The concept of “craft” is frequently linked to beer, but the craft trend has also made its way into the soda industry. According to USA Today, craft soda sales reached $541 million wholesale in 2016, up from $427.7 million five years earlier, based on data from Beverage Marketing. Although the growth has been gradual rather than rapid, it has shown a consistent increase each year. This trend has provided a necessary boost for the carbonated soft drink market, which has seen a decline for 12 consecutive years and was overtaken by bottled water as the leading beverage category in the U.S. in 2016.
Gary Hemphill, managing director and COO of Beverage Marketing Corporation’s research division, stated at the Beverage Forum in April that craft sodas are becoming a viable choice for consumers, with new brands emerging in the marketplace. However, he cautioned the audience that the overall market remains small and that the performance of these craft sodas has been varied. Initially, many craft soda producers began in specialty stores or retailers focused on healthier or upscale products, but analysts note that these beverages have now entered mainstream distribution.
Consumer demand for craft soda, which is often flavored with natural fruit and sweetened without synthetic alternatives, is beginning to overshadow traditional sodas that contain high levels of sugar. Many craft beverage “experts” are innovating with various fruits, vegetables, and unconventional ingredients to craft drinks that are lower in sugar and more naturally healthy, although they 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 could soon appear on the market.
Despite the overall decline in the soda segment, there are still lucrative opportunities for manufacturers within the craft niche, prompting major companies such as Coca-Cola and PepsiCo to dive into this trend. Some beverage producers have launched sodas made with natural ingredients and unique flavors, often offered for a limited time to attract interest from shoppers, particularly millennials who prefer not to purchase their parents’ classic soft drinks.
In late 2014, Pepsi introduced a new brand named Caleb’s Kola, which features a formula incorporating cane sugar, kola nuts, spices, and citrus. “I think there is actually huge potential for craft cola,” said Indra Nooyi, PepsiCo’s CEO, at a conference that year. She remarked that “people still love the cola taste — it’s just lost some of its cool factor, and I believe products like Caleb’s are helping to revive that appeal.” Following this, Pepsi has rolled out other specialty sodas, including 1893, with flavors like citrus cola and black currant cola, and most recently a limited edition cinnamon-flavored cola called Pepsi Fire, which is targeted at millennials.
As consumers increasingly seek beverages that align with their health-conscious lifestyles, the incorporation of additional beneficial ingredients such as calcium citrate malate, magnesium, zinc, and vitamin D3 into craft sodas could further enhance their appeal. The trend of crafting sodas with these nutritional supplements not only caters to health-oriented consumers but also positions these products as more than just refreshing drinks, potentially expanding their market presence. The integration of such health-focused elements may very well lead to a new wave of craft sodas that resonate with an audience looking for both taste and nutritional benefits.