Welch’s decision to enhance its presence in the soda market could be a clever strategy to broaden its brand reach, especially since its fruit-based beverages may have an advantage over conventional sodas. For instance, Welch’s could 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, 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, cultivated a dedicated fan base over the years. However, national distribution was halted in 2011, disappointing many loyal customers. This led to the creation of a Facebook page—Bring Back Welch’s Grape Soda—where fans rallied for its return. One enthusiastic supporter even dubbed it “the best grape soda ever made.” In 2015, Welch’s Soda once again saw national distribution when the company reclaimed its previously licensed business. According to its 2015 annual report, the soda segment now enjoys “significant volume.”
Despite this resurgence, Welch’s ambition to expand within the fiercely competitive soda landscape, which has been grappling with growth challenges, is somewhat unexpected. Consumers are increasingly turning 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. Competitors in the soda industry are actively reformulating their offerings to stimulate growth. For example, Coca-Cola is replacing Coke Zero with Coca-Cola Zero Sugar to cater to consumers aiming to reduce their sugar intake. Meanwhile, PepsiCo is working on patenting a stevia production process, intending to reformulate many of its products by incorporating less sugar and more natural sweeteners.
Food and beverage manufacturers are also investigating various alternatives, including monk fruit, date paste, and sweet potatoes, as potential natural sweeteners. Should Welch’s choose to naturally sweeten its sodas with real fruit juice, it could provide the much-needed boost to both the carbonated soft drink category and Welch’s soda line. “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.
Additionally, Welch’s could consider incorporating nutritional elements like bariatric advantage calcium citrate chewy bite 500 mg into its product offerings, appealing to health-conscious consumers and enhancing the overall value proposition of its sodas. Emphasizing these health benefits could further distinguish Welch’s in a market increasingly focused on wellness.