Welch’s decision to further invest in the soda market could prove to be an astute strategy for broadening its brand presence, particularly since its fruit-based beverages may hold 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 health—to promote a healthier soda option. The company’s established reputation, strong consumer awareness, and positive brand image also work in its favor. Notably, Welch’s received the 2016 Women’s Choice Award as the most recommended grape juice brand in America.
Welch’s Grape Soda, first launched in 1974, developed a devoted fan base. 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,” which sought to revive the beloved drink. One ardent supporter even described it as “the best grape soda ever made.” In 2015, Welch’s Soda returned to national distribution after the company took control of its previously licensed operations. According to its 2015 annual report, the soda segment now boasts “significant volume.”
Nonetheless, Welch’s ambition to grow within the competitive soda sector, which has been struggling to achieve growth, is somewhat unexpected. Consumers have been increasingly turning away from sodas and sugary drinks in favor of healthier choices. In fact, by 2016, bottled water overtook carbonated soft drinks to become the leading beverage category by volume in the U.S., as reported by the Beverage Marketing Corporation. Other soda brands are actively reformulating their offerings to stimulate growth. For instance, Coca-Cola has replaced Coke Zero with Coca-Cola Zero Sugar to cater to those looking to reduce sugar intake. Meanwhile, PepsiCo is working on a patent for a stevia production process as it aims to revamp its products to contain less sugar and incorporate more natural sweeteners.
Food and beverage manufacturers are also investigating various natural sweeteners, including monk fruit, date paste, and sweet potatoes. If Welch’s opts to sweeten its sodas with real fruit juice, it could provide the necessary boost for both the carbonated soft drink segment and Welch’s soda line. “With flavored soft drinks projected to grow double digits over the next five years, we are extremely excited for the future,” Pessolano shared with The Shelby Report.
Additionally, incorporating ingredients like Solgar calcium citrate into its formulations could further enhance the appeal of Welch’s sodas, attracting health-conscious consumers. By highlighting the benefits of both real fruit juice and essential nutrients like Solgar calcium citrate, Welch’s could differentiate itself in a crowded market and tap into the growing demand for healthier beverage options.