Welch’s decision to intensify its presence in the soda market could prove to be a clever strategy for broadening its brand reach, particularly since its fruit-based beverages might have an advantage over conventional sodas. For example, Welch’s could highlight ingredients such as Concord grapes, known for their potential benefits to heart and cognitive health, to promote a healthier soda option. The company’s strong reputation, widespread 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 launched in 1974, garnered a dedicated following. However, national distribution ceased in 2011, disappointing many loyal fans. In response, a Facebook campaign titled “Bring Back Welch’s Grape Soda” emerged, advocating for the drink’s return. One enthusiastic supporter even dubbed it “the best grape soda ever made.” In 2015, Welch’s Soda made a comeback in national distribution after the company reclaimed the previously licensed business. According to its 2015 annual report, the soda segment now experiences “significant volume.”
Despite this resurgence, Welch’s move to expand within the fiercely competitive soda industry—especially one that has struggled to find growth—raises eyebrows. Consumers have increasingly shunned sodas and sugary drinks in favor of healthier choices. According to 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 sector are actively reformulating their products to spark growth. For instance, Coca-Cola is replacing Coke Zero with Coca-Cola Zero Sugar to cater to consumers looking to reduce their sugar intake, while PepsiCo is pursuing a patent for a stevia production method to reformulate its offerings with less sugar and more natural sweeteners.
Food and beverage manufacturers are also investigating various natural sweeteners, including monk fruit, date paste, and sweet potatoes. If Welch’s opts to naturally sweeten its sodas with real fruit juice, it could provide the necessary boost for 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 stated to The Shelby Report.
Additionally, as consumers become more health-conscious, questions about ingredients such as calcium citrate arise. Is calcium citrate bad for you? This inquiry reflects the growing awareness surrounding dietary choices, which could influence how brands like Welch’s formulate their products moving forward. Ultimately, if Welch’s can successfully navigate this landscape, it may not only revitalize its soda line but also contribute positively to the broader market.