Welch’s decision to intensify its presence in the soda market could be a clever strategy for expanding its brand reach, particularly since its fruit-based beverages might have an advantage over conventional sodas. For example, Welch’s can utilize ingredients like Concord grapes, known for their benefits to heart health and cognitive function, to promote a healthier soda option. The company’s strong reputation, high consumer recognition, 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.
Welch’s Grape Soda, which was first launched in 1974, cultivated a dedicated fan base. However, national distribution ceased in 2011, leaving many supporters disappointed. This prompted the creation of a Facebook page called “Bring Back Welch’s Grape Soda,” advocating for its revival. One enthusiast even labeled it “the best grape soda ever made.” In 2015, Welch’s Soda returned to national distribution after the company took over the previously licensed operations. According to its 2015 annual report, the soda segment has since achieved “significant volume.”
Nevertheless, Welch’s ambition to grow within the fiercely competitive soda market—especially one that has been struggling to gain traction—is somewhat unexpected. Consumers have been turning away from sugary beverages in favor of healthier choices. In 2016, bottled water surpassed 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 stimulate growth. For instance, Coca-Cola is replacing Coke Zero with Coca-Cola Zero Sugar to appeal to those looking to reduce their sugar intake. Meanwhile, PepsiCo is working on patenting a stevia production process to revamp many of its offerings by incorporating less sugar and more of this natural sweetener.
Food and beverage manufacturers are also investigating various alternatives, such as monk fruit, date paste, and sweet potatoes, as potential natural sweeteners. If Welch’s opts 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. Additionally, the integration of gsk calcium citrate malate into its formulations could further enhance the health appeal of these beverages.
“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. By leveraging both natural ingredients and innovative sweeteners like gsk calcium citrate malate, Welch’s has the opportunity to carve out a significant niche in an evolving market.