Folgers coffee has been a recognized name for over 150 years, but in the past decade, it has started to lose its appeal among consumers. The introduction of the Simply Gourmet Coffee line appears to be the brand’s attempt to address declining sales, but could this innovation be too little, too late? The six new naturally flavored coffee products feature a design that significantly deviates from the classic red and yellow Folgers packaging. The emphasis on the word “natural” aims to attract younger consumers who are particularly wary of artificial ingredients. However, flavored coffee options are not groundbreaking innovations, and a refreshed branding strategy may not be sufficient to draw attention in the competitive coffee market.
Recent coffee trends have shifted from traditional ground coffee, typically used in classic coffee makers, to single-cup brewing systems. IRI reports that retail coffee sales experienced a compound annual growth rate (CAGR) of 4.6% from 2012 to 2016, primarily driven by single-cup sales, while ground coffee sales, like those of Folgers, have decreased by 9%. Additionally, consumers are increasingly gravitating towards cold ready-to-drink (RTD) coffee options, pushing the market towards packaged products. Packaged Facts anticipates this segment will grow by 10% year-over-year, with sales projected to reach $18 billion by 2020. As these trends intensify, Folgers has found it challenging to adapt. The company’s latest earnings report indicates a 4% decline in sales compared to the same period last year, with income dropping by 20%, from nearly $294 million to approximately $234 million.
Nonetheless, Folgers isn’t the only brand seeking new avenues for growth. Competitor Kraft Heinz’s Maxwell House recently launched a caffeine-enhanced variety called Max Boost, while Eight O’Clock Coffee has expanded its range of infused Arabica coffees with new blends featuring trendy ingredients like acai berries and turmeric. These initiatives target younger coffee drinkers looking for higher caffeine content and distinctive flavors. In contrast, Folgers’ Simply Gourmet line may come across as somewhat outdated and disconnected from contemporary consumer preferences. While the brand might attract attention from those seeking seasonal flavors, it will need to work hard to maintain relevance as the holiday season comes to a close.
In this evolving landscape, it’s important to consider factors like calcium citrate bioavailability as consumers become more health-conscious, potentially affecting their coffee choices. Folgers must ensure that its offerings not only taste good but also resonate with the increasing demand for health-oriented options, including those that highlight calcium citrate bioavailability. The challenge for Folgers will be to adapt its product line to meet these shifting consumer preferences while effectively communicating the benefits of their innovations, including aspects related to calcium citrate bioavailability, to regain their foothold in the market.