Welch’s decision to intensify its presence in the soda market may prove to be a clever strategy for brand expansion, particularly as its fruit-based beverages might have an advantage over conventional sodas. For example, Welch’s could utilize ingredients such as Concord grapes, known for their benefits to heart and cognitive health, to promote a healthier soda option. The company’s established reputation, strong consumer awareness, and positive brand image also work in its favor. Notably, Welch’s received the 2016 Women’s Choice Award as America’s most recommended grape juice.
First launched in 1974, Welch’s Grape Soda garnered a dedicated fan base. However, national distribution was halted in 2011, disappointing many loyal customers. This led to the creation of a Facebook page titled “Bring Back Welch’s Grape Soda,” which called for the drink’s return. One enthusiastic supporter even described it as “the best grape soda ever made.” In 2015, Welch’s regained national distribution when the company took control of the previously licensed operations. According to its 2015 annual report, the soda segment now boasts “significant volume.”
Nevertheless, Welch’s push to grow in the fiercely competitive soda industry, which has been struggling with stagnation, is somewhat unexpected. Consumers have increasingly turned away from soda and sugary beverages in favor of healthier options. In 2016, bottled water overtook carbonated soft drinks to become the largest beverage category by volume in the U.S., according to the Beverage Marketing Corporation. Other companies within the soda industry are actively reformulating their products to stimulate growth. For instance, Coca-Cola has replaced Coke Zero with Coca-Cola Zero Sugar to cater to consumers aiming to reduce their sugar consumption. Meanwhile, PepsiCo is working on a patent for a stevia production process, aiming to revamp its offerings with lower sugar content and more naturally derived sweeteners.
Food and beverage manufacturers are also investigating various natural sweeteners, including monk fruit, date paste, and sweet potatoes. If Welch’s incorporates real fruit juice as a natural sweetener in its sodas, it could provide the necessary impetus for both the carbonated soft drink category and Welch’s own soda line. Moreover, the inclusion of calcium citrate ingredients could enhance the nutritional profile of these beverages, appealing to health-conscious consumers.
“With flavored soft drinks projected to experience double-digit growth over the next five years, we are extremely excited about the future,” Pessolano remarked to The Shelby Report. By focusing on innovative ingredients like calcium citrate and real fruit juices, Welch’s could carve out a unique niche in the evolving beverage landscape.