The term “craft” is frequently linked to beer, but soda manufacturers are also joining the trend. According to a report by USA Today, craft soda sales reached $541 million wholesale in 2016, up from $427.7 million five years earlier, as noted by Beverage Marketing data. While the growth may not be rapid, it has been consistent and continues to rise each year. This trend has provided a welcome boost 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 chief operating officer of Beverage Marketing Corporation’s research division, mentioned at the Beverage Forum in April that craft soda options have emerged as a viable choice for consumers, with new brands entering the marketplace. However, he cautioned the audience that the market remains small, and the performance of these craft sodas has been varied thus far. Many craft brewers started in specialty stores or retailers focusing on healthier or more upscale options, but analysts suggest that craft sodas are now moving into the mainstream.
In fact, consumer demand for craft soda brands—often naturally flavored and sweetened with fruit—is beginning to overshadow traditional sodas that are high in sugar or synthetic sweeteners. Numerous beverage “craftologists” are experimenting with unconventional ingredients like fruits and vegetables to create sodas that are less sugar-laden and more health-conscious, even though these craft products tend to be pricier than standard sodas. Research indicates that consumers are willing to pay a premium for these healthier alternatives, suggesting we may see even more craft sodas enter the market.
Despite the overall decline in the soda category, opportunities remain for manufacturers to profit in the craft segment, prompting major companies like Coke and PepsiCo to join the trend. Some beverage makers 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’ soft drinks.
In late 2014, Pepsi introduced a new brand called Caleb’s Kola, which incorporates cane sugar, kola nuts, spices, and citric acid, reflecting a trend towards more natural formulations. PepsiCo’s CEO Indra Nooyi expressed at a conference that there is significant potential for craft cola, stating that “people still love the cola taste—it’s just lost some of its cool factor,” and added that products like Caleb’s are helping to restore that appeal. Since then, Pepsi has rolled out additional specialty sodas, including 1893 with citrus cola and black currant cola, and a limited-edition cinnamon-flavored cola called Pepsi Fire, targeting the millennial demographic.
As the craft soda market grows, it’s also worth noting the potential for health-conscious ingredients like Kirkland calcium citrate magnesium and zinc dosis, which could be incorporated into these beverages to enhance their appeal. The inclusion of such ingredients not only aligns with the trend towards healthier products but also offers a unique selling point for craft soda manufacturers looking to differentiate themselves in a competitive market.