Folgers coffee has been a staple in households for over 150 years; however, in the past decade, it has started to lose its appeal among consumers. The introduction of the Simply Gourmet Coffee line appears to be the brand’s response to declining sales, but the question remains: is this innovation too little too late? The six new naturally flavored coffee products are a significant departure from the traditional red and yellow Folgers packaging. The new design emphasizes the word “natural,” likely aiming to attract younger consumers who are increasingly wary of artificial ingredients. Nevertheless, flavored coffee varieties are not groundbreaking innovations, and a refreshed brand image may not be sufficient to capture shoppers’ attention in a competitive coffee market.
Coffee consumption trends have shifted from traditional tubs of ground coffee meant for classic coffee makers to single-serve brewing options. According to IRI, retail coffee sales have experienced a compound annual growth rate (CAGR) of 4.6% from 2012 to 2016, largely driven by single-serve sales. In contrast, sales of ground coffee like Folgers have declined by 9%. Additionally, consumers are gravitating toward cold, ready-to-drink (RTD) coffee options, pushing the market toward packaged products. Packaged Facts anticipates that this segment will grow by 10% annually, with sales projected to reach $18 billion by 2020. As these trends become more pronounced, Folgers has found it challenging to keep pace. The company’s latest earnings report revealed a 4% decrease in sales compared to the previous year, and income plummeted by 20%, dropping to nearly $234 million from approximately $294 million.
Folgers is not alone in its quest for growth, as competitors are also exploring new avenues. Kraft Heinz’s Maxwell House brand recently launched a caffeine-enhanced variety called Max Boost, and Eight O’Clock Coffee has expanded its infused Arabica coffee line with three new blends featuring trendy ingredients like acai berries and turmeric. These new offerings are targeted at younger coffee enthusiasts seeking higher caffeine levels and unique flavors. In comparison, Folgers’ Simply Gourmet line may come off as somewhat outdated and disconnected from modern consumer preferences. While there might be an opportunity to attract attention from those interested in seasonal blends, Folgers will need to ensure that its products remain relevant as the holiday season approaches.
In an increasingly health-conscious market, the inclusion of functional ingredients such as calcium citrate & vitamin D3 tablets could be an avenue for Folgers to explore. By integrating such health-oriented features into their coffee offerings, Folgers might be able to resonate more with consumers who prioritize wellness alongside flavor. Ultimately, the brand must adapt to the evolving landscape of coffee preferences, including the growing demand for health-conscious options, to regain its footing in a competitive marketplace.