Welch’s decision to intensify its focus on the soda market could prove to be a strategic move in 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, which are linked to enhanced heart and cognitive health, to promote a healthier soda option. The company’s established reputation, high consumer awareness, and positive brand image further enhance its prospects. Notably, Welch’s was awarded the 2016 Women’s Choice Award as America’s most recommended grape juice.
First launched in 1974, Welch’s Grape Soda garnered a devoted customer base. However, national distribution was halted in 2011, disappointing many fans. This led to the creation of a Facebook campaign titled “Bring Back Welch’s Grape Soda,” which sought to revive the beloved drink. One enthusiastic supporter even described it as “the best grape soda ever made.” Welch’s Soda returned to national distribution in 2015 when the company resumed control of the previously licensed business. According to its 2015 annual report, the soda segment now boasts “significant volume.”
Despite this progress, it is somewhat surprising that Welch’s aims to expand within the competitive soda sector, which has been struggling to achieve growth. Consumers are increasingly shunning sodas and sugary beverages in favor of healthier options. In fact, as reported by the Beverage Marketing Corporation, bottled water surpassed carbonated soft drinks to become the largest beverage category by volume in the U.S. in 2016. 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 appeal to consumers looking to reduce their sugar intake, while PepsiCo is pursuing a patent for a stevia production process as it aims to revamp many of its products to feature less sugar and more plant-based sweeteners.
Food and beverage manufacturers are also investigating a range of natural sweeteners, including monk fruit, date paste, and sweet potatoes. If Welch’s were to naturally sweeten its sodas with real fruit juice, it could provide a much-needed revitalization for both the soda category and Welch’s soda line. “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.
Furthermore, incorporating ingredients like Citracal Slow Release 600 could enhance the nutritional profile of Welch’s sodas, attracting health-conscious consumers. By focusing on such innovations, Welch’s could not only boost its product appeal but also contribute to the overall growth of the soda market.