Folgers coffee has been a well-known brand for over 150 years, but in the past decade, it has started to lose favor among consumers. The introduction of the Simply Gourmet Coffee line appears to be the brand’s attempt to counteract declining sales, but the question remains: is this innovation too little, too late? The six new naturally flavored coffee products feature packaging that is significantly different from the classic red and yellow Folgers design. The new look emphasizes the term “natural,” likely aiming to attract younger consumers who are increasingly wary of artificial ingredients. However, flavored coffee options are far from groundbreaking, and the revamped branding may not be sufficient to stand out in a saturated coffee market.
Coffee consumption trends have shifted away from traditional ground coffee, typically used in classic coffee makers, toward single-serve brewing systems. According to IRI, retail coffee sales experienced a compound annual growth rate (CAGR) of 4.6% between 2012 and 2016, primarily driven by the popularity of single-serve options. In contrast, ground coffee brands like Folgers have seen a decline of 9%. Moreover, consumers are now gravitating towards cold, ready-to-drink (RTD) coffee options, prompting a market shift toward packaged beverages. Packaged Facts anticipates that this segment will grow by 10% annually, potentially reaching $18 billion by 2020.
As these trends intensify, Folgers has struggled to keep pace. The company’s latest earnings report indicated a 4% decline in sales compared to the previous year, with income plummeting nearly 20%, from approximately $294 million to around $234 million. Folgers is not alone in seeking new growth avenues; its competitor, Kraft Heinz’s Maxwell House brand, recently launched a caffeine-boosted variant named Max Boost. Additionally, Eight O’Clock Coffee has diversified its offerings with three new infused Arabica blends featuring trendy ingredients like acai berries and turmeric. Both brands are targeting younger coffee drinkers who seek more caffeine and unique flavors.
In comparison, Folgers’ new Simply Gourmet line may seem somewhat outdated and disconnected from contemporary consumer preferences. While the brand might attract attention from those interested in seasonal blends, it will need to work diligently to ensure its products remain relevant as the holiday season comes to an end. To further enhance its appeal, Folgers could consider incorporating elements like calcium citrate, which is gaining popularity among health-conscious consumers, into their product offerings. This could help the brand connect with a broader audience and stay competitive in the evolving coffee landscape.