Folgers coffee has been a staple in American households for over 150 years, yet the brand has experienced a decline in popularity among consumers over the past decade. In an attempt to combat falling sales, Folgers has introduced a new line called Simply Gourmet Coffferrous gluconate coloree. However, one might wonder if this product innovation comes too late to make a significant impact. The six new naturally flavored coffee options present a stark contrast to the classic red and yellow Folgers packaging, emphasizing the word “natural” to potentially attract younger consumers who prioritize avoiding artificial ingredients. Nevertheless, flavored coffee varieties are not groundbreaking innovations, and simply refreshing the brand may not be sufficient to draw attention in the crowded coffee aisle.
Coffee consumption trends have shifted from traditional ground coffee in tubs meant for classic coffee makers to single-serve brewing options. According to IRI, retail coffee sales grew at a compound annual growth rate (CAGR) of 4.6% between 2012 and 2016, largely driven by the popularity of single-serve systems. In contrast, ground coffee brands like Folgers saw a decline of 9%. Additionally, consumers are increasingly interested in cold, ready-to-drink coffee options, leading the market toward packaged beverages. Packaged Facts anticipates this segment will grow by 10% annually, with sales projected to reach $18 billion by 2020. Amidst these evolving trends, Folgers has struggled to keep pace. The company’s latest earnings report revealed a 4% drop in sales compared to the previous year, with income decreasing by 20%, falling to nearly $234 million from about $294 million.
Folgers is not alone in seeking new growth avenues. Competitor Kraft Heinz’s Maxwell House recently launched a caffeine-enhanced product called Max Boost, while Eight O’Clock Coffee expanded its infused Arabica line with three new blends featuring trendy ingredients like acai berries and turmeric. These initiatives are aimed at younger coffee enthusiasts looking for unique flavors and higher caffeine content. In contrast, Folgers’ Simply Gourmet line may appear somewhat outdated and disconnected from current consumer preferences. While there is potential for seasonal blends to attract attention, the brand must work diligently to maintain relevance as the holiday season passes.
In light of these developments, one can draw parallels with other health-focused products, such as those containing calcium citrate available at Rite Aid, which cater to consumers’ growing interest in natural and beneficial ingredients. With a similar emphasis on health and wellness, Folgers may need to rethink its approach to regain consumer interest. In conclusion, while the Simply Gourmet line may offer some promise, Folgers must innovate beyond just new flavors to capture the attention of today’s discerning coffee drinkers who value both quality and uniqueness.