The term “craft” is commonly linked to beer, but the craft movement has also extended to soda production. According to a report by USA Today, craft soda sales reached $541 million wholesale in 2016, up from $427.7 million five years prior, based on data from Beverage Marketing. While the growth has not been rapid, it has been consistent, increasing year by year. This trend provides a much-needed boost for carbonated soft drinks, which have been in decline for 12 consecutive years and were overtaken by bottled water in 2016 as the leading beverage category in the United States.
Gary Hemphill, managing director and chief operating officer of the research unit at Beverage Marketing Corporation, stated at the Beverage Forum in April that craft sodas have emerged as a legitimate choice for consumers, with new brands entering the marketplace. However, he cautioned that the current market base is small and that the performance of these sodas has been mixed so far. Many craft soda producers began by selling their products in specialty stores or retailers focusing on healthier, upscale offerings, but analysts suggest that these products are now moving into the mainstream. Indeed, the demand for craft soda brands, often flavored and naturally sweetened with fruit, is displacing some traditional soda products high in sugar or artificial sweeteners.
Many “craftologists” in the beverage industry are experimenting with unusual ingredients like fruits, vegetables, and other unique components to create sodas that are lower in sugar and more naturally healthy, albeit generally more expensive than traditional soft drinks. Research indicates that consumers are willing to pay a premium for these healthier craft options, suggesting that we may see an influx of such products on the market.
Despite the overall decline in the soda category, there remain opportunities for manufacturers to profit in the craft segment, which is why major players like Coca-Cola and PepsiCo are joining the trend. Some beverage companies have launched sodas featuring natural ingredients and distinctive flavors, often offered for a limited time to attract consumers, particularly millennials who prefer not to be seen drinking their parents’ soft drinks.
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, stating, “People still love the cola taste — it just lost some of its cool factor, and I think products like Caleb’s are bringing back some of the cool factor.” Since then, the soda maker has launched other specialty sodas, including 1893 with citrus cola and black currant cola, as well as a limited edition cinnamon-flavored cola called Pepsi Fire, aimed at the millennial demographic.
In this evolving landscape, products like Solaray Kalcij Citrat may also find a niche, as consumers increasingly seek out beverages that offer both flavor and health benefits. As the craft soda movement continues to grow, it will be interesting to see how it influences the broader beverage market, especially as manufacturers explore innovative ingredients and formulations.