Welch’s decision to intensify its presence in the soda market could prove to be a strategic approach to broaden 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 and cognitive health, to promote a healthier soda alternative. The company’s strong reputation, high consumer awareness, and positive brand image further bolster its efforts. 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, cultivated a dedicated fan base. However, national distribution was halted in 2011, disappointing many loyal customers. This led to the creation of a Facebook page titled “Bring Back Welch’s Grape Soda,” which called for the beverage’s revival. One enthusiastic supporter even declared it “the best grape soda ever made.” In 2015, Welch’s Soda regained national distribution when the company took control of the previously licensed operations. According to its 2015 annual report, the soda division now boasts “significant volume.”
Nonetheless, Welch’s intention to grow within the competitive soda landscape, which has faced challenges in achieving growth, is somewhat unexpected. Consumers have increasingly turned away from sodas and sugary drinks in favor of healthier options. In fact, in 2016, bottled water overtook carbonated soft drinks to become the largest beverage category by volume in the U.S., as reported by the Beverage Marketing Corporation. Other soda companies are actively reformulating their products to boost growth. For instance, Coca-Cola is replacing Coke Zero with Coca-Cola Zero Sugar in an effort to keep consumers who wish to reduce their sugar intake. Meanwhile, PepsiCo is pursuing a patent for a stevia production process as part of its initiative to revamp many products by reducing sugar content and incorporating more natural plant-based sweeteners.
Food and beverage manufacturers are also experimenting with various natural sweeteners, including monk fruit, date paste, and sweet potatoes. Should Welch’s choose to sweeten its sodas with real fruit juice, it may provide the necessary boost for both the carbonated soft drink category and Welch’s offerings. Additionally, incorporating health-boosting ingredients like cissus quadrangularis, calcium citrate, and vitamin D3 into their sodas could further enhance their appeal.
“With flavored soft drinks projected to grow in double digits over the next five years, we are extremely excited for the future,” Pessolano told The Shelby Report, indicating a promising outlook for Welch’s expansion in this evolving market.