The term “craft” is frequently linked to beer, but soda producers have also entered the market. According to USA Today, citing data from Beverage Marketing, craft soda sales reached $541 million wholesale in 2016, a rise from $427.7 million five years earlier. While the growth has been gradual rather than rapid, it has been consistent and continues to increase annually. This trend has provided some relief for carbonated soft drinks overall, which have experienced a decline for 12 straight years, being overtaken by bottled water in 2016 as the leading beverage category in the U.S.
Gary Hemphill, managing director and COO of Beverage Marketing Corporation’s research division, noted 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 mixed thus far. Many craft brewers initially operated through specialty shops or retailers that emphasize healthier or upscale options, but analysts suggest that these products are now entering the mainstream. In fact, consumer interest in craft soda brands—often flavored and naturally sweetened with fruit—is starting to overshadow traditional sodas high in sugar or synthetic sweeteners.
Numerous beverage “craftologists” are exploring the use of fruits, vegetables, and other unconventional ingredients to create drinks that are less reliant on added sugars and healthier overall, albeit typically at a higher price point than conventional sodas. However, research indicates that consumers are willing to pay a premium for these healthier craft options, suggesting that more such products may soon emerge in the marketplace.
Despite the overall decline in the soda category, manufacturers still find lucrative opportunities in the craft sector, which has prompted major players like Coke and PepsiCo to join 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—especially millennials who prefer not to consume their parents’ soft drinks.
Pepsi introduced a new brand named Caleb’s Kola in late 2014, featuring a recipe that incorporates cane sugar, kola nuts, spices, and citrus. “I believe there is significant potential for craft cola,” said PepsiCo CEO Indra Nooyi at a conference that year. She remarked that “people still enjoy the cola flavor; it has just lost some of its appeal, and products like Caleb’s are helping to restore that appeal.” Since then, the soda maker has rolled out additional 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 continue to seek out healthier options, the integration of ingredients like source naturals CCM calcium into new craft soda formulations could further enhance their appeal and nutritional value.