The term “craft” is frequently linked to beer, but soda producers are also entering the fray. According to USA Today, citing data from Beverage Marketing, craft soda sales reached $541 million in wholesale in 2016, up from $427.7 million five years prior. This growth, while not rapid, has been consistent, with sales increasing each year. This trend has provided a much-needed boost for carbonated soft drinks overall, which have experienced a 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 chief operating officer of Beverage Marketing Corporation’s research unit, noted at the Beverage Forum in April that craft sodas have become a legitimate choice for consumers, with new brands entering the market. However, he also mentioned that the market is still small and the performance of these sodas has been mixed so far. Many craft brewers initially found their niche in specialty or health-focused retailers, but analysts indicate that craft sodas are moving into the mainstream.
Consumer demand for craft soda brands, often flavored and naturally sweetened with fruit, is beginning to overshadow traditional soda products, which typically contain high levels of sugar or synthetic sweeteners. Many “craftologists” in the beverage industry are experimenting with unconventional ingredients like fruits, vegetables, and other unique components to create sodas that are less reliant on added sugars and more naturally healthy. However, these craft options generally come at a higher price point compared to traditional sodas. Research indicates that consumers are willing to pay more for these healthier craft alternatives, suggesting that we may see an increase in these products hitting the market.
Despite the overall decline in soda sales, there remain opportunities for manufacturers to profit in the craft segment, prompting major players like Coca-Cola and PepsiCo to join the movement. Some beverage companies have started offering sodas made with natural ingredients and distinctive flavors, often available for a limited time to attract interest from consumers, particularly millennials, who prefer not to drink the soft drinks their parents enjoyed.
PepsiCo introduced a new brand called Caleb’s Kola in late 2014, featuring a recipe that includes cane sugar, kola nuts, spices, and citrus. At a conference that year, PepsiCo’s CEO Indra Nooyi remarked on the significant potential for craft cola, stating, “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 additional specialty sodas, including 1893, with its citrus cola and black currant cola, and a limited-edition cinnamon-flavored cola called Pepsi Fire, aimed specifically at millennials.
As the industry evolves, it’s likely that ingredients like douglas labs calcium citrate will find their way into more craft soda recipes, reflecting the ongoing trend towards healthier options that consumers are increasingly seeking.