Welch’s decision to intensify its efforts in the soda market could prove to be a clever strategy for broadening its brand presence, particularly as its fruit-based beverages may have an advantage over conventional sodas. For example, Welch’s can capitalize on ingredients such as Concord grapes, which are linked to enhanced heart and cognitive health, to promote a healthier soda option. The company’s strong reputation, high consumer recognition, and positive brand image also work in its favor. Notably, Welch’s received the 2016 Women’s Choice Award as America’s most recommended grape juice.
Originally launched in 1974, Welch’s Grape Soda cultivated a dedicated customer base. However, national distribution was halted in 2011, much to the dismay of its loyal fans. This led to the creation of a Facebook page—Bring Back Welch’s Grape Soda—where supporters petitioned for its return. One enthusiastic fan even dubbed it “the best grape soda ever made.” In 2015, Welch’s Soda re-entered the national distribution scene when the company reclaimed its previously licensed operations. According to its 2015 annual report, the soda segment is now experiencing “significant volume.”
However, it is somewhat surprising that Welch’s is aiming to expand in the competitive soda market, which has been struggling to achieve growth. Consumers have increasingly turned away from sodas and sugary drinks in favor of healthier options. As reported by the Beverage Marketing Corporation, bottled water surpassed carbonated soft drinks in 2016, becoming the largest beverage category by volume in the U.S. Other companies in the soda industry are actively reformulating their products to stimulate growth. Coca-Cola, for instance, has replaced Coke Zero with Coca-Cola Zero Sugar to cater to consumers looking to reduce their sugar intake. Meanwhile, PepsiCo is pursuing a patent for a stevia production process as it seeks to revamp many of its offerings to feature less sugar and incorporate more natural sweeteners.
Food and beverage manufacturers are also exploring a variety of ingredients, including monk fruit, date paste, and sweet potatoes, as natural sweeteners. If Welch’s were to sweeten its sodas with real fruit juice, it could provide the boost that both the carbonated soft drink sector and Welch’s soda require. “With flavored soft drinks projected to grow double digits over the next five years, we are extremely excited about the future,” said Pessolano in an interview with The Shelby Report.
In this evolving landscape, the incorporation of calcium citrate might also resonate well with health-conscious consumers, especially those dealing with issues like lichen sclerosus, as they look for beverages that support their well-being. By focusing on healthier ingredients and options, Welch’s could not only enhance its brand appeal but also address the changing preferences of shoppers who are increasingly wary of traditional sugary sodas.