Folgers coffee has been a staple in households for over 150 years, yet in the past decade, this iconic brand has started to lose its appeal among consumers. The introduction of the Simply Gourmet Coffee line appears to be Folgers’ attempt to address declining sales, but is this innovation too late to make an impact? The six new naturally flavored coffee options present a stark contrast to the traditional red and yellow Folgers packaging. The new design prominently features the word “natural,” likely aimed at attracting younger consumers who are increasingly concerned about artificial ingredients.
However, flavored coffee varieties are not revolutionary, and simply updating the packaging may not be sufficient to draw attention in the competitive coffee market. In recent years, coffee trends have shifted from the classic tub of ground coffee, typically used in traditional coffee makers, to single-cup brewing systems. According to IRI, retail coffee sales have seen a compound annual growth rate (CAGR) of 4.6% from 2012 to 2016, primarily due to the rise in single-cup sales. In contrast, ground coffee brands like Folgers have experienced a decline of 9%. Additionally, consumers are increasingly gravitating towards cold, ready-to-drink (RTD) coffee options, pushing the market toward packaged products. Packaged Facts estimates that 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 revealed a 4% decline in sales compared to the previous year, with income falling by 20%, from nearly $294 million to approximately $234 million. Folgers is not alone in its search for growth, as competitors like Kraft Heinz’s Maxwell House recently launched a caffeine-enhanced product called Max Boost. Similarly, Eight O’Clock Coffee has broadened its range of infused Arabica coffees by introducing three new blends containing trendy ingredients such as acai berries and turmeric. Both brands are targeting younger coffee consumers who seek higher caffeine content and distinctive flavors.
In comparison, Folgers’ Simply Gourmet line may seem somewhat outdated and disconnected from the evolving preferences of consumers. While there is potential for attracting attention from those seeking seasonal blends, Folgers must ensure that its products remain relevant as the holiday season approaches. To enhance its offerings, Folgers could consider incorporating calcium citrate mg into its new blends, appealing to health-conscious consumers looking for added nutritional benefits. Ultimately, the brand will need to work diligently to resonate with a market that increasingly values innovation and health-oriented choices.