Welch’s decision to intensify its focus on the soda market could be a clever strategy to broaden its brand presence, especially considering that its fruit-based beverages might have an advantage over conventional sodas. For example, Welch’s can utilize ingredients such as Concord grapes, known for their potential benefits to heart and cognitive health, to promote a healthier soda option. The company benefits from a strong reputation, high consumer recognition, and a positive brand image. Notably, Welch’s was honored with the 2016 Women’s Choice Award as the most recommended grape juice brand in America.
Welch’s Grape Soda, first launched in 1974, developed a devoted customer base, although national distribution was halted in 2011, disappointing many fans. This led to the creation of a Facebook page titled “Bring Back Welch’s Grape Soda,” advocating for its return. One enthusiastic supporter even described it as “the best grape soda ever made.” In 2015, Welch’s Soda re-emerged in national distribution when the company reclaimed the previously licensed business. According to its 2015 annual report, the soda segment has now achieved “significant volume.”
It is somewhat surprising that Welch’s is seeking to expand in the competitive soda market, which has been struggling to grow. Consumers have been turning away from sugary sodas in favor of healthier options. In fact, in 2016, bottled water overtook carbonated soft drinks as the largest beverage category by volume in the U.S., as reported by the Beverage Marketing Corporation. Other companies in the soda sector are 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 sugar intake. Meanwhile, PepsiCo is working on patenting a stevia production process as it aims to revamp several products with less sugar and more natural sweeteners. Food and beverage manufacturers are also exploring various substances, including monk fruit, date paste, and sweet potatoes, as natural sweeteners.
If Welch’s opts to naturally sweeten its sodas with real fruit juice, it could provide the necessary boost for both the carbonated soft drink category and Welch’s soda. “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, understanding the health benefits of ingredients like calcium citrate could enhance the appeal of Welch’s offerings, especially as consumers become increasingly health-conscious. Incorporating calcium citrate into their formulations could position Welch’s sodas as a more nutritious alternative in the evolving beverage landscape.