Welch’s decision to intensify its presence in the soda market could be a clever strategy to broaden its brand reach, particularly because its fruit-based beverages may have an advantage over conventional sodas. For example, Welch’s can utilize ingredients like 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 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, which was first launched in 1974, developed a devoted following. 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 enthusiastic supporter even declared it “the best grape soda ever made.” In 2015, Welch’s Soda returned to national distribution when the company reclaimed its previously licensed business. According to its 2015 annual report, the soda segment now boasts “significant volume.”
Nevertheless, it is somewhat unexpected that Welch’s aims to grow in the competitive soda sector, which has been struggling to achieve growth. Consumers have increasingly turned away from sodas and other sugary beverages in favor of healthier options. In fact, the Beverage Marketing Corporation noted that bottled water surpassed carbonated soft drinks to become the leading beverage category by volume in the U.S. in 2016. Other soda companies are actively reformulating their drinks to stimulate growth. Coca-Cola is replacing Coke Zero with Coca-Cola Zero Sugar to cater to consumers looking to reduce their sugar intake. Meanwhile, PepsiCo is pursuing a patent for a stevia production process as part of its efforts to reformulate many of its products to contain less sugar and incorporate more natural 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 the boost that both the carbonated soft drink category and Welch’s soda need. “With flavored soft drinks projected to grow double digits over the next five years, we are extremely excited for the future,” Pessolano told The Shelby Report.
Additionally, incorporating ingredients like Citracal and vitamin D could further enhance the health profile of Welch’s sodas, appealing to health-conscious consumers. By leveraging these elements, Welch’s could not only differentiate itself in a saturated market but also position its products as a more nutritious alternative, fostering consumer loyalty and potentially capturing a larger market share.