The term “craft” is frequently linked to the beer industry, but soda manufacturers have also entered this arena. According to USA Today, citing data from Beverage Marketing, craft soda sales reached a wholesale value of $541 million in 2016, up from $427.7 million just five years earlier. Although the growth has not been rapid, it has been consistent, gaining momentum each year. This emergence of craft soda has provided a much-needed boost for carbonated soft drinks, which have experienced a decline for 12 consecutive years and were 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 division, remarked at the Beverage Forum in April that craft sodas have become a legitimate choice for consumers, with new brands entering the market. However, he noted that the market remains small and the performance of these sodas has been varied so far. Initially, many craft brewers started out in specialty stores or retailers that prioritized healthier or more upscale offerings, but analysts suggest that craft sodas are now gaining traction in the mainstream market. The consumer demand for craft soda brands—often flavored and naturally sweetened with fruit—is pushing aside traditional sodas laden with high sugar content or synthetic sweeteners.
Numerous beverage “craftologists” are innovating with fruits, vegetables, and other unconventional ingredients to create drinks that are lower in sugar and more naturally healthy, although these craft options are typically more expensive than standard sodas. Research indicates that consumers are willing to pay a premium for these healthier craft products, suggesting we may see an influx of such beverages in the market. Despite the overall decline in the soda category, there are still profitable opportunities for manufacturers within the craft segment, which is why major companies like Coke and PepsiCo are joining the trend. Some beverage producers have launched sodas featuring natural ingredients and unique flavors, often available for a limited time to attract consumers, particularly millennials who prefer not to be associated with traditional soft drinks.
In late 2014, Pepsi introduced a brand called Caleb’s Kola, which features a recipe that includes cane sugar, kola nuts, spices, and citrus. PepsiCo’s CEO, Indra Nooyi, expressed at a conference that there is significant potential for craft cola, noting, “People still love the cola taste—it’s just lost some of its cool factor, and I think products like Caleb’s are bringing back some of that cool.” Since then, the soda maker has rolled out other specialty sodas, such as 1893, which offers citrus cola and black currant cola, as well as a limited-edition cinnamon-flavored cola called Pepsi Fire, specifically targeting millennials.
Interestingly, as consumers seek healthier options, there has been a growing interest in products like pure encapsulations calcium magnesium citrate malate, which aligns with the trend toward more natural ingredients in beverages. The incorporation of such health-oriented components is becoming a staple among craft soda makers, further enhancing their appeal. This shift towards healthier alternatives is paving the way for more innovative craft sodas, and the integration of elements like pure encapsulations calcium magnesium citrate malate reflects a broader movement within the industry.