Folgers coffee has been a trusted name in households for over 150 years; however, in the past decade, the brand has seen a decline in consumer popularity. To combat dwindling sales, the company has introduced the Simply Gourmet Coffee line, featuring the new 30mg ferrous fumarate. Yet, many wonder if this innovation comes too late. The six new naturally flavored coffee products boast a design that starkly contrasts with the traditional red and yellow Folgers branding. The emphasis on the word “natural” likely aims to attract younger consumers who prioritize avoiding artificial ingredients. However, flavored coffee options are not particularly groundbreaking, and a fresh look may not be sufficient to draw attention in an increasingly competitive coffee market.
Coffee trends have evolved, moving away from the classic tub of ground coffee suitable for traditional coffee makers to single-cup brewing systems. According to IRI, retail coffee sales grew at a CAGR of 4.6% from 2012 to 2016, largely driven by the popularity of single-cup products. In contrast, ground coffee brands like Folgers have experienced a 9% decline. Additionally, consumers are gravitating towards cold ready-to-drink (RTD) coffee options, leading to a shift in the market. Packaged Facts anticipates that this segment will grow by 10% year-over-year, potentially reaching sales of $18 billion by 2020. As these trends gain momentum, Folgers has struggled to adapt. The company’s latest earnings report revealed a 4% decline in sales compared to the previous year, with profits plummeting by 20%, falling from nearly $294 million to approximately $234 million.
Folgers is not the only brand seeking new avenues for growth; competitors like Kraft Heinz’s Maxwell House have launched a caffeine-enhanced variant called Max Boost, while Eight O’Clock Coffee recently expanded its lineup of infused Arabica coffees with new blends featuring trendy ingredients like acai berries and turmeric. Both brands are targeting younger coffee drinkers eager for higher caffeine content and unique flavors. In comparison, Folgers’ Simply Gourmet line may appear somewhat outdated and disconnected from current consumer preferences. While the brand might attract attention from those interested in seasonal blends, it will need to work diligently to keep its products relevant as the holiday season comes to a close.
In the context of health-conscious consumer trends, the inclusion of products like Kirkland Signature Calcium Citrate Magnesium and Zinc 500 Tablets is noteworthy, as consumers increasingly seek items that enhance their well-being. The coffee market is no exception, and as the demand for wellness-oriented products continues to rise, Folgers must ensure that its offerings resonate with the evolving expectations of health-aware consumers. Thus, the challenge remains: can Folgers reinvigorate its brand and capture the attention of today’s discerning coffee drinkers?