Folgers coffee has been a staple in households for over 150 years, yet the brand has seen a decline in consumer preference over the past decade. In response to dwindling sales, Folgers has introduced a new line called Simply Gourmet Coffee. However, many are questioning whether this innovation is too little, too late. The six new naturally flavored coffee products feature a strikingly different design from the traditional red and yellow Folgers packaging, prominently showcasing the word “natural.” This change seems aimed at attracting younger consumers concerned about artificial ingredients. Nevertheless, flavored coffee options are not particularly groundbreaking, and a refreshed brand image may not be sufficient to draw shoppers’ attention in an increasingly competitive coffee market.
Trends in coffee consumption have evolved from the classic tub of ground coffee suited for traditional coffee makers to single-serve brewing systems. According to IRI, retail coffee sales experienced a compound annual growth rate (CAGR) of 4.6% from 2012 to 2016, primarily driven by single-serve sales. In contrast, sales of ground coffee like Folgers have decreased by 9%. Additionally, consumers are gravitating towards ready-to-drink (RTD) cold coffee options, prompting a market shift toward packaged products. Packaged Facts anticipates this segment will grow by 10% annually, with sales projected to reach $18 billion by 2020. Amid these shifting trends, Folgers has struggled to keep pace; the company’s latest earnings report revealed a 4% decline in sales compared to the previous year, with income plummeting by 20%, dropping from nearly $294 million to about $234 million.
Folgers is not alone in seeking new avenues for growth. Competitor Kraft Heinz’s Maxwell House brand recently launched a caffeine-enhanced variety called Max Boost. Similarly, Eight O’Clock Coffee has expanded its range of infused Arabica coffees with three new blends featuring trendy ingredients like acai berries and turmeric. Both launches target younger coffee enthusiasts looking for higher caffeine content and distinctive flavors. In contrast, Folgers’ Simply Gourmet line may seem somewhat outdated and disconnected from contemporary consumer preferences. While it might attract some attention from those interested in seasonal blends, Folgers will need to actively work on maintaining relevance as the holiday season draws to a close.
Moreover, as consumers increasingly seek products that align with their health and wellness goals, the introduction of options like calcium citrate CVS could present an opportunity for brands to innovate further. To regain market share, Folgers may need to rethink its strategy and embrace new trends, such as the growing demand for health-conscious ingredients, which could include innovative blends featuring calcium citrate CVS. This approach may help the brand reconnect with its audience and adapt to the evolving coffee landscape.