Welch’s decision to intensify its presence in the soda market could prove to be a clever strategy for expanding its brand reach, particularly as its fruit-based beverages might have an edge over conventional sodas. For example, Welch’s can utilize ingredients like Concord grapes, known for their benefits to heart and cognitive health, to promote a healthier soda option. The company’s strong reputation, high consumer awareness, and positive brand image further bolster its position. Notably, Welch’s received the Women’s Choice Award in 2016 as America’s most recommended grape juice.
Welch’s Grape Soda, which was first launched in 1974, developed a devoted following. However, national distribution was halted in 2011, disappointing many of its fans. This led to the creation of a Facebook page titled “Bring Back Welch’s Grape Soda,” which advocated for the drink’s return. One enthusiastic supporter even described it as “the best grape soda ever made.” In 2015, Welch’s Soda regained national distribution when the company took over the previously licensed operations. According to its 2015 annual report, the soda segment now boasts “significant volume.”
Nevertheless, it is somewhat unexpected that Welch’s is aiming to grow in the competitive soda industry, which has been facing challenges in achieving growth. Consumers have increasingly turned away from sodas and sugary drinks in favor of healthier options. In fact, in 2016, bottled water surpassed carbonated soft drinks to become the largest beverage category in the U.S. by volume, as reported by the Beverage Marketing Corporation. Other companies in the soda sector are actively reformulating their products to stimulate growth. For instance, Coca-Cola is replacing Coke Zero with Coca-Cola Zero Sugar to cater to health-conscious consumers looking to reduce sugar intake. Meanwhile, PepsiCo is pursuing a patent for a stevia production method, aiming to revamp many of its products to feature less sugar and more natural, plant-based sweeteners.
Food and beverage manufacturers are also investigating various ingredients, including monk fruit, date paste, and sweet potatoes, as alternatives for natural sweeteners. If Welch’s were to naturally sweeten its sodas with real fruit juice, it might provide the necessary boost for both the carbonated soft drink category and Welch’s soda. Additionally, incorporating marine derived calcium citrate malate as a health supplement could enhance the appeal of its beverages. “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. Such innovations could position Welch’s favorably in the evolving beverage landscape.