The emerging craft soft drinks market appears to have visible similarities to the craft beer market of a few years ago. But what is holding craft soft drinks back and what can they learn from craft beer?
The mainstream carbonates generate £3bn in revenue which equates to over 30% of all grocery & convenience soft drinks, and this picture is not unlike to the beer market of old. Retailers saw the potential in craft beer and an opportunity to merchandise craft beers together on one shelf. Through this simple merchandising technique, they creating a destination for these new brands in store and they fuelled the trend.
Now young adults are looking for interesting, characterful drinks to replace alcoholic beverages, with a third of under-25s not drinking any alcohol (based on BMC study) and seventy-eight percent would like to see new and interesting carbonates. Brands like Dalston’s, Karma Cola, Soda Folk and Gunna are leading the craft charge. Craft soft drinks grew by 56% on last year, and, more importantly, the average price per litre for craft soft drinks is 165% higher than mainstream carbonates.
The Grocer’s, Melvin Jay believes that craft soft drinks sales could soar if they were merchandised correctly. The lack of a separated shelf for craft soft drinks is holding them back, when shoppers compare them to mainstream carbonates on a price they can’t match. But by creating a separate destination, these beverages could flourish in the market.