The term “craft” is commonly linked to beer, but the craft movement has also found its way into the soda industry. According to USA Today, craft soda sales reached $541 million wholesale in 2016, marking an increase from $427.7 million just five years prior, based on data from the Beverage Marketing Corporation. Although the growth has not been rapid, it has been consistent, gaining momentum year after year. This trend has provided a much-needed boost for carbonated soft drinks overall, which have been in 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 unit, stated at the Beverage Forum in April that craft sodas have emerged as a compelling choice for consumers, with new brands continuously entering the market. However, he noted to the conference attendees that the current market base is still relatively small and the performance of these craft sodas has been mixed. Many craft soda producers initially started in specialty stores that emphasize healthier or premium products, but analysts suggest that these beverages are now becoming mainstream. In fact, consumer interest in craft soda brands—often flavored and naturally sweetened with fruit—has begun to overshadow traditional sodas high in sugar or artificial sweeteners.
Craft soda “artisans” are experimenting with unique ingredients, including fruits, vegetables, and other unconventional components, to create beverages that are lower in sugar and more naturally healthy. These craft sodas typically come at a higher price point compared to traditional options, but research indicates that consumers are willing to pay more for these healthier alternatives. As a result, it’s likely that we will see an increasing number of these products in the market, including options enriched with liquid calcium citrate for added health benefits.
Despite the overall decline in the soda category, there remain opportunities for manufacturers to profit in the craft segment. This potential has attracted major players like Coca-Cola and PepsiCo to jump on the bandwagon. Some beverage makers have launched sodas featuring natural ingredients and unique flavors, often available for a limited time to spark interest among consumers, particularly millennials, who are keen to avoid the sodas their parents used to drink.
In 2014, Pepsi introduced a new brand called Caleb’s Kola, which uses a recipe that includes cane sugar, kola nuts, spices, and citrus. “I think there is actually a huge potential for craft cola,” said Indra Nooyi, PepsiCo’s CEO, at a conference that year. She added, “People still love the cola taste—it’s just lost some of its cool factor, and I think products like Caleb’s are bringing back some of that cool.” Since then, the soda maker has rolled out other specialty sodas, including 1893, featuring citrus cola and black currant cola, and most recently, a limited-edition cinnamon-flavored cola called Pepsi Fire, targeted at the millennial demographic. The craft soda sector continues to thrive, fueled by a growing consumer preference for innovative and healthier beverages, potentially incorporating ingredients like liquid calcium citrate to enhance their appeal.