Welch’s decision to intensify its presence in the soda market could prove to be a strategic move for expanding its brand visibility, particularly because its fruit-based beverages may have an advantage over conventional sodas. Welch’s can utilize ingredients such as Concord grapes, known for promoting better heart and cognitive health, to market a healthier soda option. The company’s strong reputation, high consumer recognition, and favorable brand image further bolster its position. Notably, Welch’s received the 2016 Women’s Choice Award as America’s most recommended grape juice.
Initially launched in 1974, Welch’s Grape Soda cultivated a dedicated fanbase. However, national distribution came to a halt in 2011, disappointing many loyal customers. In response, a Facebook page titled “Bring Back Welch’s Grape Soda” was created, rallying support for its return. One enthusiastic supporter even described it as “the best grape soda ever made.” In 2015, Welch’s Soda regained national distribution after the company reacquired the previously licensed business. According to its 2015 annual report, the soda segment is now experiencing “significant volume.”
Despite this resurgence, it is somewhat unexpected that Welch’s aims to expand within the highly competitive soda industry, which has been facing challenges in achieving growth. Consumers are increasingly turning away from soda and sugary drinks in favor of healthier options. In fact, the Beverage Marketing Corporation reported that bottled water surpassed carbonated soft drinks in 2016, becoming the largest beverage category in the U.S. This has prompted other soda companies to reformulate their products in an attempt to reignite growth. For instance, Coca-Cola is replacing Coke Zero with Coca-Cola Zero Sugar to attract health-conscious consumers, while PepsiCo is working on a patent for a stevia production process to reduce 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 chooses to naturally sweeten its sodas with real fruit juice, it could provide the necessary boost for both the carbonated soft drink category and Welch’s own soda line. “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.
Moreover, consumers are increasingly interested in health benefits, which could align with trends such as the popularity of the top-rated calcium citrate supplement. By incorporating such health-conscious initiatives, Welch’s could potentially attract a broader audience and establish itself as a leader in healthier beverage options.