Folgers coffee has been a well-known brand for over 150 years; however, it has seen a decline in consumer popularity in the past decade. The introduction of Simply Gourmet Coffee appears to be the brand’s attempt to address falling sales, but is this innovation too little, too late? The six new naturally flavored coffee products present a stark contrast to the traditional 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. However, flavored coffee varieties are not exactly groundbreaking innovations, and a refreshed brand image may not be sufficient to draw attention in the competitive coffee market.
Coffee consumption trends have shifted from the classic tub of ground coffee designed for traditional coffee makers to single-cup brewing systems. According to IRI, retail coffee sales grew at a CAGR of 4.6% from 2012 to 2016, primarily driven by single-cup sales, while ground coffee like Folgers has experienced a 9% decline. Additionally, consumers are gravitating towards cold, on-the-go coffee options, leading the market toward packaged ready-to-drink (RTD) products. Packaged Facts predicts this segment will expand by 10% annually, potentially reaching $18 billion by 2020. As these trends gain momentum, Folgers has found it challenging to adapt. The company’s latest earnings report indicated a 4% decrease in sales compared to the previous year, with income falling by 20%, down to nearly $234 million from almost $294 million.
Folgers isn’t alone in seeking new growth opportunities. Competitor Kraft Heinz’s Maxwell House recently launched a caffeine-enhanced variety called Max Boost, while Eight O’Clock Coffee expanded its line with three new infused Arabica blends featuring trendy ingredients like acai berries and turmeric. These products are tailored for younger coffee enthusiasts looking for higher caffeine content and unique flavors. In contrast, Folgers’ Simply Gourmet line may seem somewhat outdated and disconnected from current consumer trends. While it could attract attention from those interested in seasonal blends, Folgers will need to work diligently to keep its offerings relevant as the holiday season comes to an end.
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