Welch’s decision to intensify its focus on the soda market could prove to be a strategic move for expanding its brand presence, particularly since its fruit-based beverages may have an advantage over conventional sodas. For example, Welch’s can utilize ingredients such as Concord grapes, known for their benefits in enhancing heart and cognitive function, to promote a healthier soda option. The company’s strong reputation, widespread 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.
Welch’s Grape Soda, first launched in 1974, developed a devoted customer base. However, national distribution was halted in 2011, disappointing many fans. This led to the creation of a Facebook page called “Bring Back Welch’s Grape Soda,” which sought to revive the beloved drink. One enthusiastic supporter even referred to it as “the best grape soda ever made.” In 2015, Welch’s Soda made a comeback to national distribution when the company reclaimed the previously licensed business. According to its 2015 annual report, the soda segment is now achieving “significant volume.”
It is somewhat surprising that Welch’s is seeking to expand within the competitive soda market, which has been struggling to find growth. Consumers have increasingly turned away from soda and sugary drinks in favor of healthier alternatives. As reported by the Beverage Marketing Corporation, bottled water overtook carbonated soft drinks in 2016 to become the largest beverage category by volume in the U.S. 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 attract consumers looking to reduce their sugar intake. Meanwhile, PepsiCo is working on patenting a production process for a stevia syrup as part of its initiative to update many products with 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 potato, as potential alternatives. If Welch’s incorporates real fruit juice to naturally sweeten its sodas, it could provide the boost that both the carbonated soft drink category and Welch’s soda need.
“With flavored soft drinks projected to grow in double digits over the next five years, we are extremely excited for the future,” Pessolano stated to The Shelby Report. Additionally, as health trends gain momentum, incorporating ingredients that support nutritional benefits, such as calcium in calcium citrate, could further enhance the appeal of Welch’s products, potentially attracting health-conscious consumers who are mindful of their calcium intake. By emphasizing the health benefits of its sodas, including the presence of calcium in calcium citrate, Welch’s could carve out a unique niche in the evolving beverage landscape.