Botanic Tonics, makers of Feel Free herbal supplement shot, has secured a $25 million investment to support its testing efforts and to secure its kava supply chain.
The company would not disclose the full list of investors but stated that the raise was derived internally from existing Botanic Tonics’ cap table members.
Launched by fintech and energy industry entrepreneur JW Ross in 2021, Botanic Tonics uses kava root and whole-leaf kratom to make mood-enhancing shots positioned primarily in the convenience channel.
The company seized on consumer demand for relaxation products during the early days of the pandemic and has continued to see sales grow, despite some early hiccups navigating the uncertain regulatory landscape of kratom.
Kratom Confidence Building
In April 2023, a class-action lawsuit was filed alleging that Botanic Tonics and 7-Eleven had misled consumers about the addiction risk of kratom. The suit was settled in September, but the company has invested resources into voluntary testing protocols and consumer education since then, including, raising the age restriction of its products to 21 years or older last year.
CEO Cameron Korehbandi said that much of the brand’s focus on safety protocols has been “internally driven” to “build confidence” in the brand.
“There’s a good reason you haven’t seen any news on the Botanic Tonics from the FDA recently,” Korehbandi said.
Botanic Tonics has taken it upon itself to invest in peer-reviewed scientific research to better educate lawmakers and prospective consumers about the functional benefits of kava and kratom.
According to Korehbandi, one of the biggest problems has been the lack of scientific research on kratom available to regulatory agencies like the FDA.
“They didn’t have enough science to say whether or not kratom had a safety profile that they were comfortable with,” he said. “Clinical trials don’t come cheap.”
Part of that education process has included giving consumers more information about the difference between whole-leaf kratom (which Botanic Tonics uses) and extracts as well as dosage recommendations for Feel Free. The brand is in the process of a minor packaging change that will better illustrate that each 2-ounce bottle includes two servings.
A ‘Kava-Forward’ Company
Despite the difficulties presented by using kratom in some of its formulations, Botanic Tonics considers itself to be a “kava-forward” company, Korehbandi said. This is why the company raised the eight-figure round to help secure the supply chain of its hero ingredient. Kava is almost exclusively sourced from the South Pacific countries, Fiji and Vanuatu.
Currently, Botanic Tonics sources its kava root from independent farmers in Vanuatu. In part, the recent investment will go towards buying plots of land on the island nation and cultivating kava which takes about four years to mature.
Farming kava will only add to Botanic Tonics’ vertically integrated model, which includes a manufacturing and fulfillment facility in Broken Arrow, Okla. The plant has expanded from 30,000 sq. ft. to 122,000 sq. ft. in the last three years.
The brand exclusively produces its kava extracts to meet its own product demand, but is “constantly evaluating options to commercialize extraction operations to serve other brands,” a company representative reported.
Diversifying as an ingredient supplier could be a smart move as demand grows for kava products.
“Kava is having its moment where it’s coming into the spotlight,” Korehbandi said.
The kava root extract market is expected to grow from $1.3 billion in 2024 to $1.5 billion in 2025 at a compound annual growth rate (CAGR) of 16.4%, according to The Business Research Company.
The traditional beverage has made its way from its roots as a ceremonial drink to tiki-themed kava bars in Florida into a ready-to-drink category that has latched onto the adult non-alcoholic movement.
Although, kratom has found its way into some beverage formulations, about half of its consumers use capsules and powder as the preferred method of consumption, according to Brightfield Group data tracking. Over 30% of those consumers are buying kratom in local vape or smoke shops.
Although Botanic Tonics does offer Feel Free in capsules, the brand wouldn’t comment directly if it was moving into a full-sized beverage format.
“We are looking at ways for consumers to get the product in ways that relate to their lifestyle,” Korehbandi said.
Whether it’s for mood enhancement or relaxation, “it’s a way to provide a functional benefit to people that helps them get through whatever moment they may need,” he said.