Soda Grows Up

Craft soft drinks are riding a wave of bubbles.

November 22, 2013

SAN FRANCISCO – The big soft drinks, such as Pepsi and Coca-Cola, have seen declining volume overall lately, but smaller, craft soda makers have seen a resurgence of interest lately, BevNet reports. Gourmet soft drinks such as Reed’s, Fever Tree, Maine Root, Q Tonic, Fentiman’s and GuS have had growing sales.

“I think it’s growing in sort of the same way that craft beer is growing,” said Tom First, a board member of Bruce Cost Ginger Ale. “It’s about quality drinks. And if you’re the quality player in a category where things are big, you can really make a dent.”

Many of the new sodas use Stevia, a natural sweetener, or combine tea or lemonade into their drinks. Also, these gourmet soda companies are not expanding into areas not receptive to their brands.  We’ve had to accept there will be some parts of the market where the product doesn’t sell, while focusing on the parts of the market where it does,” said Craig James, CEO of Fentiman’s North America.

Driving this trends are more restaurants serving homemade soft drinks and the popularity of SodaStream, which allows consumers to make fizzy beverages at home. Boutique shops like Fizzary and Sparkling Ice give customers a cozy place to enjoy bubbly drinks. “There’s an interesting dichotomy out there with consumers,” said James. “The kids want technology and what the modern world can offer them, but they’re sitting in the cool cafes sipping on funky sodas or gourmet teas,” that often have a retro vibe to them.

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