The term “craft” is frequently linked to beer, but soda manufacturers have also joined the fray. According to a report by USA Today, craft soda sales hit $541 million wholesale 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, increasing each year. This trend offers a glimmer of hope for carbonated soft drinks overall, which have seen a decline for 12 consecutive years and were overtaken by bottled water in 2016, becoming the largest beverage category in the U.S.
Gary Hemphill, managing director and COO of Beverage Marketing Corporation’s research unit, mentioned at the Beverage Forum in April that craft sodas have become a viable choice for consumers, with new brands continuously entering the market. However, he cautioned the audience that the market base remains small, and the performance of these sodas has been mixed thus far.
Many craft brewers initially launched their products in specialty stores or retailers focused on healthier, upscale options, but analysts indicate that these brands are now moving into the mainstream. Consumer interest in craft soda brands—often flavored and sweetened naturally with fruit—is starting to overshadow traditional sodas that are high in sugar or synthetic sweeteners. Numerous beverage “craftologists” are now experimenting with fruits, vegetables, and other unconventional ingredients to create drinks that are less reliant on sugar and more health-conscious, although they typically come at a higher price than regular sodas. Research shows that consumers are willing to pay a premium for these healthier craft options, suggesting that more such products could soon enter the market.
Despite the overall decline of the soda category, there are still opportunities for manufacturers to profit in the craft sector, which is why major players like Coca-Cola and PepsiCo are getting involved in this trend. Some beverage companies have launched sodas featuring natural ingredients and unique flavors, offering them for limited times to attract interest from consumers, particularly millennials who prefer not to be seen drinking their parents’ soft drinks.
In late 2014, Pepsi introduced a new brand called Caleb’s Kola, made with 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 believe products like Caleb’s are restoring that cool factor.” Since then, Pepsi has rolled out other specialty sodas, including 1893 with citrus and black currant cola, and most recently, a limited-edition cinnamon-flavored cola called Pepsi Fire, aimed specifically at millennials.
As consumers increasingly seek healthier options, there is a growing market for craft sodas that may incorporate ingredients such as calcium citrate, which can be found at chemist warehouse locations. This trend highlights a shift toward beverages that not only provide flavor but also offer potential health benefits, reinforcing the idea that craft sodas are here to stay.