Beverage Makers Hope To Ride The Craft Beer Wave

Craft beer has become a cultural phenomena in the U.S. as consumer preferences shift to value little-known brands and small batch brews.

The trend toward specialty beer has leaked into the rest of the beverage industry, as big name brands look to expand their offerings to cash in on customers' changing tastes.

Coffee Gets A Makeover

Starbucks Corporation (NASDAQ: SBUX) took over the coffee industry when it entered the market, but coffee connoisseurs have begun to turn their nose up at the Seattle chain in favor of better quality, smaller brands.

In an effort to stay current, the company has revamped its coffee offerings and created a premium brand that gives consumers that "small batch" feel. Starbucks has begun testing a "Reserve Roastery" location in Seattle, where customers can sample flavors and learn more about how coffee is made as well as enjoy premium drinks not offered at other locations.

Related Link: Piper Jaffray: Starbucks "Can And Should Do Massive Share Repurchase"

Exotic Soda

PepsiCo, Inc. (NYSE: PEP) is similarly looking to rework soda's image by creating a new line of beverages with premium ingredients and exotic flavors. Called Stubborn Soda, the line will feature drinks like agave vanilla cream and black cherry with tarragon. Restaurants that carry the line will offer customers a unique experience, as the machines dispensing the sodas are said to mimic that of a draft beer lever.

What's Next?

Consumers' demand for one-of-a-kind, artisan products is likely to spawn a wave of new food and beverage lines in the coming years.

Well-known brands will have to create specialized lines with healthier ingredients to stay relevant as more people search for unique offerings without added chemicals and preservatives.

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