Welch’s decision to intensify its presence in the soda market could be a clever strategy to broaden its brand reach, especially as its fruit-based beverages may have an advantage over conventional sodas. For example, Welch’s can utilize ingredients like Concord grapes, known for promoting better heart and cognitive health, to market a healthier soda option. The company’s solid reputation, strong consumer recognition, and favorable brand image further bolster its position. Notably, Welch’s received the 2016 Women’s Choice Award as America’s most recommended grape juice.
Welch’s Grape Soda, first introduced in 1974, developed a dedicated fan base. Unfortunately, national distribution was halted in 2011, disappointing many loyal customers. This led to the creation of a Facebook page called “Bring Back Welch’s Grape Soda,” which advocated for the beverage’s return. One enthusiastic fan even declared it “the best grape soda ever made.” In 2015, Welch’s Grape Soda saw a revival in national distribution after the company regained control of the previously licensed business. According to its 2015 annual report, the soda segment now enjoys “significant volume.”
However, Welch’s move to expand in the competitive soda market, which has been struggling to achieve growth, is somewhat unexpected. Consumers have increasingly turned away from soda and sugary drinks in favor of healthier options. In fact, in 2016, bottled water overtook carbonated soft drinks to become the largest beverage category by volume in the U.S., as reported by the Beverage Marketing Corporation. Other companies in the soda industry are also reformulating their products to stimulate growth. For instance, Coca-Cola is replacing Coke Zero with Coca-Cola Zero Sugar to cater to consumers aiming to reduce their sugar intake. Meanwhile, PepsiCo is pursuing a patent for a stevia production method as it seeks to reformulate many of its products with less sugar and more natural plant-based sweeteners.
Food and beverage companies are exploring a variety of alternatives like monk fruit, date paste, and sweet potatoes as natural sweeteners. If Welch’s opts to sweeten its sodas with real fruit juice, it could provide the necessary boost for both the carbonated soft drink sector and Welch’s soda line. “With flavored soft drinks projected to grow double-digit over the next five years, we are extremely excited for the future,” said Pessolano in an interview with The Shelby Report.
In addition, the price of CCM tablets has become a topic of interest among consumers looking for health supplements, and if Welch’s can integrate this element into their marketing, it could further enhance their appeal in the health-conscious market. By strategically positioning its products and optimizing pricing strategies, Welch’s could tap into new consumer segments while revitalizing its soda line.