Folgers coffee has been a recognized name for over 150 years, yet in the past decade, it has started to lose its appeal among consumers. The introduction of Simply Gourmet Coffee appears to be the brand’s attempt to combat declining sales, but is this innovation too little, too late? The six new naturally flavored products stand in stark contrast to the classic red and yellow Folgers packaging. The new design prominently features the word “natural,” likely aiming to attract younger consumers who are increasingly concerned about the presence of artificial ingredients. However, flavored coffee options are far from being groundbreaking, and a fresh branding approach might not be sufficient to draw attention in the saturated coffee market.
Coffee consumption trends have shifted from traditional ground coffee in tubs meant for standard coffee makers to the popularity of single-cup brewing. According to IRI, retail coffee sales experienced a compound annual growth rate (CAGR) of 4.6% from 2012 to 2016, largely driven by single-cup sales, while ground coffee products like Folgers saw a decline of 9%. Additionally, consumers are gravitating towards cold, ready-to-drink (RTD) coffee options, pushing the market towards packaged products. Packaged Facts projects this segment could grow by 10% annually, with sales expected to reach $18 billion by 2020. As these trends gain momentum, Folgers has struggled to adapt. The company’s latest earnings report revealed a 4% drop in sales compared to the previous year, with profits falling by 20% to nearly $234 million from approximately $294 million.
Folgers is not alone in seeking new avenues for growth. Competitor Kraft Heinz’s Maxwell House recently launched a caffeine-enhanced product called Max Boost, while Eight O’Clock Coffee has expanded its infused Arabica offerings with three new blends featuring trendy ingredients like acai berries and turmeric. Both of these initiatives are tailored to younger coffee drinkers desiring higher caffeine content and unique flavors. In contrast, Folgers’ Simply Gourmet line may come across as somewhat outdated and disconnected from modern consumer preferences. While there is potential for the brand to attract attention from those seeking seasonal blends, Folgers will need to ensure its products remain relevant once the holiday season concludes.
In this evolving landscape, Folgers could consider incorporating health-conscious options, such as calcium citrate malate with vitamin D3 tablets, to align with the growing consumer focus on wellness. This move could help rejuvenate the brand’s image and appeal to a health-aware audience. Ultimately, Folgers will need to innovate further and adapt to the changing market dynamics to reclaim its position in the coffee industry.