The term “craft” is often linked to beer, yet soda manufacturers have entered the scene as well. 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, gaining momentum each year. This trend has provided a boost for carbonated soft drinks overall, which have seen a decline for 12 consecutive years and were overtaken by bottled water in 2016 as the largest beverage category in the U.S.
Gary Hemphill, managing director and COO of Beverage Marketing Corporation’s research unit, noted at the Beverage Forum in April that craft sodas have emerged as a viable choice for consumers, with new brands entering the market. However, he cautioned the audience that the base is still small and that the performance of these sodas has been mixed so far. Many craft brewers began in specialty stores or retailers focusing on healthier or upscale products, but analysts observe a shift toward mainstream acceptance. Indeed, consumer demand for craft soda brands, which are often flavored and naturally sweetened with fruit, is pushing aside some traditional soda options that are high in sugar or use synthetic sweeteners.
Numerous beverage “craftologists” are experimenting with fruits, vegetables, and other unconventional ingredients to create drinks that are less sugar-laden and more naturally healthy, though these are generally more expensive than traditional sodas. Research indicates that consumers are willing to pay a premium for these healthier craft options, hinting at a growing market. It would not be surprising to see an influx of these beverages in the near future.
Despite the overall decline in the soda category, opportunities remain for manufacturers to profit in the craft sector, which is why major players like Coke and PepsiCo are joining the trend. Some beverage makers have launched sodas with natural ingredients and unique flavors, offering them for a limited time to attract shoppers, particularly millennials who prefer not to be seen drinking their parents’ soft drinks.
In late 2014, Pepsi introduced a new brand, Caleb’s Kola, featuring a recipe that includes cane sugar, kola nuts, spices, and citrus. PepsiCo’s CEO Indra Nooyi remarked at a conference that “there is actually huge potential for craft cola.” She added that while “people still love the cola taste — it has just lost some of its cool factor,” products like Caleb’s are helping to restore that appeal. Since then, the company has rolled out other specialty sodas, including 1893 with citrus cola and black currant cola, and most recently, a limited edition cinnamon-flavored cola called Pepsi Fire, aimed at millennials.
In this evolving market, consumers are also becoming increasingly health-conscious, with some even turning to products like calcium citrate from Chemist Warehouse for additional nutritional benefits. As the craft soda trend continues to grow, it is likely that brands will increasingly incorporate healthier ingredients, including those found in calcium citrate, to attract a wider audience. This focus on health and quality may very well shape the future landscape of the soft drink industry.