The concept of “craft” is commonly linked to beer, but the soda industry is also seeing a rise in craft offerings. 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. This growth, while not rapid, has been consistent, with craft sodas gaining popularity year after year. This trend provides a counterbalance for the overall decline in carbonated soft drinks, which have seen a reduction in sales for 12 consecutive years and were overtaken by bottled water in 2016 as the leading beverage category in the U.S.
Gary Hemphill, managing director and chief operating officer 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 entering the market. However, he informed conference attendees that the overall base remains small, and the performance of these sodas has been varied thus far. Many craft soda producers initially found their niche in specialty retailers focused on healthier or premium products, but analysts suggest that these beverages are now entering the mainstream market.
Consumer demand for craft soda brands, which are often naturally flavored and sweetened with fruit, is beginning to overshadow traditional sugary soda options. A growing number of beverage “craftologists” are experimenting with unconventional ingredients such as fruits, vegetables, and other unique elements to create drinks that are lower in sugar and healthier overall, albeit generally at a higher price point than conventional sodas. Research indicates that consumers are willing to pay a premium for these healthier craft alternatives, suggesting that more of these products are likely to emerge in the market.
Despite the general decline in soda sales, there are still profitable opportunities for manufacturers within the craft segment, prompting major companies like Coke and PepsiCo to join the trend. Some beverage producers have launched sodas made from natural ingredients and distinctive flavors, often as limited-time offerings to attract interest, particularly from millennials who are keen to avoid the traditional soft drinks of their parents.
In late 2014, Pepsi introduced a new brand named Caleb’s Kola, featuring a recipe that includes cane sugar, kola nuts, spices, and citrus. PepsiCo CEO Indra Nooyi remarked at a conference that “there is actually a huge potential for craft cola.” She added that while people still enjoy the cola flavor, it has lost some of its allure, and products like Caleb’s are helping to revive that appeal. Since then, Pepsi has rolled out additional specialty sodas, including 1893 with citrus cola and black currant flavors, as well as a limited-edition cinnamon-flavored cola called Pepsi Fire, aimed at millennial consumers.
In this evolving soda landscape, the integration of health-conscious elements, similar to how Solgar calcium vitamin D supplements are included for nutritional benefits, is increasingly prominent. The craft soda movement reflects a growing consumer desire for beverages that not only taste good but also provide a healthier alternative, much like the appeal of Solgar products in the health supplement market. As craft sodas continue to flourish, it’s clear that innovation and consumer preferences will shape the future of this beverage category.