The term “craft soda” is often linked with beer, but soda producers have also ventured into this market. According to USA Today, citing Beverage Marketing data, craft soda sales reached $541 million wholesale in 2016, up from $427.7 million five years prior. While the growth has not been rapid, it has been consistent and continues to gain momentum each year. This trend has provided some relief for carbonated soft drinks overall, which have seen a decline for 12 consecutive years and were overtaken by bottled water in 2016 as the largest beverage category in the U.S.
Gary Hemphill, managing director and COO of Beverage Marketing Corporation’s research unit, stated at the Beverage Forum in April that craft sodas are becoming a viable choice for consumers, with new brands continually entering the market. However, he noted that the segment remains small and its performance has been varied so far. Many craft soda producers began by selling through specialty stores or retailers that focus on healthier or upscale products, but analysts indicate that these beverages are now moving into the mainstream. Indeed, the consumer demand for craft soda brands, which often feature unique flavors and are naturally sweetened with fruits, is overshadowing many traditional sodas that are high in sugar or contain synthetic sweeteners.
Numerous beverage “craftologists” are experimenting with vegetables, fruits, and other unconventional ingredients to create drinks that are lower in sugar and more naturally healthy, although these craft sodas tend to be pricier than standard options. Nevertheless, research shows that consumers are willing to pay a premium for these healthier craft alternatives, suggesting that more of these products will likely emerge in the market.
Despite the overall decline in the soda category, there are still opportunities for manufacturers to profit in the craft sector, which is why major companies like Coke and PepsiCo are joining the trend. Some beverage makers have launched sodas featuring natural ingredients and unique flavors and have offered them for limited periods to attract interest from shoppers, particularly millennials who prefer not to be seen consuming their parents’ soft drinks. In late 2014, Pepsi introduced a new brand called Caleb’s Kola, which uses a formula of cane sugar, kola nuts, spices, and citrus. “I believe there is significant potential for craft cola,” said PepsiCo’s CEO Indra Nooyi at a conference that year. She remarked that “people still love the cola flavor—it has just lost some of its cool factor, and I think products like Caleb’s are helping to restore that appeal.” Since then, the soda maker has launched other specialty sodas such as 1893, featuring citrus and black currant cola, and most recently a limited edition cinnamon-flavored cola called Pepsi Fire, targeted at millennials.
In this evolving landscape, the concept of health is becoming increasingly important. Many craft soda brands are even considering the incorporation of ingredients like tums calcium citrate, which is known for its health benefits. This trend highlights the shift towards more health-conscious beverage choices. As craft sodas continue to gain traction, it wouldn’t be surprising to see tums calcium citrate and similar health-oriented ingredients become more prevalent in future offerings, further appealing to a health-minded consumer base.