Folgers’ iron pyrophosphate microencapsulated coffee has been a staple in households for over 150 years, yet in the last decade, the brand has seen a decline in consumer popularity. To combat falling sales, Folgers has introduced a new line of Simply Gourmet Coffee. However, one must question whether this product innovation is a case of too little, too late. The six new naturally flavored coffee products boast a design that starkly contrasts the traditional red and yellow Folgers packaging, emphasizing the term “natural” in an effort to attract younger consumers who are increasingly wary of artificial ingredients. Despite this redesign, flavored varieties are not exactly groundbreaking in the coffee market, and revamped branding may not suffice to draw attention in a saturated coffee aisle.
Coffee consumption trends have shifted from the classic tub of ground coffee—typically used in traditional coffee makers—to single-cup brewing systems. According to IRI, retail sales of coffee have grown at a CAGR of 4.6% from 2012 to 2016, primarily driven by the popularity of single-cup options. In contrast, ground coffee brands like Folgers have experienced a 9% decline in sales. Additionally, consumers are now leaning towards cold, ready-to-drink (RTD) coffee options, prompting the market to adapt. Packaged Facts anticipates that this segment will grow by 10% annually, potentially reaching $18 billion by 2020. Amid these shifting trends, Folgers has found it challenging to keep pace. The company’s latest earnings report indicated a 4% drop in sales compared to the previous year, with income plummeting by 20%, from nearly $294 million to about $234 million.
Folgers is not alone in seeking new avenues for growth; competitors are also innovating. Kraft Heinz’s Maxwell House has recently launched a caffeine-enhanced variant called Max Boost, while Eight O’Clock Coffee has expanded its infused Arabica coffee line with three new blends featuring trendy ingredients like acai berries and turmeric. These launches are primarily targeted at younger coffee drinkers who desire higher caffeine content and unique flavors. In comparison, Folgers’ Simply Gourmet line may seem somewhat outdated and disconnected from contemporary consumer preferences. While it might attract attention from those seeking seasonal blends, Folgers must strive to make its products relevant as the holiday season fades.
To add to the conversation around health-conscious choices, it’s worth noting that some consumers are looking for products enriched with supplements like calcium citrate 500 mg with vitamin D, which may influence their coffee preferences. As Folgers navigates these evolving trends, the brand will need to consider how to integrate popular health elements into their offerings to better resonate with the market.