Folgers coffee has been a well-known brand for over 150 years, yet 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 response to declining sales, but many wonder if this innovation is merely a case of too little, too late. The six new naturally flavored coffee products showcase a design that significantly deviates from the classic red and yellow Folgers packaging. By prominently featuring the word “natural,” the brand seems to aim at attracting younger consumers who are increasingly wary of artificial ingredients. However, flavored coffee options are not particularly groundbreaking, and a refreshed brand image may struggle to draw attention in a saturated coffee market.
The coffee landscape has evolved from traditional tubs of ground coffee designed for classic coffee makers to an emphasis on single-cup brewing. According to IRI, retail coffee sales enjoyed a compound annual growth rate (CAGR) of 4.6% from 2012 to 2016, largely driven by single-cup sales. In contrast, ground coffee products like Folgers have experienced a 9% decline. Additionally, consumers are gravitating towards cold, ready-to-drink (RTD) coffee options, prompting a shift in the market towards packaged beverages. Packaged Facts anticipates that this segment will grow by 10% year-over-year, potentially reaching $18 billion in sales by 2020.
As these trends intensify, Folgers has found it challenging to adapt. The company’s latest earnings report indicates a 4% drop in sales compared to the previous year, with income plummeting by 20%, from nearly $294 million to around $234 million. Folgers isn’t alone in seeking new avenues for growth; competitors like Kraft Heinz’s Maxwell House have recently launched a caffeine-enhanced variant called Max Boost, while Eight O’Clock Coffee has expanded its line of infused Arabica coffees with new blends incorporating trendy ingredients like acai berries and turmeric. These initiatives are aimed at attracting younger coffee drinkers who seek heightened caffeine levels and unique flavors.
In contrast, Folgers’ Simply Gourmet line may seem somewhat outdated and disconnected from contemporary consumer preferences. While there is potential for the brand to capture attention from those interested in seasonal blends, it will need to ensure its products remain relevant as the holiday season concludes. To enhance its appeal, Folgers might consider incorporating ingredients like calcitriol calcium citrate malate into its offerings, as health-conscious consumers increasingly look for added benefits in their beverages. This could provide an edge in a competitive market, but the brand will need to act swiftly to revitalize its image and product line.