“Welch’s Strategic Reentry into the Soda Market: Leveraging Healthier Ingredients to Captivate Consumers”
Welch’s decision to intensify its presence in the soda market might be a clever strategy to broaden its brand reach, particularly given that 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 alternative. The company’s strong reputation, high consumer recognition, and positive brand image also work in its favor. Notably, Welch’s received the 2016 Women’s Choice Award for being America’s most recommended grape juice.
Welch’s Grape Soda, which was first launched in 1974, developed a dedicated customer base. However, national distribution was halted in 2011, disappointing many loyal fans. This led to the creation of a Facebook page—”Bring Back Welch’s Grape Soda”—to advocate for its return. One enthusiastic supporter even referred to it as “the best grape soda ever made.” In 2015, Welch’s Soda regained national distribution when the company took over the previously licensed operations. According to its 2015 annual report, the soda segment has since achieved “significant volume.”
Nonetheless, Welch’s ambition to grow within the competitive soda category, which has been struggling to find growth, is somewhat unexpected. Consumers are increasingly shunning sodas and sugary beverages in favor of healthier options. In fact, by 2016, bottled water had overtaken carbonated soft drinks to become the largest beverage category by volume in the U.S., as reported by the Beverage Marketing Corporation. Many companies in the soda industry are actively reformulating their products to stimulate growth. For instance, Coca-Cola is replacing Coke Zero with Coca-Cola Zero Sugar to cater to consumers looking to reduce their sugar intake. Similarly, PepsiCo is working on a patent for a stevia production process, aiming to revamp various products by incorporating less sugar and more natural plant-based sweeteners. Additionally, food and beverage manufacturers are exploring various substances, such as monk fruit, date paste, and sweet potatoes, as potential natural sweeteners.
If Welch’s chooses to naturally sweeten its sodas with real fruit juice, it could provide the necessary impetus for both the carbonated soft drink category and Welch’s soda line. As noted by Pessolano in an interview with The Shelby Report, “With flavored soft drinks projected to grow double-digit over the next five years, we are extremely excited for the future.” Moreover, for consumers seeking healthier options, incorporating calcium citrate supplements chewable into their diet can complement a balanced lifestyle, aligning with trends towards better nutrition that Welch’s can capitalize on. Therefore, if Welch’s positions its sodas as a better alternative, it could resonate well with health-conscious consumers. The combination of real fruit juice and potentially nutrient-rich ingredients like calcium citrate supplements chewable could enhance its appeal and lead to significant growth in this evolving market.
