Welch’s decision to intensify its focus on the soda market could be a clever strategy to broaden its brand presence, particularly given that its fruit-based beverages could have an advantage over conventional sodas. For example, Welch’s could utilize ingredients like Concord grapes, known for their benefits to heart and cognitive health, to promote a healthier soda option. The company’s strong reputation, high consumer recognition, and positive brand image further bolster its position. 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 developed a dedicated fan base. However, national distribution was halted in 2011, disappointing many loyal consumers. In response, a Facebook page, “Bring Back Welch’s Grape Soda,” was created to advocate for its revival. One enthusiastic supporter even labeled it “the best grape soda ever made.” Welch’s Grape Soda returned to national distribution in 2015 when the company took control of the previously licensed operations. According to its 2015 annual report, the soda segment now boasts “significant volume.”
Nonetheless, Welch’s ambition to grow within the competitive soda sector, which has been struggling to achieve growth, is somewhat unexpected. Consumers have increasingly turned away from soda and sugary beverages in favor of healthier options. As reported by the Beverage Marketing Corporation, bottled water surpassed carbonated soft drinks to become the largest beverage category by volume in the U.S. in 2016. Other companies in the soda industry are actively reformulating their products to stimulate growth. For instance, Coca-Cola is replacing Coke Zero with Coca-Cola Zero Sugar to cater to consumers looking to reduce sugar intake. Meanwhile, PepsiCo is working on a patent for a stevia production process as it revamps many of its products to incorporate less sugar and more natural, plant-based sweeteners.
Food and beverage manufacturers are also investigating a variety of natural sweeteners, including monk fruit, date paste, and sweet potatoes. If Welch’s chooses to naturally sweeten its sodas with real fruit juice, it could provide a necessary boost to both the carbonated soft drink category and Welch’s soda line. “With flavored soft drinks projected to grow double digits over the next five years, we are extremely excited for the future,” Pessolano shared with The Shelby Report.
Furthermore, while exploring healthier options, Welch’s could consider the best calcium citrate magnesium supplement as part of its marketing strategy, appealing to health-conscious consumers. By integrating natural ingredients and wellness-promoting substances, Welch’s can position itself advantageously in the evolving beverage landscape.