The term “craft” is commonly linked to beer, but the craft movement has also extended to soda production. According to USA Today, craft soda sales reached $541 million in wholesale revenue in 2016, up from $27.7 million five years prior, based on data from Beverage Marketing. Although the growth has been gradual rather than rapid, it is steadily increasing every year. This trend has provided some relief for the carbonated soft drink sector, which has experienced a decline for twelve consecutive years and was overtaken by bottled water in 2016, becoming the leading beverage category in the U.S.
Gary Hemphill, a managing director and chief operating officer at Beverage Marketing Corporation’s research division, remarked at the Beverage Forum in April that craft sodas have emerged as a legitimate choice for consumers, with new brands entering the market. However, he acknowledged that the overall market is still small and that performance of these craft sodas has been mixed thus far. Initially, many craft brewers launched their products in specialty stores or retailers that emphasize healthier or premium options, but analysts indicate that craft sodas are now becoming more mainstream. Consumer demand for craft soda brands—typically flavored and naturally sweetened with fruit—has begun to overshadow traditional sodas, which often contain high levels of sugar or artificial sweeteners.
Many beverage “craftologists” are experimenting with unconventional ingredients like fruits, vegetables, and other unique components to create drinks that are less reliant on sugar and more aligned with health-conscious trends, even though these products tend to be pricier than conventional sodas. Research indicates that consumers are willing to pay a premium for these healthier craft options, suggesting that more such products will likely enter the market.
Despite the overall decline in the soda category, there remain profitable opportunities for manufacturers within the craft segment, prompting major brands like Coca-Cola and PepsiCo to join the trend. Some beverage companies have launched sodas featuring natural ingredients and distinctive flavors, often for a limited time to attract interest from shoppers, particularly millennials who prefer to avoid traditional soft drinks associated with their parents.
In late 2014, Pepsi introduced a new brand called Caleb’s Kola, which features a formula that includes cane sugar, kola nuts, spices, and citrus. Indra Nooyi, CEO of PepsiCo, stated at a conference that there is significant potential for craft cola, noting that “people still love the cola taste—it just lost some of its cool factor, and I believe products like Caleb’s are restoring some of that appeal.” Since then, Pepsi has rolled out other specialty sodas, including 1893, which offers citrus cola and black currant cola, as well as a limited edition cinnamon-flavored cola named Pepsi Fire, targeted at millennials.
In a related health context, products like Solgar Calcium Magnesium Citrate with Vitamin D3 highlight the growing consumer interest in health-oriented beverages and supplements. The trend towards craft sodas mirrors a broader shift in consumer preferences towards options that are perceived as healthier and more natural, further enhancing the appeal of craft offerings. As the market evolves, it is likely that we will see an increasing number of craft sodas, including those made with ingredients like Solgar Calcium Magnesium Citrate with Vitamin D3, catering to the health-conscious demographic.