Craft Sodas Are Growing In Popularity

Posted On: 5/30/2017

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TAGS: craft soda sales, carbonated soft drinks, soda trends, USA Today, Beverage Marketing Corp.,, vending U.S. soft drink market

NEW YORK CITY -- Amid declining and flat sales for carbonated soft drinks, the craft soda segment is "capturing share by hyping premium and natural ingredients, creative flavors, limited runs, unusual packaging or their local roots," a recent USA Today article reported.

USA Today cited data from New York City-based researcher Beverage Marketing Corp., which says that craft-soda volume grew 5% in 2016 to 88.8 million gallons, compared with 2015, when the rest of the carbonated beverage industry was down 0.85%. Craft soda reached $541 million wholesale in 2016, up from $427.7 million in 2011, according to BMC.

The newspaper pointed out that craft sodas are attracting millennials, who are looking for new taste experiences. The milliennial factor could benefit the overall U.S. soft drink market, which BMC estimates to be worth $52.5 billion.

There is no formal definition of craft soda, although it tends to use "healthier" ingredients and cane sugar, is made in small batches and sold locally, and costs more than mass-market brands. Some well-known craft soda brands include Jones Soda, Reed's, Brooklyn Soda, Dry Sparkling, Cool Mountain Beverages, Real Sugar Soda and Cannonborough Beverage. Coca-Cola Co. and PepsiCo offer craft lines in their beverage portfolios, too.