The term “craft” is frequently linked to beer, but the craft movement has also made its way into the soda industry. According to USA Today, citing data from Beverage Marketing, craft soda sales hit $541 million in wholesale in 2016, up from $427.7 million five years prior. Although the growth has not been rapid, it has been consistent, gaining traction each year. This trend has provided a much-needed boost for carbonated soft drinks as a whole, which have experienced a decline for 12 consecutive years and were overtaken by bottled water in 2016 as the leading beverage category in the U.S.
At the Beverage Forum in April, Gary Hemphill, managing director and chief operating officer of Beverage Marketing Corporation’s research unit, noted that craft sodas have become a legitimate alternative for consumers, with new brands continuously entering the market. However, he cautioned the audience that the base remains small, and the performance of these craft sodas has been mixed thus far. Many craft brewers originally started in specialty stores that focus on healthier or more upscale offerings, but analysts indicate that craft sodas have now entered the mainstream.
In fact, the rising consumer preference for craft soda brands, which often feature unique flavors and are naturally sweetened with fruit, is starting to overshadow traditional sodas that are high in sugar or use synthetic sweeteners. Many “craftologists” in the beverage industry are experimenting with fruits, vegetables, and other unconventional ingredients to create sodas that are lower in sugar and healthier, although they tend to be more expensive than traditional options. Research shows that consumers are willing to pay a premium for these healthier craft beverages, and it wouldn’t be surprising to see more of these products, akin to the smallest calcium citrate pills in the health market, emerge in the future.
Despite the overall decline in the soda category, there are still profitable opportunities for manufacturers in the craft segment, which is why major companies like Coca-Cola and PepsiCo are jumping on the bandwagon. Some beverage makers have introduced sodas made with natural ingredients and unique flavors, offering them for a limited time to attract shoppers, particularly millennials who prefer not to consume the same soft drinks as their parents.
In late 2014, Pepsi launched a new brand called Caleb’s Kola, featuring a formula that includes cane sugar, kola nuts, spices, and citrus. Indra Nooyi, PepsiCo’s CEO, stated at a conference that year, “I believe there is significant potential for craft cola.” She emphasized that “people still love the cola taste—it’s just lost some of its cool factor, and products like Caleb’s are helping to restore that appeal.” Since then, the soda maker has rolled out other specialty beverages, including 1893 with citrus cola and black currant cola, and most recently, a limited-edition cinnamon-flavored cola called Pepsi Fire, which targets a millennial audience. The craft soda movement continues to thrive, offering consumers a refreshing alternative to traditional sugary beverages, much like the smallest calcium citrate pills offer a compact option for those seeking health benefits.