Welch’s decision to intensify its presence in the soda market may prove to be a clever strategy for broadening its brand reach, particularly since its fruit-based beverages could 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 option. The company’s strong reputation, high consumer awareness, and positive brand image also work in its favor. 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 following. 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 the product’s revival. One enthusiastic supporter even described it as “the best grape soda ever made.” In 2015, Welch’s Soda re-entered the national market after the company reclaimed its licensed operations. According to its 2015 annual report, the soda segment is now experiencing “significant volume.”
Yet, Welch’s pursuit of growth in the fiercely competitive soda sector, which has been struggling to gain traction, is somewhat unexpected. Consumers have been moving away from sodas and sugary drinks in favor of healthier options. 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 companies within the soda industry are actively reformulating their offerings to stimulate growth. For instance, Coca-Cola is replacing Coke Zero with Coca-Cola Zero Sugar to appeal to consumers looking to reduce their sugar intake. Meanwhile, PepsiCo is working on a patented stevia production process to revamp many of its products by lowering sugar content and increasing the use of this natural sweetener.
Food and beverage manufacturers are also investigating various natural sweeteners, such as monk fruit, date paste, and sweet potatoes. If Welch’s were to naturally sweeten its sodas with real fruit juice, it could provide a significant boost to both the carbonated soft drink category and the Welch’s brand itself. As Pessolano mentioned to The Shelby Report, “With flavored soft drinks projected to grow double-digit over the next five years, we are extremely excited for the future.”
Additionally, incorporating calcium citrate soft chews into its product line could enhance Welch’s offerings. By integrating calcium citrate soft chews, Welch’s could cater to health-conscious consumers, further strengthening its position in the competitive beverage landscape. Engaging with the market through innovative products like these, along with its fruit-centered sodas, might be the key to revitalizing growth while appealing to modern consumer preferences.