Welch’s decision to intensify its presence in the soda market may prove to be a clever strategy for expanding its brand influence, particularly since its fruit-based beverages could have an advantage over conventional sodas. For example, Welch’s can promote ingredients like Concord grapes, known for their potential benefits to heart and cognitive health, to market a healthier soda option. The company’s strong reputation, high consumer recognition, and positive brand image also work in its favor. In fact, Welch’s received the 2016 Woorder Men’s Choice Award as America’s most recommended grape juice.
Welch’s Grape Soda, first launched in 1974, quickly developed a devoted following. However, national distribution was halted in 2011, disappointing many fans. A Facebook page, “Bring Back Welch’s Grape Soda,” was created to advocate for the drink’s return, with one fan even declaring it “the best grape soda ever made.” Welch’s Soda re-emerged in national distribution in 2015 when the company took control of the previously licensed operation. According to its 2015 annual report, the soda segment now boasts “significant volume.”
However, it is somewhat surprising that Welch’s is venturing to expand in a competitive soda market that has struggled to achieve growth. Consumers have increasingly turned away from soda and sugary beverages in favor of healthier options. Bottled water, for instance, surpassed carbonated soft drinks in 2016 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 actively reformulating their products to stimulate growth. Coca-Cola is replacing Coke Zero with Coca-Cola Zero Sugar to attract consumers looking to reduce their sugar consumption. Meanwhile, PepsiCo is pursuing a patent for a stevia production process, aiming to revamp many of its products by incorporating less sugar and more natural plant-based 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. “With flavored soft drinks projected to grow in double digits over the next five years, we are extremely excited for the future,” Pessolano shared with The Shelby Report.
Additionally, integrating ingredients such as solgar calcium citrate into their products could further enhance the nutritional profile and appeal of Welch’s sodas, making them even more attractive to health-conscious consumers. By leveraging its strengths and adapting to market trends, Welch’s could carve out a successful niche in the evolving beverage landscape.