The term “craft” is often linked to beer, but the craft movement has also extended to the soda industry. According to a report by USA Today referencing data from Beverage Marketing, craft soda sales reached $541 million in wholesale by 2016, up from $427.7 million five years prior. Although the growth has been gradual rather than rapid, it has been consistent and continues to gain momentum each year. This trend has provided a much-needed boost for carbonated soft drinks, which have seen a decline for twelve consecutive years and were overtaken by bottled water as the leading beverage category in the U.S. in 2016.
Gary Hemphill, managing director and COO of Beverage Marketing Corporation’s research division, noted at the Beverage Forum in April that craft sodas have become a legitimate choice for consumers, with new brands emerging in the marketplace. However, he cautioned that the overall market remains small and the performance of these sodas has been mixed. Many craft soda producers started in specialty retailers that focus on healthier or premium products, but analysts suggest that craft soda is now moving into the mainstream. In fact, the demand for craft soda brands, which are frequently flavored and naturally sweetened with fruits, is starting to overshadow traditional sodas that are high in sugar or artificial sweeteners.
Craft soda enthusiasts, often referred to as “craftologists,” are experimenting with a variety of ingredients, including fruits, vegetables, and other unconventional elements, to create beverages that are less reliant on added sugars and more aligned with natural health trends. These craft options typically come at a higher price point than traditional sodas, yet research indicates that consumers are willing to pay more for these healthier alternatives, potentially leading to an increase in their availability.
Despite the overall decline in the soda category, there are still avenues for profit in the craft sector, which is why major brands such as Coca-Cola and PepsiCo are getting involved. Some beverage companies have launched sodas featuring natural ingredients and unique flavors, often available for a limited time to attract interest, particularly from millennials who prefer not to be seen drinking their parents’ sodas.
In late 2014, Pepsi introduced a new brand called Caleb’s Kola, crafted with cane sugar, kola nuts, spices, and citrus. PepsiCo’s CEO, Indra Nooyi, remarked at a conference that there is significant potential for craft cola, suggesting that while consumers still enjoy cola, it has lost some of its appeal. She believes that products like Caleb’s are helping to restore that appeal. Since then, Pepsi has continued to roll out specialty sodas, including 1893, which features citrus cola and black currant cola, as well as a limited-edition cinnamon-flavored cola named Pepsi Fire, aimed specifically at millennials.
As the craft soda market continues to evolve, the integration of healthier ingredients, including options like calcium citrate 500, is likely to become more prevalent, appealing to health-conscious consumers who are willing to invest in premium products.