Welch’s decision to intensify its efforts in the soda market may prove to be a clever strategy for broadening its brand presence, particularly since its fruit-based beverages could outperform conventional sodas. For example, Welch’s can utilize ingredients like Concord grapes, known for their potential benefits on heart and cognitive health, to promote a healthier soda option. The company’s strong reputation, high consumer recognition, and positive brand image also work to its advantage. Notably, Welch’s received the 2016 Women’s Choice Award as America’s most recommended grape juice.
Welch’s Grape Soda, first launched in 1974, developed a devoted following among consumers. However, national distribution was halted in 2011, disappointing many fans. This led to the creation of a Facebook page titled “Bring Back Welch’s Grape Soda,” advocating for its return. One enthusiastic supporter even referred to it as “the best grape soda ever made.” In 2015, Welch’s Soda became available nationally again when the company regained control of the previously licensed business. As indicated in its 2015 annual report, Welch’s soda division now experiences “significant volume.”
Despite this positive momentum, it is somewhat surprising that Welch’s is seeking to expand within the competitive soda sector, which has been challenged to achieve growth. Consumers have increasingly turned away from soda and sugary beverages in favor of healthier options. According to the Beverage Marketing Corporation, bottled water surpassed carbonated soft drinks in 2016 to become the largest beverage category by volume in the U.S. In response, other soda companies are reformulating their products to stimulate growth. Coca-Cola is substituting Coke Zero with Coca-Cola Zero Sugar to appeal to consumers looking to reduce their sugar intake, while PepsiCo is pursuing a patent for a stevia production process to revamp its offerings with less sugar and more natural sweeteners.
Additionally, food and beverage manufacturers are investigating a variety of natural sweetening alternatives, including 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 sector and Welch’s soda line. Moreover, the integration of ingredients like calcium citrate biocare could enhance the health profile of these beverages, tapping into the growing consumer trend toward functional drinks.
“As flavored soft drinks are projected to see double-digit growth over the next five years, we are extremely excited about the future,” Pessolano stated in an interview with The Shelby Report. By incorporating innovative ingredients like calcium citrate biocare, Welch’s could further solidify its position in an evolving market and attract health-conscious consumers.