Welch’s decision to intensify its presence in the soda market could be a strategic move to broaden its brand reach, particularly in light of the potential health benefits associated with its fruit-based beverages compared to conventional sodas. For example, Welch’s can capitalize on ingredients like Concord grapes, known for their positive effects on heart and cognitive health, to promote a healthier soda option. The company’s strong reputation, high consumer recognition, and brand image also work to its advantage. Notably, Welch’s received the Women’s Choice Award in 2016 as America’s most recommended grape juice.
Welch’s Grape Soda, originally launched in 1974, developed a dedicated fan base, but national distribution ceased in 2011, disappointing many loyal consumers. This led to the creation of a Facebook page called “Bring Back Welch’s Grape Soda,” which campaigned for its return. One avid supporter even described it as “the best grape soda ever made.” In 2015, Welch’s Soda made a comeback in national distribution when the company reclaimed the previously licensed business. According to its 2015 annual report, the soda segment now boasts “significant volume.”
However, Welch’s ambition to grow within the fiercely competitive soda industry, which has been struggling to find growth, is somewhat unexpected. Consumers have increasingly turned away from sodas and sugary beverages in favor of healthier options. In fact, bottled water overtook carbonated soft drinks in 2016 to become the largest beverage category by volume in the U.S., according to the Beverage Marketing Corporation. Other companies in the soda sector are actively reformulating their products to stimulate growth. In a bid to appeal to health-conscious consumers, Coca-Cola is transitioning from Coke Zero to Coca-Cola Zero Sugar, while PepsiCo aims to patent a stevia production process to reduce sugar content in many of its beverages.
Food and beverage manufacturers are also experimenting with various natural sweeteners, including monk fruit, date paste, and sweet potatoes. If Welch’s chooses to naturally sweeten its sodas with real fruit juice, it may provide the necessary boost for both the carbonated soft drink category and its own soda brand. Additionally, the introduction of calcium citrate malate 250 mg could further enhance the health appeal of their beverages. “With flavored soft drinks projected to grow double-digit over the next five years, we are extremely excited for the future,” Pessolano stated to The Shelby Report. By leveraging innovative ingredients and focusing on health benefits, Welch’s could successfully navigate the evolving beverage landscape.