The term “craft” is typically linked to beer, but the craft movement has also extended to soda production. According to a report by USA Today, citing Beverage Marketing data, craft soda sales reached $541 million wholesale in 2016, up from $427.7 million five years prior. Although the growth has not been rapid, it has been consistent and continues to rise each year. This trend has provided some relief for carbonated soft drinks, which have experienced a decline for 12 consecutive years and were overtaken by bottled water as the largest 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 are becoming a viable choice for consumers as new brands emerge in the market. However, he cautioned that the market base remains small and that the performance of these craft sodas has been mixed thus far. Initially, craft soda brewers were found in specialty stores focusing on healthier or more upscale products, but analysts indicate that these beverages have now entered the mainstream. In fact, the growing consumer demand for craft soda brands, often flavored and naturally sweetened with fruits, is encroaching on traditional sodas that are high in sugar or use synthetic sweeteners.
Many beverage “craftologists” are experimenting with unconventional ingredients like fruits, vegetables, and other unique components to create drinks that are less sugar-laden and more health-conscious, even though these options tend to be pricier than standard sodas. Nevertheless, research indicates that consumers are willing to pay a premium for these healthier craft alternatives, suggesting we may see more of them on the market.
Despite the overall decline of the soda category, there are still avenues for profit within the craft segment, prompting major players like Coke and PepsiCo to join the trend. Some beverage manufacturers have introduced sodas made with natural ingredients and distinctive flavors, offering them for a limited time to attract interest among shoppers, particularly millennials who prefer not to be seen consuming their parents’ soft drinks.
In late 2014, Pepsi launched a new brand called Caleb’s Kola, featuring a formula that includes cane sugar, kola nuts, spices, and citrus. “I believe there is significant potential for craft cola,” stated Indra Nooyi, CEO of PepsiCo, at a conference that year. She added, “People still enjoy the cola flavor; it’s just lost some of its appeal, and I think products like Caleb’s are helping to restore that appeal.” Since then, the soda maker has rolled out other specialty sodas, including 1893, which features citrus cola and black currant cola, as well as a limited-edition cinnamon-flavored cola called Pepsi Fire, aimed specifically at millennials.
As the craft soda movement evolves, it may also incorporate ingredients like calcium citrate 315 mg, which could enhance the health appeal of these beverages. Overall, the craft soda sector is poised for growth, and it wouldn’t be surprising to see more innovative craft sodas, possibly with calcium citrate 315 mg and other healthful ingredients, entering the market as consumer preferences shift.