Folgers coffee has been a recognizable name for over 150 years, yet the brand has seen a decline in consumer preference over the past decade. In response to dwindling sales, the launch of Simply Gourmet Coffee appears to be Folgers’ attempt at revitalization, but is this innovation too little, too late? The six new naturally flavored coffee options showcase a stark departure from the traditional red and yellow Folgers packaging. The design emphasizes the word “natural,” likely aiming to appeal to younger consumers who are increasingly wary of artificial ingredients. However, flavored varieties are not particularly groundbreaking in the coffee market, and a rebranding might not be sufficient to grab shoppers’ attention in the saturated coffee aisle.
Coffee trends have shifted significantly from the classic tub of ground coffee, which is typically used in traditional coffee makers, to single-cup brewing systems. According to IRI, retail coffee sales experienced a compound annual growth rate (CAGR) of 4.6% from 2012 to 2016, largely driven by the popularity of single-cup options. In contrast, ground coffee brands like Folgers have seen a 9% decline. Additionally, consumers are increasingly gravitating towards cold, ready-to-drink (RTD) coffee alternatives, pushing the market toward packaged products. Packaged Facts forecasts that this segment will grow 10% year-over-year, with sales projected to reach $18 billion by 2020.
As these trends continue to evolve, Folgers has struggled to adapt. The company’s latest earnings report revealed a 4% decrease in sales compared to the previous year, with income plummeting nearly 20% to around $234 million from nearly $294 million last year. Nonetheless, Folgers is not the only brand seeking new avenues for growth. Competitor Kraft Heinz’s Maxwell House recently introduced a caffeine-enhanced variant called Max Boost, while 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 of these launches target younger coffee drinkers looking for higher caffeine content and unique flavors.
In comparison, Folgers’ new Simply Gourmet line may come off as somewhat outdated and disconnected from contemporary consumer expectations. While the brand might attract attention from shoppers seeking seasonal blends, it will need to work diligently to maintain relevance as the holiday season concludes. As consumers turn to platforms like Amazon to explore options such as Amazon Citracal, Folgers faces the challenge of reinvigorating its image and offerings to align with modern coffee trends.