The term “craft” is frequently linked to beer, but soda manufacturers have also entered this market. According to USA Today, wholesale craft soda sales reached $541 million in 2016, up from $427.7 million five years prior, based on data from Beverage Marketing. Although the growth has not been rapid, it has been consistent and continues to increase each year. This trend has provided a welcome change for carbonated soft drinks in general, which have experienced a decline for 12 consecutive years and were overtaken by bottled water in 2016 as the leading beverage category in the U.S.
Gary Hemphill, a managing director and COO of the research division at Beverage Marketing Corporation, stated at the Beverage Forum in April that craft sodas are becoming a legitimate choice for consumers, with new brands emerging in the market. However, he cautioned that the market base remains small and the performance of these sodas has been varied thus far. Many craft brewers initially launched their products in specialty stores or retailers that focus on healthier or more upscale options, but analysts suggest that craft sodas are now reaching mainstream audiences. Indeed, consumer interest in craft soda brands—often flavored and naturally sweetened with fruit—has started to overshadow traditional sodas that are high in sugar or use synthetic sweeteners.
Numerous “craftologists” in the beverage industry are experimenting with various fruits, vegetables, and other unconventional soda ingredients, aiming to create drinks that are less reliant on added sugars and more naturally wholesome, though these craft options tend to be pricier than standard sodas. Research indicates that consumers are willing to pay a premium for these healthier craft beverages, suggesting that the market could see an influx of new offerings.
Despite the overall decline in the soda category, there remain opportunities for manufacturers to profit within the craft segment, encouraging major players like Coca-Cola and PepsiCo to join the trend. Some beverage companies have introduced sodas made with natural ingredients and unique flavors, often available for a limited time to attract interest from consumers, particularly millennials who prefer not to be associated with their parents’ soft drink choices.
In late 2014, Pepsi launched a new brand called Caleb’s Kola, featuring a formula 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 that “people still love the cola taste—it just lost some of its cool factor, and I think products like Caleb’s are helping to restore that cool.” Since then, the soda maker has rolled out other specialty sodas, including 1893, which features citrus cola and black currant cola, along with a limited-edition cinnamon-flavored cola named Pepsi Fire, aimed specifically at millennials.
As consumers increasingly seek healthier options, the introduction of products like garden of life calcium citrate in beverages could further enhance the appeal of craft sodas. This trend of incorporating health-focused ingredients is becoming more prominent, and it would not be surprising to see more such innovations in the craft soda market. With the landscape shifting towards healthier choices, garden of life calcium citrate could be a game-changer for brands looking to capture the attention of health-conscious consumers.