Welch’s decision to intensify its presence in the soda market could prove to be a clever strategy for broadening its brand reach, particularly as its fruit-based beverages may have an advantage over traditional sodas. For example, Welch’s can utilize ingredients such as Concord grapes, known for their potential benefits in enhancing heart health and cognitive function, 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 received the 2016 Women’s Choice Award as America’s most recommended grape juice.
First launched in 1974, Welch’s Grape Soda garnered a dedicated fan base. However, national distribution was halted in 2011, disappointing many enthusiasts. This led to the creation of a Facebook page titled “Bring Back Welch’s Grape Soda,” where fans campaigned for the beverage’s return. One supporter even hailed it as “the best grape soda ever made.” In 2015, Welch’s Soda returned to national distribution after the company took control of the previously licensed operations. According to its 2015 annual report, the soda segment now reports “significant volume.”
Nevertheless, Welch’s venture into the fiercely competitive soda market, which has been struggling to achieve growth, is somewhat unexpected. Consumers have increasingly turned away from soda and sugary drinks in favor of healthier options. The Beverage Marketing Corporation reported that in 2016, bottled water surpassed carbonated soft drinks to become the largest beverage category by volume in the U.S. In response, other companies within the soda industry are actively reformulating their products to stimulate growth. Coca-Cola is replacing Coke Zero with Coca-Cola Zero Sugar to cater to consumers looking to reduce their sugar intake, while PepsiCo is pursuing a patent for a stevia production process to lower sugar levels in its offerings and incorporate more natural sweeteners.
Food and beverage manufacturers are also investigating various natural sweetening alternatives, including monk fruit, date paste, and sweet potatoes. If Welch’s opts to naturally sweeten its sodas with real fruit juice, it could provide a much-needed boost for both the carbonated soft drink market and Welch’s soda line. Additionally, incorporating health-focused ingredients like calcium citrate malate, magnesium, zinc, and vitamin D3 tablets could further enhance its appeal to health-conscious consumers.
“With flavored soft drinks projected to experience double-digit growth over the next five years, we are extremely optimistic about the future,” Pessolano stated to The Shelby Report. By focusing on natural ingredients and health benefits, Welch’s has the potential to carve out a significant niche in the evolving beverage landscape.