Welch’s decision to intensify its presence in the soda market could be a strategic approach to broaden its brand reach, particularly since its fruit-based beverages may have an advantage over conventional sodas. For example, Welch’s can utilize ingredients like Concord grapes, known for their potential benefits in enhancing heart and cognitive function, to promote a healthier soda option. The company’s strong reputation, high consumer awareness, and positive brand image further support its endeavors. 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 fan base. However, national distribution was halted in 2011, disappointing many enthusiasts. In response, a Facebook page titled “Bring Back Welch’s Grape Soda” was created to advocate for its revival, with one admirer even calling it “the best grape soda ever made.” Fortunately, Welch’s Soda regained national distribution in 2015 when the company reclaimed the previously licensed business. According to its 2015 annual report, the soda segment now boasts “significant volume.”
Yet, it is somewhat surprising that Welch’s aims to grow within the competitive soda industry, which has been facing challenges in driving growth. Consumers have increasingly turned away from sodas and sugary beverages in favor of healthier choices. As reported by the Beverage Marketing Corporation, bottled water surpassed carbonated soft drinks in 2016, becoming the largest beverage category by volume in the U.S. Other companies in the soda sector are actively reformulating their products to stimulate growth. For instance, Coca-Cola is transitioning from Coke Zero to Coca-Cola Zero Sugar to retain consumers looking to reduce their sugar intake. Meanwhile, PepsiCo is working on patenting a stevia production process as it aims to revamp many of its products with less sugar and more natural, plant-based sweeteners.
Food and beverage manufacturers are also investigating a variety of natural sweeteners, including monk fruit, date paste, and sweet potatoes. If Welch’s incorporates real fruit juice as a natural sweetener in its sodas, it could provide a much-needed boost to both the carbonated soft drink category and Welch’s soda line. Moreover, with flavored soft drinks expected to see double-digit growth over the next five years, excitement for the future is palpable. “We are extremely excited for the future,” Pessolano stated to The Shelby Report. Additionally, by ensuring that their products are gluten-free and enriched with calcium citrate, Welch’s could further appeal to health-conscious consumers seeking nutritious options in the beverage market.