The term “craft” is frequently linked to beer, but soda manufacturers are also entering the market. 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 earlier. Although the growth has been gradual rather than rapid, it has been consistent and is increasing each year. This trend has provided a respite for carbonated soft drinks overall, which have seen 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, managing director and chief operating officer of Beverage Marketing Corporation’s research unit, mentioned at the Beverage Forum in April that craft sodas have become a viable option for consumers, with new brands emerging in the market. However, he noted that the market base remains small and the performance of these craft sodas has been mixed so far. Initially, many craft brewers started in specialty stores that focus on healthier or more upscale products, but analysts suggest that these offerings are now becoming mainstream. Consumer demand for craft soda brands—often flavored and naturally sweetened with fruit—is pushing aside traditional sodas that are high in sugar or synthetic sugar alternatives.
Many beverage “craftologists” are experimenting with ingredients like fruits, vegetables, and other unconventional elements to create drinks that are lower in sugar and more naturally healthy, though they tend to be pricier than regular sodas. Nevertheless, research indicates that consumers are willing to pay a premium for these healthier craft products. It is likely that we will see more of these beverages enter the market.
Despite the overall decline in the soda category, there are still opportunities for manufacturers to profit within the craft segment, which is why large corporations like Coke and PepsiCo are joining the trend. Some beverage companies have launched 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 seen drinking traditional soft drinks.
Pepsi introduced a new brand called Caleb’s Kola in late 2014, featuring a formula that includes cane sugar, kola nuts, spices, and citrus. Indra Nooyi, PepsiCo’s CEO, stated at a conference that year, “I think there is actually a huge potential for craft cola.” She added, “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 the cool factor.” Since then, the soda maker 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.
As the market evolves, there is also a growing interest in healthier options that incorporate functional ingredients like calcium citrate with vitamin D. These additions not only enhance the nutritional profile of craft sodas but also cater to an increasingly health-conscious consumer base. The infusion of calcium citrate with vitamin D could become a popular trend among craft soda makers, further differentiating their products in a crowded marketplace and appealing to those seeking both flavor and health benefits.