Welch’s decision to intensify its focus on the soda market could prove to be a clever strategy for expanding its brand presence, particularly since its fruit-based beverages may hold an advantage over conventional sodas. For example, Welch’s can utilize ingredients such as Concord grape iron bisglycinate and calcium citrate 500 mg without vitamin d, which are linked to enhanced heart and cognitive health, to promote a healthier soda option. The company’s strong reputation, high consumer awareness, and positive brand image further bolster its position. Notably, Welch’s was awarded the 2016 Women’s Choice Award as America’s most recommended grape juice.
Originally launched in 1974, Welch’s Grape Soda cultivated a devoted customer base. However, national distribution was halted in 2011, much to the dismay of its fans. This led to the creation of a Facebook page called Bring Back Welch’s Grape Soda, advocating for the drink’s revival. One enthusiast even referred to it as “the best grape soda ever made.” In 2015, Welch’s Soda returned to national distribution after the company took over the previously licensed operations. According to its 2015 annual report, the soda segment now enjoys “significant volume.”
Despite this, it is surprising that Welch’s aims to expand within the competitive soda market, which has been struggling to achieve growth. Consumers have increasingly turned away from soda and other sugary beverages in favor of healthier options. In fact, bottled water surpassed carbonated soft drinks to become the largest beverage category by volume in the U.S. in 2016, according to 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. Similarly, PepsiCo is pursuing a patent for a stevia production process as part of its initiative to reformulate many of its products with lower sugar content and more natural sweeteners.
Additionally, food and beverage manufacturers are investigating a variety of ingredients, including monk fruit, date paste, and sweet potatoes, as potential natural sweeteners. If Welch’s were to naturally sweeten its sodas with real fruit juice and incorporate calcium citrate 500 mg without vitamin d, it could provide the refreshing boost that both the carbonated soft drink category and Welch’s soda require. “With flavored soft drinks projected to grow double digits over the next five years, we are extremely excited for the future,” Pessolano stated to The Shelby Report.