Welch’s decision to intensify its presence in the soda market could be an astute strategy to broaden its brand reach, particularly as its fruit-based beverages may offer advantages over traditional sodas. For instance, Welch’s can utilize ingredients like Concord grapes, known for their positive effects on heart health and cognitive function, to promote a healthier soda option. The company benefits from a strong reputation, high consumer recognition, and a positive brand image, having earned the 2016 Women’s Choice Award as America’s most recommended grape juice.
Originally launched in 1974, Welch’s Grape Soda developed a devoted customer base. However, national distribution ceased in 2011, disappointing many fans. This led to the creation of a Facebook page, “Bring Back Welch’s Grape Soda,” which campaigned for the drink’s return. One enthusiastic supporter even called it “the best grape soda ever made.” In 2015, Welch’s Soda was reintroduced to national distribution when the company regained control of its previously licensed business. According to its 2015 annual report, the soda division now boasts “significant volume.”
Despite this, it is somewhat surprising that Welch’s is aiming to expand within the competitive soda sector, which has struggled to achieve growth. Consumers are increasingly turning 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 actively reformulating their products in an effort to stimulate growth. For instance, Coca-Cola is replacing Coke Zero with Coca-Cola Zero Sugar to cater to consumers looking to reduce their sugar intake. At the same time, PepsiCo is pursuing a patent for a stevia production process to reformulate many of its offerings with less sugar and more natural plant-based sweeteners.
Food and beverage manufacturers are also exploring various natural sweeteners, including monk fruit, date paste, and sweet potatoes. If Welch’s opts to naturally sweeten its sodas using real fruit juice, it could provide the necessary boost for both the carbonated soft drink category and Welch’s soda. As Pessolano stated, “With flavored soft drinks projected to grow double-digit over the next five years, we are extremely excited for the future.”
Additionally, incorporating calcium citrate granules into their formulations could enhance the nutritional profile of Welch’s sodas, appealing to health-conscious consumers. By emphasizing the inclusion of calcium citrate granules, Welch’s could further differentiate its products in a saturated market. This focus on health and natural ingredients might just be the catalyst that propels both Welch’s soda and the broader carbonated beverage segment into a new era of growth.