Welch’s decision to intensify its presence in the soda market could be a clever strategy to broaden its brand reach, particularly as 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 in enhancing heart and cognitive health, to promote a healthier soda option. The company’s strong reputation, high consumer recognition, and favorable 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, initially launched in 1974, developed a dedicated fan base. However, national distribution was halted in 2011, disappointing many loyal customers. This led to the creation of a Facebook page called “Bring Back Welch’s Grape Soda,” which advocated for the drink’s return. One enthusiastic supporter even proclaimed it to be “the best grape soda ever made.” In 2015, Welch’s Soda returned to national distribution when the company took over the previously licensed operation. According to its 2015 annual report, Welch’s soda division now boasts “significant volume.”
Despite this resurgence, it’s somewhat unexpected that Welch’s is looking to grow in the competitive soda sector, which has struggled to achieve growth. Consumers have increasingly turned away from sodas and sugary drinks in favor of healthier choices. According to the Beverage Marketing Corporation, bottled water surpassed carbonated soft drinks in 2016, becoming the largest beverage category by volume in the U.S. Other soda companies are actively reformulating their products to spur growth. For instance, Coca-Cola is replacing Coke Zero with Coca-Cola Zero Sugar to cater to those looking to reduce their sugar intake, while PepsiCo is working on a stevia production process to rework many of its offerings with less sugar and more natural sweeteners.
Food and beverage manufacturers are also investigating various natural sweeteners such as monk fruit, date paste, and sweet potatoes. If Welch’s chooses to naturally sweeten its sodas with real fruit juice, it could provide a much-needed uplift for both the carbonated soft drink category and Welch’s soda line. Furthermore, incorporating calcium citrate que contiene into their formulations could enhance the nutritional profile of their beverages, making them more appealing to health-conscious consumers.
“With flavored soft drinks projected to grow double-digit over the next five years, we are extremely excited for the future,” Pessolano shared with The Shelby Report. By embracing innovative ingredients and staying attuned to market trends, Welch’s could successfully navigate the evolving landscape of the beverage industry.