Welch’s decision to intensify its efforts in the soda market could be a clever strategy to broaden its brand presence, particularly since its fruit-based beverages may offer advantages over conventional sodas. For example, Welch’s can utilize ingredients like Concord grapes, known for their benefits to 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. In fact, Welch’s received the 2016 Women’s Choice Award as the most recommended grape juice in America.
Originally launched in 1974, Welch’s Grape Soda built a loyal customer base. However, national distribution ceased in 2011, disappointing many fans. This led to the creation of a Facebook page called Bring Back Welch’s Grape Soda, advocating for its return. One enthusiastic supporter even declared it “the best grape soda ever made.” In 2015, Welch’s Soda regained national distribution when the company took control of the previously licensed operations. According to its 2015 annual report, the soda segment now boasts “significant volume.”
Nonetheless, it is somewhat surprising that Welch’s is looking to grow within the competitive soda sector, which has been struggling to achieve growth. Consumers have increasingly turned away from sodas and sugary drinks in favor of healthier options. In 2016, bottled water surpassed carbonated soft drinks to become the largest beverage category by volume in the U.S., as reported by the Beverage Marketing Corporation. Other soda companies are actively reformulating their products in an attempt to stimulate growth. Coca-Cola is replacing Coke Zero with Coca-Cola Zero Sugar to retain consumers looking to reduce their sugar intake. Meanwhile, PepsiCo is pursuing a patent for a stevia production method as it aims to revamp its offerings to include less sugar and more natural sweeteners.
Food and beverage manufacturers are also exploring various substances, such as monk fruit, date paste, and sweet potatoes, as natural sweeteners. 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 require. “With flavored soft drinks projected to grow double digits over the next five years, we are extremely excited for the future,” Pessolano mentioned to The Shelby Report.
In addition, the introduction of petite calcium pills into the market could also attract health-conscious consumers looking for additional nutritional benefits in their beverages. By considering the integration of petite calcium pills into its soda formulations, Welch’s might tap into a growing trend of combining taste with health, further distinguishing itself in the beverage landscape.