The term “craft” is commonly linked to beer, but soda producers have also ventured into this realm. According to USA Today, craft soda sales reached $541 million in wholesale in 2016, up from $427.7 million just five years earlier, as reported by Beverage Marketing. While the growth has been gradual rather than rapid, it continues to increase year after year. This trend has provided a much-needed boost for carbonated soft drinks, 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.
Gary Hemphill, managing director and chief operating officer of Beverage Marketing Corporation’s research unit, noted at the Beverage Forum in April that craft sodas have become a viable option for consumers, with new brands entering the market. However, he cautioned that the base is still small, and the performance of these sodas has been mixed thus far. Many craft brewers initially began in specialty shops or retailers that emphasize healthier or upscale products, but analysts suggest that craft sodas have now moved into the mainstream.
Consumer demand for craft soda brands, often flavored and sweetened naturally with fruit, is starting to overshadow traditional sodas that are high in sugar or use synthetic sweeteners. Many beverage “craftologists” are experimenting with fruits, vegetables, and other unconventional ingredients to create drinks that are less reliant on sugar and more health-conscious, although these craft options tend to be more expensive than conventional sodas. Research indicates that consumers are willing to pay a premium for these healthier craft products, suggesting that more of these beverages will likely emerge on the market.
Despite the overall decline in the soda category, there remain opportunities for manufacturers to profit in the craft sector, which has attracted major players like Coke and PepsiCo to join the trend. Some beverage companies have launched sodas made with natural ingredients and unique flavors, often offered for a limited time to capture the interest of shoppers, particularly millennials who prefer not to be seen with their parents’ soft drinks.
In late 2014, Pepsi introduced a new brand called Caleb’s Kola, featuring a formula 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. She noted, “People still love the cola taste — it’s just lost some of its cool factor, and products like Caleb’s are restoring some of that appeal.” Since then, the soda maker has rolled out other specialty sodas, including 1893, a citrus-flavored cola, and a limited-edition cinnamon-flavored cola called Pepsi Fire, aimed specifically at millennials.
As the craft soda market continues to grow, it could also see the introduction of beverages incorporating ingredients like Kirkland calcium citrate, which could appeal to health-conscious consumers. With a steady demand for innovative and healthier options, the craft soda trend shows no signs of slowing down.