Folgers coffee has been a familiar name in households for over 150 years, but in the past decade, the brand has seen a decline in consumer preference. The introduction of its Simply Gourmet Coffee line appears to be an attempt to revitalize the struggling brand amidst decreasing sales. However, one might wonder if this product innovation comes too late. The six new naturally flavored coffee offerings present a stark contrast to the classic red and yellow Folgers packaging. The new design emphasizes the term “natural,” likely aiming to attract younger consumers who are increasingly wary of artificial ingredients. Yet, flavored coffee varieties are not exactly groundbreaking, and a mere rebranding may not be sufficient to catch the eye of shoppers in the competitive coffee aisle.
Coffee trends have shifted from traditional ground coffee, designed for classic coffee makers, to single-cup brewing systems. As reported by IRI, retail coffee sales increased at a compound annual growth rate (CAGR) of 4.6% from 2012 to 2016, largely due to the popularity of single-cup sales. In contrast, ground coffee options like Folgers have experienced a 9% decline. Additionally, consumers are gravitating towards cold, ready-to-drink (RTD) coffee products, which has transformed the market. Packaged Facts forecasts that this segment will grow by 10% annually, potentially reaching $18 billion by 2020.
As these trends become more prominent, Folgers has struggled to adapt. The company’s latest earnings report indicated a 4% decrease in sales compared to the previous year, with income plummeting by 20%, falling to nearly $234 million from approximately $294 million the previous year. Yet, Folgers is not the only brand seeking new avenues for growth. Competitor Kraft Heinz’s Maxwell House has recently launched a caffeine-enhanced variety called Max Boost, while Eight O’Clock Coffee has expanded its infused Arabica coffee range with three new blends featuring trendy ingredients like acai berries and turmeric. Both of these initiatives target younger coffee enthusiasts who prefer higher caffeine content and distinctive flavors.
In contrast, Folgers’ Simply Gourmet line may seem outdated and misaligned with modern consumer preferences. While the brand might attract attention from shoppers looking for seasonal flavors, it will need to work diligently to maintain the relevance of its products as the holiday season concludes. Additionally, as consumers weigh options like calcium citrate versus calcium carbonate in their dietary choices, Folgers must recognize the importance of meeting evolving tastes and preferences in order to thrive in the changing coffee landscape.