea also contains many of the same plant’s

compounds that help improve cholesterol levels and help control blood sugar.

The kombucha will be somewhat acidic, a little sweet, and slightly fizzy at the

conclusion of this procedure, and one may add extra ingredients to spice it up, such as

ginger, lemon, fruit juice, or herbs.

II. Market Study

A. Supply and Demand

Kombucha is running through a surge of sales, rapidly emerging into the

domestic beverage market, and has become an influential player in the economy.

It gained popularity in domestic markets in the 1990s and is believed to be a

powerful health aid for serious medical conditions.

The global kombucha market was valued at USD 1.84 billion in 2019 and

USD 2.64 billion in 2021 and is expected to expand at a compound annual growth
rate (CAGR) of 15.6% from 2022 to 2030 and is projected to reach USD 10.45

billion by 2027.

Figure 1. Kombucha Projected Market Size in North America (2016-2027)

Sales of kombucha in the United States and even in other countries have

been continuously rising for its positive health effects. The outbreak of the

COVID-19 pandemic ceased the operations in various factories and warehouses

across countries. However medicinal shops and convenience stores remained open

and operational, providing consumers essential health supplies and medicines.

According to a study conducted by the National Center for Biotechnology

Information (NCBI) in 2020, kombucha consumption helps support the immune

system for its antioxidant, anti-inflammatory, and cholesterol-lowering properties.

Many probiotic drink manufacturers have been increasing their production

capacities as demands for immunity-boosting beverages continue to increase

amidst the pandemic. At that same time, Malaysian-based brand WonderBrew

planned to double the sales by expanding it more through e-commerce.

 In addition, consumer preferences have been shifted towards fermented tea

and other low and non-alcoholic drinks as consumption of high alcohol content

beverages leads to 5.3% of all deaths around the world. Consumers, specifically

millennials and Gen Z, have significantly shifted toward proactively tackling their

health & well-being, and have dedicated themselves to improving their overall

longevity, which has led to higher product acceptance. According to a research by

BioMed Central in 2020, a reduction in alcohol production and an increase in the

availability of non-alcoholic drinks gears consumer preferences towards

kombucha. A variant of flavors of fermented tea is expected to boost the market

growth and sales of kombucha in the global marketplace. Since kombucha

contains probiotics, it also favors manufacturers to increase its production rate.

According to the International Probiotics Association, the probiotic supplements’

market value stood at USD 4 Billion in 2015 and is expected to grow decently

which will favor the market value of kombucha.

Currently, North America is leading the kombucha market share since 2019

and is expected to retain its position in the market because of its increasing

popularity of kombucha among consumers as functional beverages are becoming

highly influential. Europe is projected to hold the second largest share in the

market. Russia and U.K. are among the major consumers of the drink dubbing it

as “an adult soft drink”. Substantial market growth of kombucha in Asia Pacific is

also observed as it was once traditionally consumed in China, where it is known

as the “elixir of life”. It is expected to increase as the consumers’ increasing

awareness about health and wellness emerge and likely to fuel the regional market
 growth. In the Middle East and Africa, kombucha market growth is also supported

as the consumers prefer kombucha’s non-alcoholic and probiotic properties as

well as its high affordability.

Kombucha is marketed as a product that eliminates toxins, boosts energy &

immune system, and helps lose weight, which is driving the frequency of its

consumption among consumers globally. Chronic diseases such as high blood

pressure, renal disease, liver disease, diabetes, and others are on the rise, fueling

the worldwide kombucha industry. Increased awareness of the health benefits

associated with probiotic consumption is another important driver expected to fuel

the global kombucha market over the projected period.

B. Target Consumers

The global Kombucha market is divided into male and female segments

based on consumer demographics. In 2021, the female segment held the larger

market share because as women's health consciousness grows, so does their

purchasing power throughout the world. Women’s increased attention to fitness,

good eating habits, and weight loss have considerably affected the expansion of

the kombucha business. The consumers' belief in kombucha's probiotic qualities

appears to be its key selling factor. Another Mintel survey (2019a) found that 66%

of kombucha drinkers do so for the probiotic content, which is more significant to

them than the flavor (57%) and overall health benefit (39%).

When it comes to gender, kombucha is more appealing to women, who are

the target market for "gut health claims," and they also prefer the flavor more than

males (Mintel, 2019b). In general, the consumers, specifically the millennials and
 Gen Z have started to embrace healthier lifestyles, leading their choice of drinks

towards healthier alternatives to alcoholic drinks. However, as the kombucha

industry starts to progress with a variety of flavors to choose from, its target

market starts to expand even more to consumers who generally just want to enjoy

a healthy yet refreshing drink, which is also the target consumers of the product,

Buffy Bucha (Ampalaya Kombucha).

C. Market Players

The market is characterized by the presence of a few well-established

players and several small and medium players. The majority of the market share is

captured by key players, who are adopting various strategies, including new

product launches, expansion of product portfolios, and mergers & acquisitions.

Some of the key players operating in the global kombucha market include

GT’s Living Food, København Kombucha, Remedy Drinks, GO Kombucha,

Læsk, Lo Bros., VIGO KOMBUCHA, Brothers and Sisters, BB Kombucha,

MOMO KOMBUCHA, Real Kombucha, and Equinox Kombucha.

These companies are all based in the U.S., Canada, Mexico, Germany, U.K.,

France, Netherlands, Switzerland, China, India, Japan, Australia, Brazil,

Argentina, UAE, and South Africa.

D. SWOT Analysis

The table that follows shows the summary of the strengths, weaknesses,

opportunities, and threats of the kombucha drink developed by the proponents.

The drink is made by fermenting a mixture of ampalaya tea and coconut sap sugar
using a SCOBY, and then flavorings are added, which are apples and butterfly

pea flowers in this case.

STRENGTHS WEAKNESSES OPPORTUNITIES THREATS

 Kombucha uses  The production  Kombucha is a  The product
Momordica charantia process is versatile product created has only
(Ampalaya) tea as a environmentally capable of catering one flavoring,
base which is new to sensitive e.g., light, to different which may not
the market. and temperature. flavoring cater to all target
 Environmentally  Kombucha requires combinations. markets creating
concerned customers good advertising competitors an
would love our new for the product as it opportunity for
product for it uses a is still unknown in such deficiency.
natural coloring of the target market.
Clitoria ternatea  In order for
(Butterfly Pea kombucha to be
Flower) instead of classified as
synthetic food dyes carbonated drinks,
which use petroleum. 5% alcohol content
 Coconut sap sugar is maintenance is
cheaper than refined required which
sugar due to the adds cost to the
recent sugar crisis. production process.

Table 1. SWOT of Buffy Bucha

Analyzing the information from the table above, it can be inferred that there

is still so much to improve on the produced kombucha drink by the proponents, as

it should be since this venture has only started. The main challenge of the

proponents is how they will combat other competitors’ kombucha variations as it

is a versatile product capable of catering to different flavor combinations. How the

proponents will take advantage of the kombucha’s ‘flexibility’ will either make

this a threat or an opportunity for them.

The proponents’ main advantage in this area is that their production costs

have been significantly cut by using alternative ingredients that are cheaper but
 offer the same quality and unique flavoring. White sugar is originally used in

kombucha production, but the proponents opted for coconut sap sugar for its

affordable price. Ampalaya tea is also used instead of black or green tea to have

better distinction over other kombucha products. It can also be assured that the

ingredients used are organic and all-natural.

Despite all these strengths, the proponents still have to acknowledge and

address certain weaknesses for this venture to move forward. Since kombucha can

be new to the ears of some of the masses, this can pose a problem for the

proponents’ ability to sell the created products. Also, it is also critical that the

proponents maintain an environment suitable for producing high-quality

kombucha.

III. Product Description

A. Properties

Kombucha is a fermented tea that has been enjoyed for thousands of years.

It not only has the same health advantages as tea, but it is also high in probiotics.

Kombucha also includes antioxidants, may fight harmful bacteria and may aid in

the treatment of a variety of diseases. Kombucha is a potential source of

probiotics. Probiotics fuel your gut with beneficial microorganisms. These

bacteria can help with a variety of health issues, including digestion,

inflammation, and even dietary changes. Although kombucha naturally produces

certain amounts of alcohol during the fermentation process, it is considered as

non-alcoholic containing around 0.5% ABV (Alcohol by Volume) which meets

 the regulations set by US Alcohol and Tobacco Tax Trade Bureau and other food

inspection agencies wherein a drink is considered non-alcoholic if it has less than

1.1% ABV

Kombucha may provide the benefits of tea and contains antioxidants.

Antioxidants are substances that combat free radicals, which are reactive

molecules that can cause cell damage. Many experts believe that antioxidants

found in meals and drinks are superior to antioxidant pills. Moreover, kombucha

appears to have antioxidant properties in the liver, especially when brewed with

green tea. Drinking kombucha on a daily basis decreases liver damage caused by

toxic substances, in some cases by at least 70%, according to rat studies (G.S.

Murugesan, et. al, 2009). While there have been no human studies on this issue, it

appears to be a potential area of research for persons with liver illness.

Many individuals believe that kombucha can assist alleviate a variety of

chronic health conditions. However, there has been few human research on the

effects of kombucha, and the evidence for its health benefits is limited. On the

other hand, there is ample evidence that tea and probiotics, both of which are

contained in kombucha, are beneficial for health and wellness.

B. Components

Kombucha production consists of these basic ingredients: tea, coconut sap

sugar, SCOBY (bacteria and yeast), and any type of chosen fruits/herbs for

additional flavor. Generally, the main process of kombucha brewing is for the

bacteria and yeast to first form a culture. Then, the culture is mixed into sugar and

tea and until then, the mixture is allowed to ferment.

 The tea consists of a tea bag of Wild Pure Ampalaya dried leaves soaked in

distilled water. The sugar that will be used as an energy source for yeast will be

coconut sap sugar. SCOBY is also added to the Kombucha base. The SCOBY will

aid in the fermentation process by converting the sugar to alcohol, carbon dioxide,

and acetic acid. Butterfly pea flowers and Apples will be added as flavoring and

sweetener to the Kombucha.

The ratio of water: coconut sap sugar is 15:1 cup added with 8 Wild Pure

ampalaya tea bags or equivalent to 16 grams and 1 pc Organic Kombucha

SCOBY. Around 3-4 cups of apple juice extract will be added for additional

flavor and 1 butterfly pea flower for coloring.

C. Innovation

For Buffy Bucha (Ampalaya Kombucha), the usual and common kombucha

brewing process will be followed; however, the proposed kombucha consists of

unique flavors from ampalaya tea, coconut sap sugar, butterfly pea flower, and

apples.

The ampalaya leaves will be the source of tea for the product. Ampalaya or

Bitter Gourd is known for its medicinal properties which specifically help in

reducing blood sugar levels and promoting digestion. Ampalaya in tea is found to

be safe for most individuals compared to the usual black tea used for Kombucha.

Black tea contains certain doses of caffeine which is not advisable to be consumed

by very young children or very old people.

Coconut sap sugar will serve as an alternative to brown sugar. Sugar made

from coconut sap is very lightly processed compared to brown sugar which is
 highly processed, thus coconut sap sugar retains more of its nutrients and contains

a high number of vitamins and minerals such as iron, zinc, and magnesium along

with other polyphenols.

The butterfly pea flower will give the drink a unique color from deep

lavender-blue to violet. Moreover, it is also rich in antioxidants and may help

improve hair and skin health. Another substance added to the drink is apple slices.

Apple slices will give the product an appley hint of flavor. Apples will also give

extra freshness to the drink and contains high amounts of Vitamin C, which helps

boost antioxidant levels and repairs body tissues.

Furthermore, the aforementioned ingredients are budget-friendly,

considerably accessible in Legazpi, Albay, and well-known within the locality.

D. Environmental Considerations

The kombucha drink produced by the proponents does not have a harmful

impact on the environment as the ingredients used to create this product are all

natural and organic.

The waste generated by kombucha production is relatively low, considering

that the wastes primarily consist of the plastic wrappers that the ingredients were

put in during the procurement. This is segregated and disposed of properly. The

remaining fraction of the waste is the cellulose-based biofilm which is a by-

product of kombucha drink production. However, this cellulose mat can be

utilized further to minimize waste production by making it into a dish since it is

also edible.
IV. Final Product Prototype

A. Packaging

Possible packaging materials were researched by the company to be used for

the product. Firstly, it was considered was that kombucha is slightly alcoholic and

a fizzy drink, therefore preserving the carbonation in the drink is important. Next,

the drink must not be exposed to sunlight as it negatively affect the kombucha’s

beneficial bacteria and cause oxidation. From the identified factors, two possible

packaging materials were identified to be suitable for the things needed to be

considered; tainted glass bottle and aluminum cans.

Figure 2. Packaging Concept (Cans)

Figure 3. Packaging Concept (Glass Bottles)

 Glass Bottles were commonly containers used by the kombucha industry

and aluminum cans were becoming a popular way to package the drink. Glass

bottles can contain carbonation better and can be reused and resealed if glass

bottles still fit the standard for reusing. Also, gas bottles do not interfere with the

flavor as the material is inert and contains the liquid significantly well. Aluminum

cans, on the other hand, are cheaper and lighter to be shipped to different places. It

is also non-transparent; therefore sunlight exposure is limited and also chills faster

than glass bottles. It is also preferable for shipping as kombucha is raw and not

distilled like any other alcoholic beverages. Keeping the drink in a chilled state

would prevent continuous fermentation and limit rupturing of the packaging

material.

Kombucha is a slightly acidic beverage; therefore any metal the kombucha

makes in contact with might compromise the flavor of the beverage. In terms of

aluminum cans, a can with BPA polymer or epoxy resin liner should be used for

this type of beverage. On the other hand, in terms of glass bottles, thick, pressure

tested and tinted glass bottles can be used for the said beverage. Comparing the

two, it was determined that the production costs of kombucha using aluminum

cans with BPA or epoxy resin liner is significantly higher in comparison to using

tinted and pressure tested bottles. With this, the proponents preferred using the

tinted glass bottles as a container for the beverage for the initial product prototype.

Other specific factors for the details of the glass bottles were considered.

First, two options for the colors of the bottles were discussed: the classic amber

glass bottles and the flavor- specific tinted glass bottles. In terms of protection to
 sunlight exposure, the amber glass bottle is the most commonly used type of

tinted glass bottles for protecting sunlight sensitive products. In terms of

advertisement and marketing, flavor-specific glass bottles may attract more

consumers to try the product. Though there are little to no studies if tinted glass

bottles other than amber and others can protect the product to sunlight exposure,

the proponents chose the flavor-specific tinted glass bottles to distinctly

differentiate each flavor added in the kombucha. Next, two options for the bottle

caps were considered: the common plastic cap or the easy-open bottle cap. In

terms of practicability, an easy-open cap was preferable for its purpose of not

using a tool to open the bottle, making the product an on-the-go beverage. With

that, the proponents chose the easy-open bottle cap for the product prototype.

B. Labeling

As the logo is a key aspect of any product to have a distinction from other

products, it is also equally important to add the ingredients, manufacturing date,

manufacturing location, best-before date, specific allergens that are contained in

the product, and specific alcohol content of the product. This is to inform the

consumers of the contents of what they are drinking and to avoid any unwanted

situations from occurring against both the consumers and manufacturers.

The logo is designed in a way that is eye-catching and will surely leave an

impression on the consumers. It is aligned to today’s aesthetic while incorporating

vintage elements to better appeal to consumers of all legal ages. We chose a

smiling person as the mascot of our product to have an emotional rapport with the

consumers and make them associate this product with a positive feeling.
 Figure 4. Initial Logo

Figure 5. Initial Product Lab+el

Figure 6. Final Logo

Figure 7. Final Product Product Label

 C. Final Product Packaging Design

For the initial product packaging design, below is our vision of what the

company would like the product to look like.

Figure 8. Initial Product Mock-up

Figure 9. Initial Product Mock-up

\
V. Engineering Process

In order to describe the general process flow in making Buffy Bucha (Ampalaya

Kombucha), the following PFD is provided.

Figure 7. Process Flow Diagram

 Presented in the diagram are the raw materials to be utilized, the process flow

direction, the bypass/recirculation system, and the connection with other systems.

To make the kombucha base, ampalaya tea and coconut sap sugar are added to

boiling distilled water and steeped for about 10 minutes before removing the teabags.

The solution is then cooled to room temperature, at which point a thin layer of mother

SCOBY and a small amount of fermented kombucha are added to begin the

fermentation. Ingredient proportions vary between brewers and kombucha beverages

but generally consist of 5%–15% sugar and 2% SCOBY. The sweet tea mixture is

transferred into a sterile wide-mouthed jar and covered with a secured cloth to prevent

insect contamination. The kombucha is then stored between 20°C and 30°C (20°–22°C

is preferred) for 6 to 14 days to ferment. Once the fermentation is complete, the SCOBY

is removed and the kombucha is filtered through cheesecloth, bottled, and refrigerated at

4°C. Lastly, add apples and butterfly pea flowers to the mix to produce a uniquely

flavored kombucha drink.

VI. Initial Marketing Strategy

A. Product Price

Looking at the ingredients in making Kombucha, one might say that a

finished product costs very little. The ingredients which generally include sugar,

water, kombucha SCOBY culture, loose leaf tea or tea bags, are not only

inexpensive, but are also easy to find. However, this is not the case as the demand

for Kombucha in the market is relatively high, which makes raising the finished

product’s costs to be reasonable. Aside from this, the optional flavoring, labor,

and time required in producing Kombucha adds to its price. There are also other
 factors to be considered if the production of Kombucha is large-scale, which are

space, additional molecular processes, and better packaging, to name a few.

With the abovementioned factors taken into account, as well as the prices of

Flavored Kombucha in the Philippine market to be around Php 225.00 per 350 mL

and Php 475.00 per 750 mL as the company’s pricing basis, the company has

decided on a price of Php 210.00 per 250 mL and Php 460.00 per 750 mL. The

company will first test the waters in the market with the decided prices and then

adjust the prices accordingly as the business moves forward.

B. Promotion

Developing an effective product promotion strategy is a crucial procedure in

marketing. The goal of promotion is to reach out to the desired consumers and

persuade them to take action. A company may have a well-designed product

offering with an appropriate price and distribution system for its target market.

However, if it is unable to reach that market, all of its efforts will be for naught.

Promotion is in charge of stirring up and boosting consumer demand for a

product.

In order to promote the product, the company will use the following as

promotional strategies:

a. Social Media Marketing

With more than 80% of consumers disclosing that social media,

particularly influencer content, has a significant impact on purchasing

decisions, marketers across industries are driving the evolution of social

media marketing (SMM) from a stand-alone tool to a multipronged source

 of marketing intelligence on an increasingly growing market. The company

will use this advantage to widen the reached audience. In order to do so, the

company will start by establishing an official Facebook Page, an Instagram

account, as well as a TikTok account to create and post content promoting

the product that pushes engagement to obtain geographic, demographic, and

personal data that allows messaging to interact with users.

b. Advertisement

Advertising is essential in the introduction of a new product to the

market as it encourages people to buy the product. Advertisement drives up

demand. It articulates the brand message to a large audience, creating a

desire to purchase the company's products. This, in turn, increases the

market demand for the brand. It also aids in brand building. Ads are

effective in marketers' attempts to align the brand image with their brand

identity, resulting in a market-friendly brand. By issuing publication

materials such as brochures, posters, and infographics in digital and print,

the company cannot only reach and expand its target market but also

educate them regarding the product and its purpose.

c. Personal Selling

Personal selling is a face-to-face technique in which a salesperson

personally approaches a potential buyer or leads to sell a product or service.

Considering the nature of the product, since beverages are consumer goods,

personal selling is an effective promotional tool for it. As a starting

company, this is a great opportunity to inform and persuade consumers to

 buy the product as well as to promote it over other brands in the market.

This will also provide the company with knowledge of the client’s

preferences and feedback.

C. Distribution

The significance of distribution in a company's sales cannot be overstated.

Distribution refers to making a product available for purchase through market

dissemination. The transportation, packaging, and delivery of the product or

service are all involved in this process.

The company will utilize direct distribution which refers to the strategy

wherein the manufacturer directly sells the product to the consumers. The initial

plan of the company is to use returnable glass bottles in storing the kombucha. In

order to ensure the product’s safety and quality during transportation/delivery, the

bottles will be individually wrapped in newspaper and tape before shipping out for

distribution. For the time being, the company will only accept orders in the Albay

area.

VII. Timeline

The production and presentation of Buffy Bucha (Ampalaya Kombucha) is

divided into five (5) phases; Planning and Conceptualization, Proposal and Presentation,

Procurement of Materials, Experimentation/ Production, and Final Presentation,

wherein the current document falls under the second phase. In order to guide the general

process and schedule, presented below is the timeline to be followed consisting of the
phases, general and specific tasks to be completed under each phase as well as the target

dates for the tasks to be accomplished.

Buffy Bucha
(Ampalaya
Kombucha)

Figure 8. Timeline of Activities

VIII. References

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