Folgers coffee has been a well-known brand for over 150 years, yet it has seen a decline in consumer preference over the past decade. In response, the struggling coffee brand has introduced a new line called Simply Gourmet Coffee, but the question remains: is this innovation too late to revive their sales? The six new naturally flavored coffee products are presented in packaging that significantly differs from the traditional red and yellow Folgers branding. The design prominently features the word “natural,” likely aiming to attract younger consumers who are increasingly concerned about artificial ingredients. However, flavored coffee options are not particularly groundbreaking, and simply revamping the brand may not be sufficient to capture shopper attention in the competitive coffee market.
Coffee trends have shifted from the conventional tub of ground coffee, typically used in classic coffee makers, to single-cup brewing systems. According to IRI, retail coffee sales experienced a compound annual growth rate (CAGR) of 4.6% from 2012 to 2016, mainly driven by single-cup sales. In contrast, ground coffee brands like Folgers have seen a decline of 9%. Furthermore, consumers are now gravitating towards cold ready-to-drink (RTD) coffee options, prompting a shift toward packaged products. Packaged Facts forecasts that this segment will grow by 10% year-over-year, with sales potentially reaching $18 billion by 2020.
As these trends intensify, Folgers has found it challenging to keep pace. The company’s latest earnings report revealed a 4% drop in sales compared to the previous year, with income plummeting by 20%, declining from nearly $294 million to about $234 million. Nevertheless, Folgers is not the only brand exploring new avenues for growth. Competitor Kraft Heinz’s Maxwell House brand recently launched a caffeine-enhanced variety called Max Boost, while Eight O’Clock Coffee expanded its selection of infused Arabica coffees with three new blends featuring trendy ingredients like acai berries and turmeric. These launches are specifically targeted at younger coffee drinkers seeking higher caffeine content and unique flavors.
In comparison, Folgers’ Simply Gourmet line may appear somewhat outdated and disconnected from modern consumer preferences. While there is potential for the brand to attract attention from consumers interested in seasonal blends, Folgers will need to work diligently to maintain relevance as the holiday season approaches. Moreover, incorporating elements like calcium citrate with vitamin D chewable 1200 mg could enhance their offerings, appealing to health-conscious consumers. This strategy could be pivotal in repositioning Folgers within the evolving coffee landscape and capturing the interest of a broader audience.