Welch’s decision to intensify its presence in the soda market could be a strategic move to broaden its brand reach, particularly given that its fruit-based beverages may have an advantage over conventional sodas. For example, Welch’s can utilize ingredients like Concord grapes, known for their potential benefits in enhancing heart and cognitive health, to promote a healthier soda option. The company’s strong reputation, high consumer awareness, and positive brand image also work in its favor. Notably, Welch’s was honored with the 2016 Women’s Choice Award as America’s most recommended grape juice.
Welch’s Grape Soda, first launched in 1974, developed a loyal consumer base. However, national distribution was halted in 2011, much to the dismay of its many admirers. This prompted the creation of a Facebook page titled “Bring Back Welch’s Grape Soda,” which advocated for the return of the beverage. One enthusiastic fan even declared it “the best grape soda ever made.” In 2015, Welch’s Soda returned to national distribution when the company reclaimed the previously licensed business. According to its 2015 annual report, the soda segment now boasts “significant volume.”
Nonetheless, it is somewhat surprising that Welch’s is seeking to expand within the competitive soda landscape, which has been struggling to achieve growth. Consumers have increasingly turned away from soda and other sugary drinks in favor of healthier options. In fact, bottled water 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. For instance, Coca-Cola is replacing 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, aiming to revamp many of its products to incorporate less sugar and more natural plant-based sweeteners.
Food and beverage manufacturers are exploring various substances, 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 necessary boost to both the carbonated soft drink category and Welch’s soda line. Furthermore, the addition of ingredients like calcium citrate with magnesium could enhance the health appeal of their beverages. “With flavored soft drinks projected to grow double digits over the next five years, we are extremely excited for the future,” Pessolano shared with The Shelby Report. Emphasizing health and natural ingredients, such as calcium citrate with magnesium, could play a significant role in capturing the interest of health-conscious consumers.