diff --git a/api/src/cartsnitch_api/cache.py b/api/src/cartsnitch_api/cache.py
index 319cb8d..133207b 100644
--- a/api/src/cartsnitch_api/cache.py
+++ b/api/src/cartsnitch_api/cache.py
@@ -1,9 +1,41 @@
 """Redis/DragonflyDB caching helpers."""
 
+import logging
+from typing import TYPE_CHECKING
+
 import redis.asyncio as redis
+from redis.asyncio import Redis
 
 from cartsnitch_api.config import settings
 
+if TYPE_CHECKING:
+    from cartsnitch_api.config import Settings
+
+logger = logging.getLogger(__name__)
+
+_redis: "Redis | None" = None
+
+
+def get_settings() -> "Settings":
+    return settings
+
+
+async def init_redis() -> None:
+    global _redis
+    _redis = redis.from_url(settings.redis_url)
+    await _redis.ping()
+
+
+async def close_redis() -> None:
+    global _redis
+    if _redis is not None:
+        await _redis.aclose()
+        _redis = None
+
+
+def get_redis() -> Redis | None:
+    return _redis
+
 
 class CacheClient:
     """Redis/DragonflyDB caching with connection pooling.
diff --git a/api/src/cartsnitch_api/database.py b/api/src/cartsnitch_api/database.py
index 3c6043c..ffb74ec 100644
--- a/api/src/cartsnitch_api/database.py
+++ b/api/src/cartsnitch_api/database.py
@@ -1,28 +1,60 @@
 """Database session management for the API gateway."""
 
 from collections.abc import AsyncGenerator
+from typing import TYPE_CHECKING
 
 from sqlalchemy.ext.asyncio import AsyncSession, async_sessionmaker, create_async_engine
 
 from cartsnitch_api.config import settings
 
-engine = create_async_engine(
-    settings.database_url,
-    echo=False,
-    pool_size=10,
-    max_overflow=20,
-    pool_pre_ping=True,
-    pool_recycle=3600,
-)
-async_session_factory = async_sessionmaker(engine, class_=AsyncSession, expire_on_commit=False)
+if TYPE_CHECKING:
+    from sqlalchemy.engine import Engine
+
+
+_engine: "Engine | None" = None
+async_session_factory: async_sessionmaker[AsyncSession] | None = None
+
+
+def create_db_engine():
+    return create_async_engine(
+        settings.database_url,
+        pool_size=10,
+        max_overflow=20,
+        pool_pre_ping=True,
+        pool_recycle=3600,
+        echo=False,
+    )
+
+
+async def init_db() -> None:
+    global _engine, async_session_factory
+    _engine = create_db_engine()
+    async_session_factory = async_sessionmaker(_engine, class_=AsyncSession, expire_on_commit=False)
+
+
+async def close_db() -> None:
+    global _engine, async_session_factory
+    if _engine is not None:
+        await _engine.dispose()
+        _engine = None
+    async_session_factory = None
+
+
+def get_engine():
+    return _engine
 
 
 async def get_db() -> AsyncGenerator[AsyncSession, None]:
-    """FastAPI dependency that yields an async DB session."""
+    if async_session_factory is None:
+        raise RuntimeError("Database not initialized. Call init_db() first.")
     async with async_session_factory() as session:
         yield session
 
 
-async def dispose_engine() -> None:
-    """Dispose the database engine, closing all pooled connections."""
-    await engine.dispose()
+# Backward compatibility: module-level engine proxy that delegates to _engine
+def __getattr__(name: str):
+    if name == "engine":
+        if _engine is None:
+            raise RuntimeError("Database not initialized. Call init_db() first.")
+        return _engine
+    raise AttributeError(f"module {__name__!r} has no attribute {name!r}")
diff --git a/api/src/cartsnitch_api/main.py b/api/src/cartsnitch_api/main.py
index 9993b29..bfd2755 100644
--- a/api/src/cartsnitch_api/main.py
+++ b/api/src/cartsnitch_api/main.py
@@ -26,10 +26,14 @@ from cartsnitch_api.routes.user import router as user_router
 
 @asynccontextmanager
 async def lifespan(app: FastAPI):
-    await cache_client.initialize()
+    from cartsnitch_api.database import init_db, close_db
+    from cartsnitch_api.cache import init_redis, close_redis
+
+    await init_db()
+    await init_redis()
     yield
-    await cache_client.close()
-    await dispose_engine()
+    await close_redis()
+    await close_db()
 
 
 def create_app() -> FastAPI:
diff --git a/api/src/cartsnitch_api/routes/health.py b/api/src/cartsnitch_api/routes/health.py
index 0574b10..787f0d6 100644
--- a/api/src/cartsnitch_api/routes/health.py
+++ b/api/src/cartsnitch_api/routes/health.py
@@ -1,8 +1,11 @@
 """Health check and error metrics endpoints."""
 
 from fastapi import APIRouter, Depends
+from sqlalchemy import text
 
 from cartsnitch_api.auth.dependencies import verify_service_key
+from cartsnitch_api.cache import get_redis
+from cartsnitch_api.database import get_engine
 from cartsnitch_api.middleware.error_handler import get_error_monitor
 
 router = APIRouter(tags=["health"])
@@ -10,7 +13,27 @@ router = APIRouter(tags=["health"])
 
 @router.get("/health")
 async def health():
-    return {"status": "ok"}
+    engine = get_engine()
+    db_ok = False
+    redis_ok = False
+
+    try:
+        async with engine.connect() as conn:
+            await conn.execute(text("SELECT 1"))
+        db_ok = True
+    except Exception:
+        pass
+
+    try:
+        r = get_redis()
+        if r:
+            await r.ping()
+            redis_ok = True
+    except Exception:
+        pass
+
+    status = "ok" if db_ok else "degraded"
+    return {"status": status, "db": db_ok, "redis": redis_ok}
 
 
 @router.get("/internal/error-stats", dependencies=[Depends(verify_service_key)])
diff --git a/api/tests/test_cache.py b/api/tests/test_cache.py
new file mode 100644
index 0000000..6eea8b7
--- /dev/null
+++ b/api/tests/test_cache.py
@@ -0,0 +1,50 @@
+"""Tests for Redis/DragonflyDB caching lifecycle."""
+
+import pytest
+
+from cartsnitch_api.cache import CacheClient, close_redis, get_redis, init_redis
+
+
+@pytest.mark.asyncio
+async def test_init_redis_creates_client():
+    """Test that init_redis creates the Redis client."""
+    await init_redis()
+    try:
+        r = get_redis()
+        assert r is not None
+        await r.ping()
+    finally:
+        await close_redis()
+
+
+@pytest.mark.asyncio
+async def test_close_redis_clears_client():
+    """Test that close_redis properly closes and clears the client."""
+    await init_redis()
+    await close_redis()
+    assert get_redis() is None
+
+
+@pytest.mark.asyncio
+async def test_cache_client_get_returns_none_when_not_connected():
+    """Test that CacheClient.get returns None gracefully when Redis is down."""
+    client = CacheClient()
+    # Without init_redis, get should return None
+    result = await client.get("test-key")
+    assert result is None
+
+
+@pytest.mark.asyncio
+async def test_cache_client_set_does_not_raise_when_not_connected():
+    """Test that CacheClient.set does not raise when Redis is down."""
+    client = CacheClient()
+    # Without init_redis, set should not raise
+    await client.set("test-key", "test-value", ttl_seconds=60)
+
+
+@pytest.mark.asyncio
+async def test_cache_client_delete_does_not_raise_when_not_connected():
+    """Test that CacheClient.delete does not raise when Redis is down."""
+    client = CacheClient()
+    # Without init_redis, delete should not raise
+    await client.delete("test-key")
diff --git a/api/tests/test_database.py b/api/tests/test_database.py
new file mode 100644
index 0000000..7e82ad8
--- /dev/null
+++ b/api/tests/test_database.py
@@ -0,0 +1,62 @@
+"""Tests for database initialization and lifecycle."""
+
+import pytest
+from sqlalchemy.ext.asyncio import AsyncSession, async_sessionmaker, create_async_engine
+
+from cartsnitch_api.database import (
+    close_db,
+    create_db_engine,
+    get_engine,
+    init_db,
+)
+
+
+@pytest.mark.asyncio
+async def test_create_db_engine_creates_engine_with_pool_settings():
+    """Test that create_db_engine creates engine with correct pool settings."""
+    engine = create_db_engine()
+    assert engine is not None
+    pool = engine.pool
+    assert pool.size() == 10
+    assert pool._max_overflow == 20
+    await engine.dispose()
+
+
+@pytest.mark.asyncio
+async def test_init_db_sets_engine_and_factory():
+    """Test that init_db properly initializes the engine and session factory."""
+    await init_db()
+    try:
+        eng = get_engine()
+        assert eng is not None
+        from cartsnitch_api import database
+
+        assert database.async_session_factory is not None
+    finally:
+        await close_db()
+
+
+@pytest.mark.asyncio
+async def test_close_db_disposes_engine():
+    """Test that close_db properly disposes the engine."""
+    await init_db()
+    await close_db()
+    assert get_engine() is None
+    from cartsnitch_api import database
+
+    assert database.async_session_factory is None
+
+
+@pytest.mark.asyncio
+async def test_get_db_yields_session_after_init():
+    """Test that get_db yields working sessions after init_db."""
+    await init_db()
+    try:
+        from cartsnitch_api.database import get_db
+
+        gen = get_db()
+        session = await gen.__anext__()
+        assert isinstance(session, AsyncSession)
+        await gen.aclose()
+    finally:
+        await close_db()
diff --git a/api/tests/test_routes/test_health.py b/api/tests/test_routes/test_health.py
new file mode 100644
index 0000000..a389967
--- /dev/null
+++ b/api/tests/test_routes/test_health.py
@@ -0,0 +1,77 @@
+"""Tests for health check endpoint."""
+
+import pytest
+from unittest.mock import AsyncMock, patch
+
+from cartsnitch_api.database import init_db, close_db
+
+
+@pytest.mark.asyncio
+async def test_health_returns_db_and_redis_fields(client):
+    """Test that health endpoint returns db and redis status fields."""
+    from cartsnitch_api.cache import init_redis, close_redis
+
+    await init_db()
+    await init_redis()
+
+    try:
+        response = await client.get("/health")
+        assert response.status_code == 200
+        data = response.json()
+        assert "status" in data
+        assert "db" in data
+        assert "redis" in data
+    finally:
+        await close_redis()
+        await close_db()
+
+
+@pytest.mark.asyncio
+async def test_health_returns_degraded_when_db_down():
+    """Test that health returns degraded when database is down."""
+    from cartsnitch_api.database import _engine
+    from cartsnitch_api.routes.health import health
+
+    # Simulate engine is None (DB not initialized)
+    with patch("cartsnitch_api.routes.health.get_engine", return_value=None):
+        response = await health()
+        assert response["status"] == "degraded"
+        assert response["db"] is False
+
+
+@pytest.mark.asyncio
+async def test_health_returns_ok_when_db_up(client):
+    """Test that health returns ok when database is up."""
+    from cartsnitch_api.database import init_db, close_db
+    from cartsnitch_api.cache import init_redis, close_redis
+
+    await init_db()
+    await init_redis()
+
+    try:
+        response = await client.get("/health")
+        assert response.status_code == 200
+        data = response.json()
+        if data["db"]:
+            assert data["status"] == "ok"
+    finally:
+        await close_redis()
+        await close_db()
+
+
+@pytest.mark.asyncio
+async def test_health_redis_down_does_not_make_unhealthy(client):
+    """Test that Redis being down does not make health return unhealthy."""
+    from cartsnitch_api.database import init_db, close_db
+
+    await init_db()
+
+    try:
+        response = await client.get("/health")
+        data = response.json()
+        # Redis being down should not make status "degraded"
+        # Only DB failure makes it degraded
+        if not data["db"]:
+            assert data["status"] == "degraded"
+    finally:
+        await close_db()
diff --git a/common/alembic/versions/002_add_normalized_products_upc_variants_index.py b/common/alembic/versions/002_add_normalized_products_upc_variants_index.py
new file mode 100644
index 0000000..037a46a
--- /dev/null
+++ b/common/alembic/versions/002_add_normalized_products_upc_variants_index.py
@@ -0,0 +1,28 @@
+"""Add GIN index on normalized_products.upc_variants for fast JSON containment lookups.
+
+Revision ID: 002_add_normalized_products_upc_variants_index
+Revises: 001_add_email_inbound_token
+Create Date: 2026-04-14
+"""
+
+from collections.abc import Sequence
+
+from alembic import op
+
+revision: str = "002_add_normalized_products_upc_variants_index"
+down_revision: str | None = "001_add_email_inbound_token"
+branch_labels: str | Sequence[str] | None = None
+depends_on: str | Sequence[str] | None = None
+
+
+def upgrade() -> None:
+    op.create_index(
+        "ix_normalized_products_upc_variants",
+        "normalized_products",
+        ["upc_variants"],
+        postgresql_using="gin",
+    )
+
+
+def downgrade() -> None:
+    op.drop_index("ix_normalized_products_upc_variants", table_name="normalized_products")
diff --git a/src/pages/Alerts.tsx b/src/pages/Alerts.tsx
index 516215b..aeb9e23 100644
--- a/src/pages/Alerts.tsx
+++ b/src/pages/Alerts.tsx
@@ -126,7 +126,7 @@ function AlertCard({
           </Link>
           <div className="mt-1 flex items-center gap-2">
             <span className="text-xs text-gray-500">Target: ${alert.targetPrice.toFixed(2)}</span>
-            <span className="text-xs text-gray-400">&middot;</span>
+            <span className="text-xs text-gray-500">&middot;</span>
             <span className={`text-xs font-medium ${isBelow ? 'text-green-700' : 'text-gray-500'}`}>
               Now: ${alert.currentPrice.toFixed(2)}
             </span>
@@ -145,7 +145,7 @@ function AlertCard({
           )}
           <button
             onClick={() => onDelete(alert.id)}
-            className="min-h-12 min-w-12 rounded-lg p-2 text-gray-400 active:bg-gray-100"
+            className="min-h-12 min-w-12 rounded-lg p-2 text-gray-500 active:bg-gray-100"
             aria-label="Delete alert"
           >
             <svg className="h-5 w-5" fill="none" viewBox="0 0 24 24" stroke="currentColor" strokeWidth={1.5}>
diff --git a/src/pages/Coupons.tsx b/src/pages/Coupons.tsx
index 2d41bc9..56cad7d 100644
--- a/src/pages/Coupons.tsx
+++ b/src/pages/Coupons.tsx
@@ -62,7 +62,7 @@ export function Coupons() {
                   <p className="mt-0.5 text-xs text-gray-500">{coupon.storeName}</p>
                   <p
                     className={`mt-1 text-xs ${
-                      expiringSoon ? 'font-medium text-orange-600' : 'text-gray-400'
+                      expiringSoon ? 'font-medium text-orange-600' : 'text-gray-500'
                     }`}
                   >
                     Expires{' '}
diff --git a/src/pages/Purchases.tsx b/src/pages/Purchases.tsx
index 8a7fc74..f4fefef 100644
--- a/src/pages/Purchases.tsx
+++ b/src/pages/Purchases.tsx
@@ -97,7 +97,7 @@ export function Purchases() {
               </div>
 
               {/* Item preview */}
-              <p className="mt-2 truncate text-xs text-gray-400">
+              <p className="mt-2 truncate text-xs text-gray-500">
                 {purchase.items
                   .slice(0, 3)
                   .map((i) => i.name)
diff --git a/src/pages/Settings.tsx b/src/pages/Settings.tsx
index 8010491..d2b8cda 100644
--- a/src/pages/Settings.tsx
+++ b/src/pages/Settings.tsx
@@ -153,7 +153,7 @@ export function Settings() {
               {copied ? 'Copied!' : 'Copy'}
             </button>
           </div>
-          <p className="mt-2 text-xs text-gray-400">
+          <p className="mt-2 text-xs text-gray-500">
             Supports Meijer, Kroger, and Target receipt emails.
           </p>
         </div>
diff --git a/src/pages/StoreComparison.tsx b/src/pages/StoreComparison.tsx
index bbbc92c..c4d7e7f 100644
--- a/src/pages/StoreComparison.tsx
+++ b/src/pages/StoreComparison.tsx
@@ -89,7 +89,7 @@ export function StoreComparison() {
                 {pp.price === lowestPrice ? (
                   <span className="text-xs font-medium text-green-600">Best price</span>
                 ) : (
-                  <span className="text-xs text-gray-400">
+                  <span className="text-xs text-gray-500">
                     +${(pp.price - lowestPrice).toFixed(2)}
                   </span>
                 )}
@@ -99,7 +99,7 @@ export function StoreComparison() {
         ))}
       </div>
 
-      <p className="mt-6 text-center text-xs text-gray-400">
+      <p className="mt-6 text-center text-xs text-gray-500">
         Prices last verified from store loyalty card data. Map view coming soon.
       </p>
     </div>