Welch’s, the food company best known for its grape-based products, is breathing new life into its stagnant fruit-flavored soda line.

In a press release last week, the Concord, Mass.-based company announced a partnership with Global Beverage Corporation, an independent company that was created to lead an expansion of the Welch’s soda line with new flavors and formats.

“Working with Global Beverage is an exciting opportunity for our business,” said Welch’s CEO Brad Irwin in a press release. “Global Beverage’s expertise in the industry and distribution excellence combined with our brand make this collaboration good business, and more importantly will bring consumers access to more of their favorite soda.”

Speaking with BevNET, Global Beverage president and CEO Anthony Pessolano, a former vice president and general manager at Pepsi Bottling Group for over 25 years, explained that the opportunity to acquire the rights to Welch’s soda division in North America, which is separate from the company’s sparkling juices line, was presented to him about a year ago. Before signing the deal, the company did extensive consumer research on the brand; at the time, Welch’s grape and strawberry sodas, which at one point were distributed nationally at Walmart, had downsized to, in essence, a regional brand with limited reach along the East Coast and relatively low priority status amongst Welch’s product offerings.

“My perspective was we needed to invest the time and the money to do the consumer research to see what the condition of the brand was,” he said.

From last summer through December 2016, Global Beverage conducted mall intercept testing and found that while the availability of Welch’s sodas had decreased, consumers retained strong identification with the brand name and the offering itself, recording scores that Pessolano called among the highest he’d ever seen.

“You had that consumer who said they remembered growing up on the brand and had fond memories,” he said. “The other piece, and this is a tremendous credit to the Welch’s trademark, was that there was this extraordinary halo effect to the other Welch’s products. It really had this very powerful twofold consumer affinity where we thought there is something to work with here.”

In reviving a legacy beverage brand that consumers associate to some degree with nostalgia, Global Beverage isn’t seeking to change the formulation, at least in the short term. That means using familiar ingredients — high fructose corn syrup, some artificial colors and flavors — that health conscious consumers are increasingly steering away from, but the brand’s research has Pessolano confident that the demand for flavored soft drinks remains strong.

“This is still a gigantic business,” he said of the sugar-sweetened soda category. He noted that test responses from one demographic in particular — males aged 18 to 34 — were very strong, a group he said “is not historically as concerned about their ability to burn off calories when they are in their mid-20s.” Sugar content and calories were not disclosed, but Pessolano said that the relaunched brand would contain some natural flavors and less than 2 percent Concord grape juice.

For now, Global Beverage is looking to target opportunities primarily in the 20 oz. resealable single-serve bottle segment, supplemented by 12 oz. aluminum cans and 2 L bottles. The line’s redesigned bottles will be rolling out to retail and foodservice outlets in five flavors — grape, strawberry, fruit punch, pineapple and orange — in about five weeks and will be supported by a primarily social media-based marketing campaign.

In terms of distribution, Pessolano explained that the company’s was not looking to utilize DSD or even return to the club stores like Walmart and Sam’s Club. “I’m less interested in traditional large format food where it’s two liters and cans because the reality is that the big companies own that space — it’s very, very price competitive and really difficult to make money,” he said. “We want to be able to focus on the channels that get us up-and-down-the-street in the single-serve category.”

While the company’s focus will be on full-flavored sodas for the next 18 to 24 months, Pessolano hinted that Welch’s next soda innovation would go in a different direction.

“We’ve got some really exciting development plans that are part of our strategic plans that will address some the questions [about sugar and artificial flavors,]” he said. “We’ve seen this movie, we know where we have to take this down the road.”

CONCORD, Mass., Aug. 9, 2017 /PRNewswire/ — Welch’s, the iconic brand famous for its grape juice, and Global Beverage Corporation, a New Jersey based soft drink company, announces their collaboration to expand the Welch’s soda line with new flavors and formats that will bring Welch’s to the forefront of the carbonated soft drink industry.

Combining Welch’s trusted brand with Global Beverage’s extensive experience in the soda industry presents an exciting opportunity to revitalize the iconic Welch’s soda at retail and food service outlets. The parties intend to start the soda re-launch with classic Welch’s flavors like grape, white grape, strawberry, fruit punch, orange, pineapple and peach. From there, they will branch out into new flavors and concepts.

Welch’s will provide the ingredients for the soda, including Concord grapes grown by its family farmer owners. Global Beverage will bring its entrepreneurial spirit and decades of beverage industry experience. Together, the companies expect to bring Welch’s soda once again within reach to consumers across the US.

“Working with Global Beverage is an exciting opportunity for our business. Global Beverage’s expertise in the industry and distribution excellence combined with our brand make this collaboration good business, and more importantly will bring consumers access to more of their favorite soda,” said Brad Irwin, Chief Executive Officer for Welch’s.

Anthony Pessolano, President and CEO of Global Beverage Corporation and a 35 year veteran of the soft drink business, is equally enthusiastic about the potential for Welch’s Soda. “We did extensive consumer research, and the feedback is as strong as anything I have ever seen. Clearly the consumer has a strong affinity for the Welch’s trademark that translates to strong carbonated soft drink purchase intent. With flavored soft drinks projected to grow double digit over the next 5 years, we are extremely excited for the future,” said Pessolano.

About Welch’s
Welch’s is the processing and marketing subsidiary of the National Grape Cooperative. Located across America and in Ontario, Canada, the cooperative is made up of approximately 900 family farmers who own the company and grow the delicious and inherently healthy Concord grapes used in Welch’s juices and other grape-based products. Welch’s products are sold throughout the United States and in 40 countries around the globe. Welch’s is an Equal Opportunity Employer-Minorities/Female/Disabled/Veterans. www.welchs.com

About Global Beverage
Global Beverage Corporation (GBC) is a privately held soft drink marketing and distribution company with its headquarters located in Oradell New Jersey. Focusing on regional and national soft drink brands utilizing consumer insights and trends, GBC looks to bring new, relevant and emerging carbonated soft drinks to strategic customers and markets.