Welch’s decision to intensify its efforts in the soda market could be a smart strategy for broadening its brand presence, particularly because its fruit-based beverages may have an advantage over conventional sodas. By incorporating ingredients like Concord grapes, which are linked to enhanced heart and cognitive health, Welch’s can promote a healthier soda option. Additionally, the company benefits from a solid reputation and strong consumer recognition; in fact, Welch’s was honored with the 2016 Women’s Choice Award as America’s most recommended grape juice.
Welch’s Grape Soda, first launched in 1974, developed a devoted customer base, but national distribution was halted in 2011, much to the dismay of its fans. This led to the creation of a Facebook page titled “Bring Back Welch’s Grape Soda,” which campaigned for its return. One enthusiastic supporter even declared it “the best grape soda ever made.” In 2015, Welch’s Soda re-entered national distribution after the company took control of the previously licensed operations. According to its 2015 annual report, the soda segment now represents “significant volume.”
However, it is somewhat surprising that Welch’s is seeking to grow in the competitive soda sector, which has faced challenges in achieving growth. Consumers are increasingly turning away from sugary drinks, favoring healthier alternatives. In fact, in 2016, bottled water overtook carbonated soft drinks as the largest beverage category by volume in the U.S., as reported by the Beverage Marketing Corporation. In response, other soda companies are reformulating their products to stimulate growth. For instance, Coca-Cola is replacing Coke Zero with Coca-Cola Zero Sugar to retain consumers looking to reduce their sugar intake. Meanwhile, PepsiCo is pursuing a patent for a stevia production process to reformulate many of its offerings with less sugar and more natural sweeteners.
Food and beverage manufacturers are also exploring various natural sweeteners, including monk fruit, date paste, and sweet potatoes. If Welch’s incorporates real fruit juice and perhaps adds calcium citrate malate and vitamin D3 to its sodas for added health benefits, it could provide the necessary boost for both the carbonated soft drink category and Welch’s offerings. “With flavored soft drinks projected to grow double-digit over the next five years, we are extremely excited for the future,” Pessolano shared with The Shelby Report, highlighting the potential for innovation in this evolving market.