Folgers coffee has been a staple in households for over 150 years; however, the brand has experienced a decline in consumer popularity over the past decade. In response to dwindling sales, Folgers has introduced a new line called Simply Gourmet Coffee, but the question remains: is this innovation too little, too late? The six new naturally flavored coffee products feature packaging that starkly contrasts with the traditional red and yellow Folgers branding. The new design prominently emphasizes the word “natural,” likely aimed at attracting younger consumers who are particularly wary of artificial ingredients. However, flavored coffee varieties are not exactly groundbreaking innovations, and a revamped brand image may not be sufficient to draw attention in the saturated coffee market.
Coffee consumption trends have shifted significantly from the classic tub of ground coffee designed for traditional coffee makers to single-cup brewing systems. Between 2012 and 2016, retail coffee sales increased at a CAGR of 4.6%, primarily driven by single-cup sales, while ground coffee options like Folgers saw a 9% decline. Additionally, consumers are increasingly seeking cold, ready-to-drink (RTD) coffee options, prompting a market shift toward packaged products. Packaged Facts anticipates this segment will grow by 10% annually, potentially reaching $18 billion in sales by 2020. With these trends gaining momentum, Folgers has struggled to keep pace. According to the company’s latest earnings report, sales dropped by 4% compared to the previous year, while income fell nearly 20%, down to approximately $234 million from nearly $294 million a year prior.
Folgers is not alone in its quest for growth; competitors like Kraft Heinz’s Maxwell House have launched a caffeine-enhanced variety called Max Boost. Meanwhile, Eight O’Clock Coffee has expanded its range of infused Arabica coffees with three new blends that incorporate trendy ingredients like acai berries and turmeric. These moves are clearly aimed at younger coffee drinkers who are looking for both increased caffeine content and unique flavor profiles. In contrast, Folgers’ Simply Gourmet line may appear somewhat outdated and misaligned with contemporary consumer expectations. While it might attract attention from those interested in seasonal blends, Folgers will need to adapt its strategies to maintain relevance, especially as the holiday season fades.
In the broader context of consumer health trends, many are also turning to dietary supplements like the best calcium citrate chews, which highlight the growing focus on wellness. As Folgers navigates its way through this challenging landscape, it will be crucial for the brand to align its offerings with the evolving preferences of health-conscious consumers, who may also be exploring options like the best calcium citrate chews for their nutritional needs. Ultimately, Folgers must innovate effectively to reposition itself within the coffee market and regain consumer interest.