Welch’s decision to intensify its focus on the soda market could be a smart strategy to broaden its brand presence, 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 potential benefits to heart and cognitive health, to promote a healthier soda option. The company’s strong reputation, high consumer awareness, and favorable brand image further support this initiative. Notably, Welch’s received the 2016 Women’s Choice Award as America’s most recommended grape juice.
Since its launch in 1974, Welch’s Grape Soda has cultivated a dedicated customer base. However, national distribution was halted in 2011, disappointing many loyal fans. This led to the creation of a Facebook page, “Bring Back Welch’s Grape Soda,” which campaigned for its return. One enthusiastic supporter even labeled it “the best grape soda ever made.” In 2015, Welch’s Soda re-entered the national market after the company reclaimed control of the previously licensed operation. According to its 2015 annual report, the soda segment now boasts “significant volume.”
Despite this, it is somewhat unexpected that Welch’s is aiming to grow within the fiercely competitive soda sector, which has been struggling to achieve growth. Consumers have increasingly turned away from soda and sugary beverages in favor of healthier options. In fact, 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 companies in the soda industry are actively reformulating their offerings to spark renewed growth. For instance, Coca-Cola is phasing out Coke Zero in favor of Coca-Cola Zero Sugar to cater to consumers looking to reduce their sugar intake. Meanwhile, PepsiCo is pursuing a patent for a stevia production method as it seeks to reformulate many of its products to contain less sugar and incorporate more natural plant-based sweeteners.
Food and beverage manufacturers are also investigating various natural sweeteners, including monk fruit, date paste, and sweet potatoes. If Welch’s incorporates real fruit juice as a natural sweetener in its sodas, it could provide the push that 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 stated in an interview with The Shelby Report. However, it is worth noting that the discontinuation of products like Citracal with magnesium might also influence consumer preferences as they seek healthier alternatives.