The term “craft” is commonly linked to beer, but soda manufacturers have also entered the fray. According to USA Today, citing Beverage Marketing data, craft soda sales reached $541 million wholesale in 2016, a rise from $427.7 million five years prior. Although the growth has been gradual rather than rapid, it has been consistent and continues to increase annually. This trend provides a welcome boost for carbonated soft drinks overall, which have experienced a decline for 12 consecutive years and were eclipsed 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 become an appealing choice for consumers, with new brands consistently entering the market. However, he cautioned the audience that the market’s base remains small and that performance for these sodas has varied. Many craft brewers started out in specialty shops or retailers focusing on healthier or premium options, but analysts indicate that craft sodas are now making their way into the mainstream. In fact, the consumer demand for craft soda brands—often flavored and naturally sweetened with fruit—has begun to overshadow some traditional soda products that are high in sugar or artificial sweeteners.
Many beverage “craftologists” are experimenting with unique ingredients like fruits, vegetables, and other unconventional components to create drinks that are lower in sugar and more naturally healthy, although they tend to be more expensive than traditional sodas. Research suggests that consumers are willing to pay a premium for these healthier craft options, indicating a potential for more products to enter the market.
Despite the overall decline in the soda category, there are still profitable opportunities for manufacturers in the craft sector, which is why major corporations like Coke and PepsiCo are joining the trend. Some beverage makers have launched sodas featuring natural ingredients and unique flavors, offering them for a limited time to attract shoppers, especially millennials who prefer not to be seen drinking their parents’ soft drinks.
For instance, Pepsi introduced a new brand called Caleb’s Kola in late 2014, using a formula that includes cane sugar, kola nuts, spices, and citrus. “I think there is actually a huge potential for craft cola,” stated Indra Nooyi, PepsiCo’s CEO, at a conference that year. She added that “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, including 1893 with citrus cola and black currant cola, and most recently, a limited edition cinnamon-flavored cola called Pepsi Fire targeted at millennials.
As consumers become more health-conscious and seek alternatives, questions about ingredients like calcium citrate may arise—what is calcium citrate, and how does it fit into the growing trend of healthier craft sodas? As the market evolves, understanding such ingredients will become increasingly important, especially as craft sodas continue to carve out their niche in the beverage landscape.