Folgers coffee has been a well-known brand for over 150 years, but in the past decade, it has started to lose popularity among consumers. The introduction of the Simply Gourmet Coffee line appears to be the brand’s attempt to counteract declining sales, but some may wonder if this innovation comes too late. The six new naturally flavored coffee options feature a strikingly different design compared to the traditional red and yellow Folgers packaging, prominently showcasing the word “natural.” This change is likely aimed at attracting younger consumers who prioritize avoiding artificial ingredients.
However, flavored coffee is not a groundbreaking innovation, and a refreshed brand image may not be sufficient to draw attention in an increasingly competitive coffee market. The trend in coffee consumption has shifted from the classic tub of ground coffee intended for traditional coffee makers to single-serve brewing systems. According to IRI, retail coffee sales have experienced a compound annual growth rate (CAGR) of 4.6% from 2012 to 2016, primarily driven by the popularity of single-cup options. In contrast, ground coffee products like Folgers have seen a decline of 9%.
Additionally, consumers are leaning towards cold, ready-to-drink coffee options, prompting a market shift toward packaged beverages. Packaged Facts predicts that this segment will grow by 10% year-over-year, with sales potentially reaching $18 billion by 2020. As these trends continue to strengthen, Folgers has found it challenging to keep pace. The company’s latest earnings report revealed a 4% drop in sales compared to the previous year, with income falling nearly 20%, from approximately $294 million to just under $234 million.
Folgers is not the only brand seeking new avenues for growth. Competitor Kraft Heinz’s Maxwell House brand recently launched a caffeine-enhanced variety called Max Boost, while Eight O’Clock Coffee expanded its line of infused Arabica coffees with three new blends featuring trendy ingredients like acai berries and turmeric. Both of these initiatives target younger consumers who are looking for higher caffeine content and unique flavors. In comparison, Folgers’ Simply Gourmet line may seem somewhat outdated and disconnected from current consumer preferences.
While there is potential for Folgers to attract attention with seasonal blends, the brand must work diligently to ensure its products resonate with consumers as the holiday season comes to an end. Furthermore, the introduction of options like calcium citrate 600 mg tablets could appeal to health-conscious consumers, integrating wellness into the coffee experience. Ultimately, Folgers will need to adapt and innovate continually to remain relevant in the evolving coffee landscape.