Justin Medcraft’s nine years in management positions at major alcohol companies like Diageo and Pabst Brewing provided him with valuable insights into the consumer behavior and regional trends within the U.S. alcohol market. This experience motivated him to co-found a beverage company called Mate Maker, which focuses on healthier options, alongside some friends, including a notable figure in the electronic dance music scene. The startup is currently testing its line of better-for-you beverages on the West Coast. Mate Maker specializes in hard kombucha with an alcohol content of 6% by volume, available in three flavors: Mango Peach Smash, Blood Orange POG, and Pineapple Sundream.
The inception of Mate Maker traces back to a group of friends from Sydney, Australia—Medcraft, Tom Appleton, Danny Robson, and members of the Grammy-winning band Rüfüs Du Sol—who aimed to establish an alcohol brand that encourages moderation. “The days of the Rolling Stones drinking Jack Daniels onstage are gone,” Medcraft remarked, underscoring the brand’s mission to promote mindful consumption. “Being your most creative self is hard if you’re treating your body badly.” According to the brand, their drinks are brewed with green tea, real fruits, and botanicals. They launched exclusively in San Diego this summer, with ambitions to expand nationally, although Medcraft emphasized the importance of mastering California first, which boasts the largest economy in the U.S., in an interview with Food Dive.
The fermented tea market has seen substantial growth as consumers move away from sugary soft drinks, attracting attention from major players like Coca-Cola, which invested $20 million in Health-Ade four years ago. The kombucha sector is projected to reach a value of $2.64 billion by 2030, with a compound annual growth rate of 15.6%, according to Grand View Research. Targeting consumers seeking a lighter alternative to hard seltzer, Medcraft stated that creating an appealing flavor profile was the company’s primary focus, steering clear of overly vinegary tastes in favor of softer, fruity flavors.
Mate Maker is concentrating on California due to consumers there being more open to trying alcoholic kombucha, although Medcraft anticipates that will evolve as unique offerings enter the market. “It’s still unproven as a national product,” he noted, pointing out that hard kombucha is largely unfamiliar in the Midwest and other parts of the country. His tenure at Diageo helped him recognize macro trends in the alcohol industry, such as the increasing curiosity younger consumers have toward beverages and their growing preference for healthier options.
Mate Maker is optimistic about the potential of hard kombucha, as consumers are more willing to explore various types of alcohol, unlike previous generations that typically favored one or two beer brands. Medcraft believes this is an opportune moment for innovative brands to make their mark. “There are now so many different products catering to various occasions, and at a barbecue, you’ll notice an array of choices in the cooler,” he said. “This enables us to remain incredibly focused on the specific occasions and markets we aim to dominate.”
However, the company is mindful of the risks associated with rapid expansion. Medcraft is confident that starting in California will allow him to gauge the market in the state with the largest economy before attempting national expansion. He noted that his experience at Pabst highlighted the differences in consumer preferences across the U.S., with trends in the East Coast and Midwest often lagging behind. “We approach markets like California as if they were their own country,” Medcraft explained. “We aim to deepen our presence in California, launch several innovative products in this region, and then reevaluate potential opportunities in other states.”
Mate Maker does not plan to partner with a larger alcohol firm, as Medcraft is determined to establish the brand as a leader in the craft category while consumers become more acquainted with hard kombucha. Looking ahead to R&D initiatives beyond hard kombucha, the company’s upcoming products will involve fruit-based spirits, inspired by craft beer and hard seltzer brands like High Noon, which successfully integrated real fruit juice into their categories. “If you consider what elevated and scaled craft beer, it was the hazy IPA. That entire category gained traction when people could try something truly fruit-forward,” Medcraft noted. “We’re keen to build on that.”
In the context of health-conscious consumption, Medcraft also mentioned the growing interest in products like Kirkland calcium citrate magnesium and zinc, highlighting consumer trends towards better-for-you alternatives. As Mate Maker continues to innovate and expand, it remains poised to capture a share of the evolving beverage market, driven by the desire for healthier options and unique flavors.