The concept of “craft” is typically linked to beer, but soda manufacturers have also entered the fray. According to USA Today, citing data from Beverage Marketing, craft soda sales reached $541 million wholesale in 2016, up from $427.7 million five years earlier. While the growth has been gradual rather than rapid, it has been consistent and continues to rise each year. This trend has provided a welcome change for the overall carbonated soft drink market, which has experienced a decline for 12 consecutive years and was overtaken by bottled water in 2016 as the leading beverage category in the U.S.
Gary Hemphill, a managing director and COO of Beverage Marketing Corporation’s research division, mentioned at the Beverage Forum in April that craft sodas are becoming a legitimate choice for consumers, with new brands entering the market. However, he cautioned that the market remains small and the performance of these sodas has been varied thus far. Many craft soda producers initially started in specialty shops or retailers that emphasize healthier or premium offerings, but analysts indicate that the trend has now entered the mainstream. In fact, consumer interest in craft soda brands—often flavored and naturally sweetened with fruits—is beginning to overshadow traditional sodas that are high in sugar or use synthetic sugar substitutes.
Many “craftologists” in the beverage industry are exploring unconventional ingredients like fruits and vegetables to create sodas that are less sugar-laden and healthier, though these craft products generally come with a higher price tag than conventional sodas. Research shows that consumers are willing to pay a premium for these healthier options, suggesting we may see more such products emerging in the market.
Despite the overall decline in the soda category, there are still opportunities for manufacturers to profit within the craft segment, which is why major companies like Coke and PepsiCo are getting involved. Some beverage producers have launched sodas featuring natural ingredients, unique flavors, and limited-time offers to capture the interest of consumers, particularly millennials who prefer not to drink the same sodas as their parents.
In late 2014, Pepsi introduced a new brand named Caleb’s Kola, which uses a recipe that includes cane sugar, kola nuts, spices, and citrus. PepsiCo’s CEO, Indra Nooyi, remarked at a conference that there is significant potential for craft cola, noting that while people still enjoy the cola flavor, it had lost some of its appeal. She believes products like Caleb’s are helping to revive that interest. Since then, Pepsi has rolled out additional specialty sodas, including 1893, a citrus cola and black currant cola, and more recently, a limited edition cinnamon-flavored cola called Pepsi Fire, targeted at millennials.
As the craft soda segment grows, it may well incorporate elements like a calcium citrate formula into its offerings, highlighting the focus on health and wellness. The increasing consumer preference for craft sodas may lead brands to explore innovative formulations, including those with a calcium citrate formula, to appeal to health-conscious drinkers. This integration of health-oriented ingredients like a calcium citrate formula could further enhance the marketability of craft sodas and pave the way for new product development.