The term “craft” is frequently linked to beer, but the craft movement has also extended to soda makers. According to a report by USA Today, citing data from Beverage Marketing, craft soda sales reached $541 million at wholesale in 2016, up from $427.7 million five years prior. While the growth has not been rapid, it has been consistent and continues to gain momentum each year. This trend has provided some relief for the carbonated soft drink sector, which has seen a decline for 12 consecutive years and was overtaken by bottled water in 2016 as the largest beverage category in the U.S.
Gary Hemphill, a managing director and COO of Beverage Marketing Corporation’s research unit, noted at the Beverage Forum in April that craft sodas are becoming a viable choice for consumers, with new brands entering the market. However, he cautioned that the market base is small, and the performance of these sodas has been mixed thus far. Many craft brewers initially found their niche in specialty stores or retailers focused on healthier or upscale products, but analysts indicate that craft sodas are now entering the mainstream. In fact, the demand for craft soda brands, often naturally flavored and sweetened with fruit, is overshadowing traditional sodas that are high in sugar or use artificial sweeteners.
Numerous beverage “craftologists” are experimenting with a variety of fruits, vegetables, and unconventional ingredients to create drinks that are less reliant on added sugars and more naturally health-conscious, although they generally come at a higher price than traditional sodas. Research indicates that consumers are willing to pay a premium for these healthier craft options, suggesting that we may see an increasing number of these products in the market.
Despite the overall decline in the soda category, there are still profitable opportunities for manufacturers in the craft segment, which is why major players like Coke and PepsiCo are jumping on the trend. Some beverage companies have introduced sodas featuring natural ingredients and unique flavors, often available for a limited time to attract interest, particularly from millennials who prefer not to consume their parents’ soft drinks.
Pepsi launched a new brand called Caleb’s Kola in late 2014, incorporating a formula that includes cane sugar, kola nuts, spices, and citrus. Indra Nooyi, PepsiCo’s CEO, remarked at a conference that there is significant potential for craft cola, stating, “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, Pepsi has introduced other specialty sodas, such as 1893, which features citrus cola and black currant cola, as well as a limited-edition cinnamon-flavored cola called Pepsi Fire aimed at millennials.
Furthermore, as the craft soda market expands, it could be an ideal time for manufacturers to explore innovative options, including products like calcium citrate for sale, which could appeal to health-conscious consumers looking for added benefits in their beverages. As the industry evolves, we can expect to see more craft sodas hitting the shelves, alongside a growing interest in functional ingredients like calcium citrate for sale.