Welch’s decision to intensify its presence in the soda market could be a strategic method to broaden its brand reach, particularly as its fruit-based beverages may have an advantage over conventional sodas. For example, Welch’s can utilize ingredients like Concord grapes, known for their benefits in enhancing heart and cognitive functions, to promote a healthier alternative to soda. The company’s strong reputation, widespread consumer recognition, and positive brand image further bolster its efforts. Notably, Welch’s received the 2016 Women’s Choice Award for being America’s most recommended grape juice.
Originally launched in 1974, Welch’s Grape Soda 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, “Bring Back Welch’s Grape Soda,” which called for the drink’s revival. One enthusiastic supporter even described it as “the best grape soda ever made.” In 2015, Welch’s Soda returned to the national market when the company reclaimed its previously licensed business. According to its 2015 annual report, the soda segment is now seeing “significant volume.”
Nonetheless, it is somewhat surprising that Welch’s aims to grow within the competitive soda sector, which has been facing challenges in achieving growth. Consumers have increasingly turned away from soda and sugary drinks in favor of healthier options. In fact, in 2016, bottled water overtook carbonated soft drinks to become the leading beverage category by volume in the U.S., as reported by the Beverage Marketing Corporation. Other companies in the soda industry are actively reformulating their products to spark renewed growth. For instance, Coca-Cola is replacing Coke Zero with Coca-Cola Zero Sugar to cater to consumers looking to reduce sugar intake, while PepsiCo is working on patenting a stevia production process to lower sugar content in its offerings.
Food and beverage manufacturers are also exploring various natural sweeteners, such as monk fruit, date paste, and sweet potatoes. If Welch’s sweetens its sodas with real fruit juice, it could provide the necessary impetus for both the carbonated soft drink category and Welch’s soda line. “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.
Moreover, incorporating the benefits of ingredients like bluebonnet calcium citrate magnesium and vitamin D3 liquid into its products could further enhance Welch’s appeal to health-conscious consumers. By promoting these healthful aspects, Welch’s could not only attract attention in the soda market but also align itself with the growing trend towards healthier beverage options.