For over 150 years, Folgers coffee has been a staple in households, but in the past decade, consumer interest has waned. The new Simply Gourmet Coffee line appears to be the brand’s attempt to reverse declining sales. However, is this product innovation arriving too late? The six new naturally flavored coffee offerings boast a strikingly different look compared to the traditional red and yellow Folgers packaging, prominently featuring the word “natural” to appeal to younger consumers who prioritize avoiding artificial ingredients. Yet, flavored varieties are not exactly groundbreaking innovations in coffee, and mere rebranding may not effectively capture shoppers’ attention in the saturated coffee aisle.
Coffee consumption trends have shifted from the classic tub of ground coffee meant for traditional brewers to single-cup brewing systems. According to IRI, retail coffee sales saw a compound annual growth rate (CAGR) of 4.6% from 2012 to 2016, largely driven by single-cup sales. In contrast, ground coffee brands like Folgers have experienced a 9% decline. Additionally, consumers are gravitating towards cold, ready-to-drink (RTD) coffee options, pushing the market towards packaged products. Packaged Facts projects that this segment will grow 10% annually, potentially reaching $18 billion by 2020. Amid these evolving trends, Folgers has struggled to adapt. The company’s latest earnings report revealed a 4% drop in sales compared to the previous year, with income plummeting by 20%, down to nearly $234 million from approximately $294 million last year.
Folgers isn’t alone in its quest for new growth opportunities. Competitor Kraft Heinz’s Maxwell House has recently launched a caffeine-enhanced variant called Max Boost. Meanwhile, Eight O’Clock Coffee has expanded its selection of infused Arabica coffees with three new blends featuring trendy ingredients like acai berries and turmeric. These initiatives are aimed at attracting younger coffee drinkers seeking both higher caffeine levels and unique flavors. In contrast, Folgers’ new Simply Gourmet line may seem somewhat outdated and disconnected from current consumer preferences. While it might capture the interest of those looking for seasonal blends, Folgers will need to work diligently to keep its products relevant as the holiday season comes to an end.
In light of these trends, Folgers may want to consider incorporating health-conscious ingredients, similar to the benefits offered by country life calcium citrate, which could resonate with consumers looking for added value in their coffee choices. Ultimately, the brand’s challenge will be to innovate meaningfully in a competitive landscape that increasingly prioritizes quality, flavor, and health benefits.