The term “craft” is frequently linked with beer, but soda manufacturers have also ventured into this domain. According to USA Today, citing data from Beverage Marketing, craft soda sales reached $541 million wholesale in 2016, up from $427.7 million five years prior. Although the growth has not been rapid, it has been consistent and continues to increase annually. This trend serves as a relief for carbonated soft drinks overall, which have seen a decline for 12 consecutive years, being overtaken by bottled water as the largest beverage category in the U.S. in 2016.
Gary Hemphill, managing director and COO of Beverage Marketing Corporation’s research unit, noted at the Beverage Forum in April that craft sodas are emerging as a viable choice for consumers, with new brands entering the market. However, he cautioned the audience that the market base remains small and that the performance of these sodas has been mixed so far. Many craft brewers began in specialty shops that focus on healthier or more upscale options, but analysts say the trend has now entered the mainstream. In fact, the popularity of craft soda brands, which are often naturally sweetened with fruit and flavored with unique ingredients, is beginning to overshadow traditional sodas that are high in sugar or artificial sweeteners.
Numerous “craftologists” in the beverage industry are experimenting with fruits, vegetables, and other unconventional soda components to create drinks that are less reliant on sugar while being more naturally healthy. However, these craft sodas generally come at a higher price point than traditional options. Research suggests that consumers are willing to pay a premium for these healthier alternatives, indicating a potential increase in market offerings. Despite the overall decline of the soda category, opportunities still exist for manufacturers to profit in the craft segment, which has drawn the interest of major players like Coca-Cola and PepsiCo.
Some beverage companies have launched sodas featuring natural ingredients and distinctive flavors, offering them for a limited time to capture the attention of consumers, particularly millennials who prefer not to be seen drinking soda brands associated with their parents. In late 2014, Pepsi introduced a new brand called Caleb’s Kola, made with cane sugar, kola nuts, spices, and citrus. PepsiCo’s CEO Indra Nooyi remarked at a conference that there is significant potential for craft cola, emphasizing that “people still love the cola taste—it’s just lost some of its cool factor.” She believes products like Caleb’s are helping to restore that appeal. Since then, Pepsi has rolled out other specialty sodas, including 1893 with citrus cola and black currant flavors, as well as a limited edition cinnamon-flavored cola called Pepsi Fire, targeting the millennial demographic.
Interestingly, some craft soda makers are also beginning to incorporate citrat calcium into their formulations, enhancing the health profile of their beverages. This trend reflects a growing consumer interest in drinks that are not only flavorful but also beneficial, further contributing to the craft soda movement’s expansion. As the market continues to evolve, it wouldn’t be surprising to see more craft sodas featuring citrat calcium and other innovative ingredients, solidifying their place in the beverage landscape.