Welch’s decision to intensify its presence in the soda market could prove to be a clever strategy for broadening its brand reach, particularly since its fruit-based beverages may have an advantage over conventional sodas. For example, Welch’s can capitalize on ingredients such as Concord grapes, which are linked to enhanced heart and cognitive function, to promote a healthier soda option. The company’s strong reputation, widespread 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, first launched in 1974, developed a dedicated customer base. However, national distribution was halted in 2011, disappointing many loyal fans. This led to the creation of a Facebook page called “Bring Back Welch’s Grape Soda,” which advocated for its revival. One devoted fan even referred to it as “the best grape soda ever made.” In 2015, Welch’s Soda returned to national distribution after the company took control of the previously licensed operations. According to its 2015 annual report, the soda segment now boasts “significant volume.”
Despite this resurgence, Welch’s intention to grow within the competitive soda market, which has been grappling with slow growth, is somewhat unexpected. Consumers have increasingly turned away from sodas and sugary beverages in favor of healthier options. In fact, by 2016, bottled water had surpassed carbonated soft drinks to become the leading beverage category by volume in the U.S., as reported by the Beverage Marketing Corporation. Other players in the soda industry are actively reformulating their products to stimulate growth. For example, Coca-Cola is replacing Coke Zero with Coca-Cola Zero Sugar to cater to consumers looking to reduce their sugar intake. Similarly, PepsiCo is pursuing a patent for a stevia production process as part of its initiative to revamp its products, aiming for reduced sugar content and increased use of natural sweeteners.
Food and beverage manufacturers are also exploring various natural sweeteners, including monk fruit, date paste, and sweet potatoes. If Welch’s incorporates real fruit juice to naturally sweeten its sodas, it could provide the much-needed boost for both the carbonated soft drink category and Welch’s offerings. Highlighting the health benefits, the addition of calcium citrate could further position Welch’s sodas as healthy options in the marketplace.
“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 focusing on healthy options and integrating beneficial ingredients like calcium citrate, Welch’s could redefine its soda line and attract health-conscious consumers.