Cove Kombucha

About Cove Kombucha

Cove Drinks, operating as Cove Kombucha, is a Canadian beverage company positioned in the rapidly expanding functional beverage market.

The company's journey began in 2016 in the kitchen of the founders' mother in Malignant Cove, Nova Scotia. Brothers John and Ryan MacLellan started the venture after Ryan, then a teaching student, began experimenting with brewing kombucha. John, who was working at Ernst & Young with an inclination for entrepreneurship, saw the business potential in his brother's home-brewed product. They began selling at a local Halifax farmers' market, and after a positive reception, the business quickly grew. Ryan left his university program to focus on the company full-time, and John later left his corporate job to join him as co-founder.

Cove Drinks operates on a direct-to-retail business model, supplying its products to a wide network of stores. The company generates revenue through the sale of its kombucha and functional sodas to major Canadian retailers, including Sobeys, Loblaws, Costco, and Whole Foods Market. Their distribution network has grown to over 2,250 locations across Canada, and they have recently expanded into the U.S. market through retailers like Costco and The Fresh Market. The company has successfully raised capital to fuel its expansion, including a $1.2M seed round in 2019 and a subsequent $4.5M equity and debt financing round in 2021. More recently, the company received a $2.5M investment from Palm Tree Crew in 2024 to support its U.S. retail expansion.

The company's product portfolio includes two main lines: Cove Kombucha and Cove Soda. The kombucha is an authentically brewed, fermented tea beverage available in flavors like Blueberry Pomegranate and Orange Ginger. In 2022, the company launched Cove Soda, a zero-sugar functional soda containing probiotics and made with organic ingredients. This line offers classic soda flavors such as Classic Cola, Root Beer, and Lemon Lime, targeting health-conscious consumers looking for alternatives to traditional sugary drinks. Both product lines are designed to appeal to the growing consumer trend towards gut health and low-sugar options.