For over 150 years, Folgers coffee has been a staple in households, but the brand has seen a decline in consumer popularity over the past decade. Its new Simply Gourmet Coffee line appears to be a response to falling sales, but many wonder if this innovation comes too late. The six new naturally flavored coffee products feature packaging that significantly departs from the traditional red and yellow Folgers design. This new look emphasizes the word “natural,” likely aiming to attract younger consumers who are increasingly wary of artificial ingredients. However, flavored coffees are not a groundbreaking innovation, and updated branding alone may not be sufficient to draw attention in an increasingly crowded coffee market.
Coffee consumption trends have shifted away from traditional ground coffee in tubs meant for classic coffee makers, with a growing preference for single-cup brewing methods. According to IRI, retail coffee sales grew at a compound annual growth rate (CAGR) of 4.6% from 2012 to 2016, largely driven by single-cup sales. In contrast, sales of ground coffee like Folgers have declined by 9%. Consumers are also leaning towards cold to-go coffee options, propelling the market towards ready-to-drink (RTD) products. Packaged Facts predicts this segment will see a 10% year-over-year growth, with sales expected to reach $18 billion by 2020.
As these trends gain momentum, Folgers has struggled to adapt. The company’s latest earnings report revealed a 4% decline in sales compared to the previous year, with income dropping nearly 20% from approximately $294 million to about $234 million. Folgers is not the only brand exploring new avenues for growth; competitor Kraft Heinz’s Maxwell House brand has introduced Max Boost, a caffeine-enhanced variety. Similarly, Eight O’Clock Coffee has expanded its line of infused Arabica coffees with three new blends that incorporate trendy ingredients like acai berries and turmeric. These launches target younger coffee drinkers seeking higher caffeine content and unique flavor profiles.
In comparison, Folgers’ Simply Gourmet line may seem somewhat outdated and disconnected from current consumer preferences. While it could appeal to those interested in seasonal blends, Folgers will need to work on making its products relevant as the holiday season approaches. Additionally, incorporating ingredients such as vitamin citrate could enhance the perceived health benefits of their offerings, aligning more closely with what modern consumers are looking for. Without significant changes, Folgers may find it challenging to regain its footing in the evolving coffee landscape.