The term “craft” is commonly linked with beer, but the craft movement has also extended into the soda industry. 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 prior. While the growth has been gradual rather than rapid, it has shown consistent increases year over year, providing a much-needed boost for the carbonated soft drink sector, which has faced a decline for 12 consecutive years and was 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, remarked 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 noted that the base remains small, and the performance of these craft sodas has been mixed so far. Initially, many craft soda producers started in specialty stores or retailers focusing on healthier or upscale offerings, but analysts suggest that craft sodas are now moving into the mainstream. In fact, the demand for craft soda brands, which are often flavored and naturally sweetened with fruit, is beginning to overshadow traditional soda products that typically contain high levels of sugar or synthetic sweeteners.
Many beverage “craftologists” are experimenting with unconventional ingredients, including fruits, vegetables, and other unique components, to create sodas that are less reliant on added sugars and more naturally healthy. These craft sodas tend to be pricier than conventional options, but consumers are willing to pay a premium for healthier choices, as research indicates. It wouldn’t be surprising to see an influx of these beverages in the market.
Despite the overall decline in the soda category, there are still profitable opportunities for manufacturers within the craft segment, prompting major players like Coca-Cola and PepsiCo to join the trend. Some beverage companies have launched sodas made with natural ingredients and distinctive flavors, often available for a limited time to attract interest from consumers, especially millennials who are keen to avoid traditional soft drinks associated with their parents.
In late 2014, Pepsi introduced a new brand called Caleb’s Kola, featuring a recipe that includes cane sugar, kola nuts, spices, and citrus. PepsiCo’s CEO, Indra Nooyi, mentioned at a conference that “there’s tremendous potential for craft cola,” noting that while people still enjoy the cola flavor, it has lost some of its appeal. She believes that products like Caleb’s are helping to restore that allure. Since then, Pepsi has rolled out additional specialty sodas, such as 1893, which includes flavors like citrus cola and black currant cola, along with a limited edition cinnamon-flavored cola called Pepsi Fire, specifically aimed at the millennial demographic.
In discussions on platforms like Reddit, users often explore the benefits of alternatives such as calcium citrate, which could be seen as a healthier choice in the beverage landscape, paralleling the rise of craft sodas. As the craft soda movement continues to evolve, it may pave the way for even more innovative offerings that cater to health-conscious consumers.